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New York (HedgeCo.net) – $351.7 billion US investment manager, Federated Investors, Inc., is acquiring Prime Rate Capital Management from UK hedge fund Matrix Group Limited.
Prime Rate Capital Management’s family of UCITS hedge funds include: Prime Rate Sterling Liquidity Fund, Prime Rate Euro Liquidity Fund and Prime Rate US Dollar Liquidity Fund. Together the funds are estimated to be worth approximately GBP 1.5 billion ($2.4 billion.)
“The agreement will incorporate Prime Rate Capital’s experienced team, insightful processes and excellence in liquidity management into Federated’s money market business – with euro, sterling and dollar-denominated UCITS products positioning us for future growth,” said Gordon J. Ceresino, president of Federated International Management Limited. “After adding an additional sales person in our Frankfurtoffice earlier this year, Federated continues to seek opportunities to expand our global business in Europeand around the world.”
With $189 billion in AAA-rated money market funds, Federated is the second-largest U.S. manager of money funds of the highest credit quality. Federated has 12% of the U.S. market share of AAA-rated money market funds, according to iMoneyNet.
“We opted to join Federated because of the company’s reputation as a premier global liquidity manager since the 1970s,” said Dennis Gepp, managing director and chief investment officer of Prime Rate Capital. “Our clients and shareholders in the funds can be confident in Federated’s stewardship and credit process, as it is one of the world’s largest and most experienced managers of money market products.”
New York (HedgeCo.net) – In the upcoming issue of The New Yorker, writer George Packer profiles hedge fund and venture-capital entrepreneur Peter Thiel. The article “No Death, No Taxes” comes out on November 28th.
His venture-capital firm, Founders Fund, has an online manifesto about the future that begins with a complaint: “We wanted flying cars, instead we got 140 characters.” Thiel believes that this failure of imagination explains many of the country’s problems—from the collapse in manufacturing to wage stagnation to the swelling of the financial sector. As he puts it, “You have dizzying change where there’s no progress.”
His hedge fund, Clarium Capital Management, “became one of the meteors of the hedge-fund world,” Packer writes.
Thiel also founded PayPal, which he and his partners sold to eBay for $1.5 billion, he also gave Mark Zuckerberg a half-million-dollar loan, the first outside investment in Facebook, in the summer of 2004—a loan that Thiel later converted into a seven-per-cent ownership stake and a seat on the board.
Packer writes, “The information age has made Thiel rich, but it has also been a disappointment to him.” The creation of virtual worlds turns out to be no substitute for advances in the physical world.” “The Internet—I think it’s a net plus, but not a big one,” Thiel tells Packer.
Twitter has a lot of users, but it doesn’t employ that many Americans: “Five hundred people will have job security for the next decade, but how much value does it create for the entire economy?” Thiel’s questioning of the Internet’s significance does not, however, come from an indifference to technology. “He’s enraptured with it,” Packer writes. “Indeed, his main lament is that America… has lost its belief in the future. Thiel thinks that Americans who are beguiled by mere gadgetry have forgotten how expansive technological change can be.”
He believes that education is the next bubble in the U.S. economy, and dislikes the idea of using college to find an intellectual focus; above all, because “a college education teaches nothing about entrepreneurship,” Packer writes. “Thiel thinks that young people—especially the most talented ones—should establish a plan for their lives early, and he favors one plan in particular: starting a technology company.”
Last September, Thiel and Luke Nosek—Thiel’s friend and a partner at Founders Fund—came up with the idea of giving hundred-thousand-dollar fellowships to brilliant young people who would leave college and launch their own startups. The Thiel Fellowships “would help ambitious young talents change the world before they could be numbed by the establishment,” Packer writes.
Thiel has also poured money into futuristic projects such as artificial intelligence, space travel, life extension, and seasteading—the establishment of floating city-states on the high seas. He says, however, that even though he ideologically believes “that it’s unhealthy if society is totalitarian or dominates everything, if I had been libertarian in the most narrow, Ayn Rand-type way, I would never have invested in Facebook.”
He hasn’t backed a Presidential candidate for 2012 yet; he is spending his time and money building “the machinery of freedom” outside politics, so that, Packer writes, “technology will win the race.”
Thiel tells Packer that he is “weirdly hopeful…… There is a very cathartic crisis that’s gone on, and it’s not clear where it’s going to go. But at least everyone knows things are rotten. We’re in a much better place than when things were rotten and everyone thought things were great.”
New York (HedgeCo.net) - Hedge fund giant Blackstone has completed its acquisition of Emdeon Inc, a healthcare revenue and payment cycle management provider, in a transaction valued at approximately $3.0 billion.
“We are excited to open a new chapter in the evolution of Emdeon. We are enthusiastic about our future as we continue to evolve our solutions to make healthcare more efficient,” said George Lazenby, chief executive officer for Emdeon. “We are also happy to be working with Blackstone and continuing our relationship with Hellman & Friedman, each of whom has a very strong understanding of our marketplace and a tremendous track record of success in partnering with companies and their management teams.”
The transaction was approved by Emdeon stockholders at a special meeting held November 1, 2011. Morgan Stanley acted as lead financial advisor and UBS Investment Bank acted as co-financial advisor to Emdeon’s Board of Directors.
New York (HedgeCo.net) – Hedge fund investor Nanostart’s holding Nanosys Inc. has received funds from the U.S. Department of Energy (DOE), as part of the DOE’s larger mission to accelerate the development and deployment of advanced vehicle technologies through targeted programs aimed at increasing vehicle efficiency. The new innovations will enable Electric Vehicles (EVs) to travel 300 miles on a single charge.
“We are honored the DOE has selected Nanosys for this grant,” said Jason Hartlove, president and CEO of Nanosys. “The future of a clean energy economy depends on increased adoption of electric and hybrid electric (PHEV) vehicles. Until such vehicles are able to achieve substantial operating range on a single charge with the economics of combustion vehicles, acceptance will be limited to early adopters. The commercialization of architected material solutions like SiNANOdeTM provide the breakthroughs needed to progress on the path to achieving those goals.”
The agency has set a target for bringing the cost of lithium-ion batteries down to $250/kWh and increasing capacity to 300 miles per charge for the next generation of EVs.
“The Department of Energy is investing in new advanced technologies that will significantly improve vehicle fuel economy, save consumers money, and create skilled jobs for Americans,” said U.S. Energy Secretary Steven Chu in a DOE press release. “Investments in the next generation of autos will strengthen our economy and lead to a more fuel-efficient, clean energy future.”
In addition to EVs, Nanosys is currently working with domestic and international battery manufacturers to improve lithium-ion battery capacity using SiNANOdeTM in batteries for laptops and tablets, smart phones and other electronic devices.
Editing By Alex Akesson
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New York (HedgeCo.net) – Texas hedge fund adviser Highland Capital Management and it’s affiliate, Acis Capital Management, L.P., is now the successor Collateral Manager of Hewett’s Island CLO I-R Ltd, with approximately $243 million of assets under management.
Alternative investment specialist, Acis, assumed the role as Hewett’s collateral manager after a majority of the subordinated noteholders nominated the firm for the role.
“We continue to be strong proponents of the collateralized loan obligations (CLO) markets,” said Josh Terry, Portfolio Manager at Acis. “We are honored by our selection as manager of this CLO and believe we are well positioned to improve its credit quality and performance.”
The transaction, completed July 18, raises Highland and its affiliates’ total CLO assets under management to $17.5 billion, comprised of 27 different CLO vehicles.
Investopedia explains Collateralized Loan Obligation – CLO
Collateralized loan obligations are the same as collateralized mortgage obligations (CMOs) except for the assets securing the obligation. CLOs allow banks to reduce regulatory capital requirements by selling large portions of their commercial loan portfolios to international markets, reducing the risks associated with lending.
New York (HedgeCo.net) – A group of three hedge fund managers, Paul E. Singer, a “top-tier Republican donor,” Steven A. Cohen and Clifford S. Asness have decided to back, financially and otherwise, the establishment of same-sex marriage in the state of New York, the New York Times reported.
Some comments in the Times include:
- “An unexpected source: a group of conservative financiers and wealthy donors to the Republican Party, most of whom are known for bankrolling right-leaning candidates and causes.” The Times reported.
- “I’m a pretty straight-down-the-line small-government guy,” Asness, a self-described libertarian, told the New York paper. “This is an issue of basic freedom,” he said.
- “We believe in social justice for all Americans,” said Cohen, who runs SAC Capital Advisers and is a frequent fundraiser for Republicans.
- “I think it is important in particular for Republicans to know this is a bipartisan issue,” said hedge fund manager Daniel Loeb, who has donated hundreds of thousands of dollars to the cause. “If they’re Republican, they will not be abandoned by the party for supporting this. On the contrary, I think they will find that there is a whole new world of people who will support them on an ongoing basis if they support this cause.”
- “The involvement of Mr. Singer is the most striking,” the Times reported, “given his devotion to conservative candidates and philanthropy: He is chairman of the Manhattan Institute, a right-leaning research group, and one of the most generous Republican donors in the country. But he also has a personal stake in the issue: he has a gay son who married his partner in Massachusetts, where same-sex marriage is legal.”
New York Mayor Michael Bloomberg, a billionaire businessman and philanthropist, is also planning a fundraiser for the cause at his Upper East Side town house and will be giving $100,000 of his own money, as well as lobbying lawmakers at the state capital and giving a speech on the issue.
The donations from the Republican donors total about two-thirds of the same-sex marriage coalition’s fund raising. On Sunday, supporters and opponents of same-sex marriage held competing rallies in Manhattan and the Bronx, the New American reported.
New York (HedgeCo.net) – Investment management giant, Northern Trust, with over $662.2 billion in assets under management, has acquired Omnium LLC, a hedge fund administrator with approximately $70 billion in assets.
Omnium’s staff will be integrated into Northern Trust’s Corporate & Institutional Services business unit as Northern Trust Hedge Fund Services, LLC., offering scalable technology and expertise to hedge funds and large institutional investors with complex portfolios.
“In today’s markets, asset managers and institutional investors demand high performance, greater transparency, and outstanding technology from their administrator,” Northern Trust Chairman and Chief Executive Officer Frederick H. Waddell said. “This acquisition brings together the best in hedge fund administration expertise, along with Northern Trust’s robust global custody capabilities and our highly respected client focus. The result is a unique opportunity to scale a world-class business.”
The acquisition, subject to regulatory approval, is expected to close in the third quarter of 2011.
New York (HedgeCo.net) – Investment management firm, BNY Mellon, is in the process of acquiring Chicago-based Talon Asset Management’s wealth management operations, which have more than $800 million in assets under management. Talon is one of the region’s premier independent investment managers, the team did not include the firm’s private equity and hedge fund businesses .
“Both BNY Mellon and Talon share a strong commitment to client service and satisfaction and to delivering trusted guidance to help clients achieve their financial goals,” said BNY Mellon Wealth Management CEO Lawrence Hughes. “BNY Mellon Wealth Management had targeted Chicago as part of its national and global expansion strategy. This transaction marks a significant step in the company’s growth in the region and will enable us to offer a whole new level of service to wealthy Chicago investors.”
Upon completion of the transaction, Talon staff will become part of BNY Mellon and senior Talon principals Terry Diamond, Alan Wilson and Edwin Ruthman will assume leadership roles in the Chicago office. “This combination will enable us to greatly strengthen and diversify the products and services we deliver to our clients,” said Diamond. “And our clients will continue to benefit from the very best service and expertise that our team has delivered to them over the past 27 years.”
While the pending acquisition gives BNY Mellon Wealth Management increased access to the Chicago market, BNY Mellon already employs nearly 450 people in the metropolitan area in an array of business units including asset servicing and treasury services.
New York (HedgeCo.net) – FrontFour Master Fund, Ltd., an affiliate of hedge fund investor FrontFour Capital Group LLC., has written a letter to the stockholders of Fisher Communications, Inc., criticizing the current board of directors and nominating new candidates. Fisher’s stock has recently declined by 48%, representing a total stockholder loss of $173 million.
“FrontFour is compelled to run this election contest because after having one representative on the Board for two years, we were unable to get the Board to take the necessary steps to improve stockholder value.” the activist hedge fund investor, who is also a long-term stockholder of Fisher, said in the letter, “We are seeking your support to elect highly qualified candidates to the Board of Directors of Fisher at its 2011 Annual Meeting of Stockholders.”
FrontFour has nominated John F. Powers, Joseph J. Troy, Matthew Goldfarb and Stephen Loukas as qualified director candidates.
“If elected, our nominees will seek to have the Board carry out an operational and strategic analysis of all alternatives to maximize stockholder value, including ways to monetize Fisher Plaza.” FrontFour concluded.
New York (HedgeCo.net) – The Highland Companies, backed by Boston-based hedge fund Baupost Group, is seeing local opposition to its new Canadian mega-quarry plans.
The group of protesters yesterday passed the half-way mark of their 5 day, 119 kilometer march. The group of residents, farmers and representatives have been walking with signs and flags saying “Stop the Quarry,” since a rally at Queen’s Park in Toronto last Friday.
The proposed site is located in prime farmland in Ontario’s potato-growing region known for a rare type of soil that is particularly suited to potato cultivation, the locals say. If allowed to proceed it would be the second-largest US owned quarry.
“It will destroy productive farmland and threaten the headwaters of three important rivers – the Grand, the Nottawasaga and the Pine- water sources for one million people.” Carl Cosack, a local cattle and horse rancher, said.
“200 feet below the water table is deeper than Niagara Falls and will require the extraction of 600 million litres of water per day. They claim it will not have a negative impact, it’s simply not credible,” said Cosack.
The local farmers plan to finish the march with a rally on Tuesday afternoon at a potato farm next to the proposed quarry site on Highway 124.
“The (company) application runs more than 3,100 pages, and took five years and 20 consulting firms to create,” says area cattle rancher and horse trainer Carl Cosack, a rally participant. “The public was given 45 days to respond.”
Under Ontario law, an environmental assessment is not required for a mega-quarry.
New York (HedgeCo.net) – NY-based Medley Capital LLC has announced the acquisition of credit hedge fund manager Viathon Capital LP and all its related entities.
“This transaction combines the analytical and credit strengths of the two organizations.” Brook Taube, Managing Partner at Medley said.
“Having known the Medley team for some time, I am excited about the opportunity to leverage our combined resources and to grow the firm’s investment management and advisory franchise,” Robert Comizio, Viathon founder, added.
Medley is a U.S. registered investment adviser with $1.4 billion of assets under management in private investment funds and hedge funds
Predominantly focused on companies in North America and Europe, Viathon invests in fundamental and event driven opportunities across the credit spectrum.
New York (HedgeCo.net) – Hedge fund giant Man Group plc., yesterday entered into an agreement to take full ownership through its US subsidiaries of Ore Hill Partners LLC and Ore Hill Partners Capital Management LLC (together, Ore Hill).
“We are extremely excited to add Ore Hill to the GLG platform.” Raffaele Costa, Man’s Head of Sales for North America and Europe, said, “This solidifies our position as a leading credit manager in addition to our already strong equity strategies. Ore Hill is a well established manager, with a strong track record over nine years and they will spearhead our expansion into US credit.”
Man’s relationship with Ore Hill dates from 2008, when it bought a stake of approximately 50% in Ore Hill, a credit-focused, event-driven hedge fund and structured product manager based in New York. Ore Hill will remain as an investment adviser but the operations will be integrated into and managed as part of GLG, Man’s discretionary investment management platform.
Ore Hill manages a series of hedge funds with funds under management of approximately $800 million, of which previously Man has consolidated 50%. Upon completion, these funds will be fully consolidated into Man’s funds under management. Ore Hill also manages a $1.1 billion structured product.
New York (HedgeCo.net) – $351.7 billion US investment manager, Federated Investors, Inc., is acquiring Prime Rate Capital Management from UK hedge fund Matrix Group Limited.
