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Telegraph.co.uk - 3i Infrastructure, which is 43pc owned by private equity group 3i, said it had exploited an "anomaly in the market" and added it was keen to take part in any purchase of Gatwick, after BAA was told it must sell two of its three London airports.
The fund has bought debt issued by Ireland’s Viridian, Thames Water and Telediffusion de France, adding that the purchases offered higher than equity returns at lower risk.
Michael Queen, a 3i managing partner, said: "Hedge funds are receiving redemption notices and having to liquidate their portfolios. Because capital is scarce at the moment, the prices at which they’re [selling] are clearly at a discount to fair value.
Telegraph.co.uk - Mr Cameron said that his shadow chancellor George Osborne had explained "very clearly" all the meetings and conversations he had had about a possible £50,000 donation from Oleg Deripaska and called on Mr Mandelson to produce a similar list of encounters.
Mr Osborne has been left fighting for his political life after the revelation that he discussed a substantial donation to the Conservative Party from Mr Deripaska following four meetings between him and the aluminium tycoon, who is banned from the US, in Corfu.
Nat Rothschild, a hedge fund tycoon who was host to Mr Osborne at his family’s villa on the island, alleged that Mr Deripaska offered to donate money to the Tories despite not being eligible to vote in this country.
Telegraph.co.uk - The City-based European equity fund, which had $2.5bn under management at its peak, is now down over 63pc so far this year, leaving investors fearful it will be forced to close.
The “blow-up” is a mighty fall for the founders, Ivor Farman and Scott Pagel, who famously paid themselves £100m each over two years after producing stellar returns to their investors.
The pay deals placed the pair in the ranks of the UK’s 800 wealthiest people and among the 30 wealthiest hedge fund managers in the country.
Gradient made a net investment return for its investors of 56pc in 2005 and 47pc in 2006. In 2007 the founders paid themselves £109m, and £94m the year before that, according to accounts filed at Companies House.
Telegraph.co.uk - EU data shows that Philip Falcone, the US hedge fund baron who led the assault on HBOS, has sold short €138m (£108m) of Banco Popular’s shares, or 1.65pc of the total float, through his fund Harbinger Capital.
He has short bets of €208m on Santander and €185m on BBVA. Blue Ridge Capital has targeted Bankinter and Popular. Calypso Capital Management, High Side Capital, Landsdowne, and Belgium’s Fortelus have all joined the hunt.
The Madrid positions are a way for funds to continue shorting banks in Britain, where Santander is now a key player after taking over Abbey National, Alliance & Leicester and Bradford & Bingley.
Britain’s Financial Services Authority has suspended short selling of bank stocks, but Spain has not done so.
Telegraph.co.uk - A move by US and European central banks, as well as by central banks in China, Taiwan, Hong Kong, Australia and South Korea, to slash borrowing costs has failed to reassure investors.
"It’s impossible to predict the bottom, and technical analysis is meaningless as panic and fear overwhelm the markets," said Jang Huh, at Prudential Asset Management in Seoul.
Japan’s Nikkei stock index fell 10pc, the biggest loss since “Black Monday” in October 1987 and it third biggest loss ever. The index, which closed down 881.06 points at 8,276.43, has lost more than 24pc over the past week.
Prime Minister Taro Aso warned that the slump could have real effects on Asia’s largest economy. The share price fall “has reached a point where it affects the real economy and fund raising,” he told reporters.
All indications are that European markets will open sharply lower.
Telegraph.co.uk - In the biggest-ever round of redemptions, funds around the world are braced to give back between 10pc and 50pc of their assets under management.
Hedge funds were faced with a slew of redemption notices at the start of the quarter, but investors were prepared not to withdraw their money if returns improved, according to one prime broker. He said many would now be forced to close.
None of the strategies used by hedge funds produced a positive return in September. According to the Dow Jones Hedge Fund Indexes , equity market-neutral funds, which often try to manage risk by shorting a stock in one sector and going long on one if its competitors, have fallen 1.85pc this month, while convertible arbitrage securities have dropped 7.96pc and distressed securities by 7.34pc. That compares with a 9pc decline by the FTSE 100. Hedge fund of funds, which are designed to spread risk, are expected to face the biggest redemptions.
Telegraph.co.uk - Mark McGoldrick, a former Goldman Sachs trader whose track record earned him the nickname ‘Goldfinger’ during his career with the Wall Street bank, is making a comeback with a new $5bn (£2.8bn) fund.
McGoldrick, who famously earned $70m a year ($200,000 a day), but resigned because it was not enough, has asked his old firm to raise money for a super hedge fund that will concentrate on special situations.
While at Goldman Sachs, McGoldrick was head of distressed and special situations investing in Asia. He co-founded and built the firm’s secretive ’special-situations group’, Goldman’s elite and opaque money-making machine, which buys and sells eclectic assets including British power plants, Japanese golf courses and Thai auto loans.
Telegraph.co.uk - BAA is in urgent talks with a hedge fund client of investment bank UBS that is threatening to scupper the airport operator’s proposed £7.65bn refinancing.
As today’s deadline for bondholders to vote through a crucial part of the deal nears, the hedge fund was last night still refusing to accept BAA’s terms for transferring more than £225m of bonds into a new financing structure.
BAA is seeking agreement from holders of £4.7bn of bonds to "migrate" their debt into a new investment-grade, ring-fenced structure backed by Heathrow, Gatwick and Stansted airports. Only if the bondholders agree to such "migration" can BAA begin to draw the £7.65bn of fresh loans put in place by a nine-strong banking syndicate.
Telegraph.co.uk- Hedge funds have suffered major losses after wrongly betting that market inflation expectations would fall, the Bank of England has said.
The Bank reported that many hedge funds had been badly burnt after market expectations for inflation rose to a new high, most recently hitting 4pc for the first time since 1997.
So significant were the funds’ bets that they actually distorted the so-called “breakevens” rate – which represents the average level of inflation investors expect over a certain period – pushing it up sharply in the months up to May.