Archive for December, 2010

Cerberus SPV Makes High Return

December 30, 2010

Chidem Kurdas

Long-suffering clients of Stephen Feinberg’s Cerberus Capital Management received good news this fall—an early holiday gift, you might say.  It concerned the special-purpose vehicle set up to contain assets that became toxic and just about unsellable in 2008-2009.  (more…)

Investors May Reduce Equity Share

December 22, 2010

Long/short equity funds look less attractive as stock markets continue their steep ascent from the depths of the 2008-2009 slump.  It may sound paradoxical, but a very strong market can be a disadvantage for long/short strategies.  (more…)

Paulson Keeps Cachet

December 20, 2010

Investors that redeemed from Paulson & Co. remain interested in putting money into other funds managed by the firm. This may be because many customers took their capital out with a hefty gain, despite losses in the first eight months of this year. (more…)

Traders Face Transparency

December 16, 2010

Chidem Kurdas

Goldman Sachs, among others, has suggested that the Securities and Exchange Commission require stock exchanges to disclose more information. This is one of the regulatory changes proposed in response to the May 6th “Flash Crash”. What does it mean for funds and other active traders? (more…)

Harvard Joins Gold Rush

December 15, 2010

Endowments have joined hedge funds in buying gold and silver stocks, attracted to some of the same producers. Whether these big buyers will hold long-term or bail out in expectation of a correction in booming precious metals is a key question for market participants. (more…)

Asia Focus Lifts Tiger Cub

December 14, 2010

Wanting to get the benefit of Asia’s fast-growing economies, institutions seek managers experienced in this area. One fund that’s received money from large investors is Asian Century Quest. (more…)

Individual Commodities Diverge Widely

December 10, 2010

Chidem Kurdas

Barclays Capital finds that investors are increasingly moving to differentiated commodity strategies, away from the broad-based index exposures that many previously favored. The outlook is greater diversity between markets, says Kevin Norrish of Barclays Capital. (more…)

Distressed Credit Woes Influence Investors

December 8, 2010

Once burnt, twice shy, goes an old adage. Bad experience with distressed credit investments – considered very promising at the start of the real estate downturn – has put fund clients off this strategy. (more…)

Tudor Attracts as Macro Rises

December 6, 2010

Chidem Kurdas

Two years ago distressed securities investing looked promising. No longer. Investors are moving to other strategies, in particular global macro. But they don’t want new macro managers—they want well-established names that have been around for decades, like Paul Tudor Jones.  (more…)

Cooperman: KKR, Sallie Mae, Gold

December 2, 2010

Omega Advisors chief Leon Cooperman must be very confident about the private equity firm Kohlberg Kravis Roberts & Co. He’s bought it in two different ways. (more…)