Top Hedge Fund News Wrap: 11/5-11/9
Damn the Returns, Full Fees Ahead! Hedge funds’ performance is down again. Reports have funds at a loss of 1.9% in the month of October, with the average fund down 0.5% due to a 2% loss in the S&P 500. This brings the total gains for the year to 1.1% compared to the 13% gain for equities worldwide. To be sure, even with the dip in returns, manager pay is up. According to news sources and the Glocap 2013 Hedge Fund Compensation Report, employees in marketing, compliance and senior investment roles in money-making funds have gotten the largest pay raises this year. “…(A) mid-sized hedge fund with middling performance can expect to be paid about $1.3 million this year,” Glocap said. (Hopefully, one of these days, I will have a chance to work my way to the middling.)
A Tempestuous Love Affair Between Hedge Funds and Oil May Be Cooling. From bull to bear, hedge funds and their managers have reduced their bets on Brent crude to the lowest level in nearly three months. Bloomberg reports bearish bets outnumbered bullish bet by 90,036 compared to the 76,788 lots the week before. According to the US Commodity Futures Trading Commission (CFTC), hedge funds cut their net long position in WTI-related futures and options by 106 million between 9/18-10/30.
News in Brief
“Fiscal Cliff” impact may hurt hedge fund FX flows the most.
Matrix Group Ltd. is liquidating its hedge fund and investment-banking divisions after European debt crisis hurt their performances.
Financial Services Authority (FSA) set to take action against a large number of fund managers in London.
SEC charges Walter Morales of Commonwealth Advisors with alleged mortgage fraud.
Mans Larsson, former London head of Canyon Capital Advisors, plans to launch a credit-focused fund early next year.
Cantab Capital Partners closes to new investors.
Eddie Lampert, chairman of Sears Holdings sells AutoNation.
Blackstone leads hedge funds attracting bond-rally bears.
Billionaire Julian Robertson, ranked 170 on Forbes 400 list of richest Americans will back a new partnership, Tiger Pacific Capital LP, which will focus on investing in Asian equities.