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Seeking Alpha - If someone was asked to name a fund in the global macro game, undoubtedly Tudor Investment Corp or Moore Capital Management would be among the most frequent responses. The global macro strategy has fared well in the world of hedge funds. Paul Tudor Jones’ Tudor Investment Corp has earned an annualized return of greater than 20% over the span of two decades.
Louis Bacon’s of Moore Capital Management shares the same accolade. And, while they are both down this year, they have fared much better relative to many of their peers and the market indexes in general. Tudor’s flagship fund finds itself -5% for the year, while Moore was -2.9% year-to-date through November as we noted in our November hedge fund performance update.
But, in a never-ending quest for outperformance, Tudor and Bacon want more. And, in order to accomplish that, they see it fit to return to their roots.
Globe and Mail - Hedge fund manager Eric Sprott heaps praise on his "defensive team" for helping him survive this bear market.
While some of his peers have cratered amid this year’s stock market crash, his short positions have kept him well ahead of his benchmark index.
For the first 11 months of this year, the returns of Sprott Bull/Bear RSP and Sprott Hedge LP I and II range from an 8.5-per-cent gain to a 4.5-per-cent loss compared with the S&P/TSX composite’s sharp 33-per-cent slide.
"The reason we started our first Canadian hedge fund in 2000 was because we foresaw this very, very difficult market," recalls Mr. Sprott, also chief executive officer of Toronto-based Sprott Inc.
New York Post - Fed up with misbehavior in the hedge-fund industry, respected hedge-fund investor Sandra Manzke is fighting back.
A pioneer in hedge-fund investing and best known for founding Tremont Capital Management, Manzke sent an angry missive to hundreds of her peers earlier this week, calling on them to join together to push for reform in the $1.5 trillion industry.
"I am appalled and disgusted by the activities of a number of hedge-fund managers," said the letter, which raises a fist against what Manzke sees as a general degradation of ethics in the industry.
Bloomberg - BNP Paribas SA, France’s biggest bank, won prime brokerage business in Asia with hedge fund CQS (U.K.) LLP as it seeks to lure clients in the region from rivals.
The new contract with CQS, a London-based hedge fund manager that has an office in Hong Kong and oversees about $7.5 billion, adds to BNP Paribas’s existing relationships with major hedge funds in the region, according to Talbot Stark, global head of BNP Paribas hedge fund relationships. He declined to name other existing clients.
“We have prime brokerage relationships with three or four of the market leaders in Asia that are outperforming their peers and look to be longer-term survivors in the Asian hedge fund market,” Stark, 43, said in a telephone interview yesterday. “We’re in discussions with several other key players that are making decisions to change their prime brokerage providers and are seeking alternative providers that are established and committed to the region.”
Reuters - Hedge fund manager PMA said on Wednesday its flagship macro vehicle focusing on foreign exchange and interest rate markets returned 4.83 percent in October, even as the global financial crisis ravaged many of its peers.
The unit of SPARX Group Co Ltd, Japan’s largest listed hedge fund manager, said the PMA Harvester Fund managed by macro-strategy chief investment officer Shun Hong Liu had now returned 21.33 percent year-to-date.
"Given that we anticipate that market conditions will remain difficult in the near-term, our strategy will be to remain light and nimble in our positions," the CIO said in a statement.
InvestorDaily- While Australian superannuation funds and institutional investors have discovered hedge funds, their participation is not to the extent of most of their developed market peers.
But the current market downturn may change that behaviour, because the juicy returns they had become used to from the traditional asset classes have disappeared for the moment.
"The industry super funds were early adopters of hedge funds, but for most other dealer groups and institutions, they didn’t have the imperative in 2003-2007 to look fully into alternative assets, because traditional ones were motoring along so well," Lonsec head of investment consulting Amanda Gillespie says.
"When you’ve got investors and advisers looking at the phenomenal returns we’ve seen in traditional markets - up until the last 12 months - it’s been a really hard sell to talk them into making really big allocations to alternatives in that environment. But I think that more of them are ready to look at alternative investment categories now."
BusinessWeek- Lee Shyan-Yuan, one of several commissioners at Taiwan’s Financial Supervisory Commission (FSC), believes attracting hedge funds to the market would be a smart move.
He is courting hedge funds to invest in Taiwan and raise money from investors in that market. That’s a bold move from a regulator, considering that many of his peers in other markets in Asia have not yet fully embraced hedge funds; some even still consider them the enemy.
Hedge funds, after all, have been blamed—justifiably or not—at least in part for some of the difficult periods in Asia’s financial markets, most notably the regional financial crisis beginning in 1997.