Seeing Value After a Plunge, Hedge Funds Bet on Energy Stocks
(DealBook) – A few hedge fund managers have been tiptoeing back into the beaten-down energy sector.
While many investors, including Warren E. Buffett, were selling energy stocks in the final three months of 2014, several hedge funds sought to profit on the turmoil, regulatory filings showed on Tuesday. Third Point, the firm run by Daniel S. Loeb, acquired a sizable stake in the oil refinery company Phillips 66, while Leon G. Cooperman’s Omega Advisors amassed a new position in Laredo Petroleum, and Viking Global Investors, led by Andreas Halvorsen, increased its stake in Cheniere Energy by several million shares.
At the same time, other hedge funds reduced their holdings of technology stocks, including Apple and Alibaba, which had recently attracted investors in droves.
Read the entire article at DealBook
More coverage: Reuters and Bloomberg News
Creditors say RadioShack Timed Ch. 11 for Hedge Fund Trade: Filing
(Reuters) – Unsecured creditors of RadioShack Corp said the electronics retailer timed its bankruptcy to benefit a hedge fund trading strategy even though it cost the company millions of dollars in added losses, according to a court filing.
A committee of the company’s landlords, suppliers and bondholders asked the U.S. Bankruptcy Court in Wilmington, Delaware for subpoena power to investigate their suspicions.
They want access to nonpublic information they say could confirm that RadioShack’s bankruptcy was an “assisted suicide” led by its largest shareholders, the Standard General hedge fund and LiteSpeed Management.
“The problem is, there’s no suicide note, and there are too many unanswered questions,” said the filing by the RadioShack’s official committee of unsecured creditors, who will only get paid after more senior creditors are paid in full.
Read the entire article at Reuters
More coverage: ValueWalk and The Wall Street Journal
Man Group Buys UK Asset Manager NewSmith
Man Group, the world’s largest listed hedge fund firm, has snapped up Mayfair-based asset manager NewSmith, continuing its recent acquisition spree.
NewSmith, which is 40% owned by Japanese asset management giant Sumitomo Mitsui Trust Bank, was founded in 2003 and has around $1bn (£650m) of assets under management, mainly in European and Japanese equities. The remaining 60% is owned by its founders and senior staff.
It has offices in London and Tokyo with four fund management teams investing in British, European, global and Japanese equities. These will sit in Man Group’s GLG division, which focuses on investments outside Man Group’s flagship AHL funds.
Man Group is effectively buying the entire business, except a small private equity division which is currently being run down.
Read the entire article at The Telegraph
More coverage: The Financial Times and HedgeWeek