Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
The Guardian – Hedge fund manager Man has moved to the top of the FTSE 100 risers, as traders heard talk it may dispose of its remaining stake in broker MF Global.
Man spun off the brokerage in July 2007 by means of a flotation in the US, but retained an 18.5% stake, worth around $130m. The suggestion it might now be looking to sell this has helped send Man shares 17.5p higher to 283.25p. In its latest annual report it classifies the residual MF shareholding as "available-for-sale financial assets."
Times Online – Britain’s leading share index stayed in negative territory in mid-morning trading after failing to shake off concern about rising US debt and growing fears that General Motors will file for bankruptcy protection by Monday.
The FTSE 100 was down 42.78 points at 4,373.45 by mid-morning, although the pound, which yesterday hit a seven-month high of $1.60, made up earlier overnight losses to trade at $1.5935.
West Palm Beach (HedgeCo.net) – Despite the credit crunch, sixth formers at Sunningdale Preparatory School, near Ascot, Berkshire, have entered funds into a virtual trading competition… and their early efforts are beating the market. Far from being discouraged by the doom and gloom reported on a daily basis, their interest has been ignited.
William Brooks, Deputy Headmaster, is impressed. "The boys are enthused; they have opened accounts and are trading against each other and the staff. I recently showed some prospective parents around and they could not believe their eyes… two boys discussing what limit to place on their newly acquired Allied Irish stock." In the past, schools would introduce pupils to share dealing by referring to price lists in the daily newspapers, and tallying results by hand. But the internet has brought realistic trading simulations that bring real time reporting, automated paper trails and full historical records, all at the click of a button.
Brooks continued, "We looked at several alternatives but chose Stockopedia as it enables us to research, discuss and trade all from the same website. Using the site allows the boys to better understand market timing without risking real money, while the online community has helped to generate trading ideas."
Before the markets resumed their recent plunge to new lows, the Sunningdale sixth formers traded a rally in banking stocks and managed to exit profitably. Overall, the Sunningdale funds have outperformed the FTSE benchmark by 8.1% over the last month. At the end of March, the 2009 Stockopedia Challenge officially launches and both the boys and the staff are well placed for the prizes on offer, including flights to visit Wall Street.
Edward Croft, Managing Director of Stockopedia, is pleasantly surprised by the results. "Sunningdale’s performance to date has been impressive and one of their boys, Archie Bannister, 13, has been this week’s top performer. While the FTSE 100 has dropped 15% recently, his fund has made positive gains – making up 10% in the last week alone… it’s a very promising start." Croft is pleased that young people are using the site to learn to become more financially autonomous. "Recent scandals, like the Madoff affair, have shown that blindly trusting market professionals can be extremely dangerous – so it’s reassuring to see schools encourage independent thinking and analysis in this area at such an early age".
The Headmaster, Tom Dawson, is "delighted that the boys are filling in some of their free time in this way. My only concern is that they are proving far better investors than I am!"
Financial Times – The London market’s new year bounce continued into a fifth session, but Tate & Lyle missed the trend.
Tate lost 8.5 per cent to 386¼p amid speculation that Harbinger, its second-biggest shareholder, might have to sell to meet redemptions.
The US hedge fund run by Philip Falcone cut its holding from 19 per cent to 13.9 per cent through December.
Tate shares were also hit by concerns that the sweetener industry had failed to push through price rises. Supply contracts for 2009 have been fixed at 1-2 cents above last year’s levels, but below the 3½-cent increase requested, according to a trade press report.
Tate shares rallied 5.5 per cent last week, helped by talk of a Russian investor looking to buy a 10 per cent stake but had struggled to find a broker willing to take the trade.
The FTSE 100 closed up 0.4 per cent, rising 17.85 points to a two-month high of 4579.64. Activity remained at holiday levels, however, with just over 840m blue-chip shares changing hands.
