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WSJ – Korea Investment Corp., South Korea’s US$30 billion sovereign wealth fund, is close to investing US$200 million into two funds that invest in distressed real estate, Kyungoh Kook, director of KIC’s alternative investment team, said in an interview Thursday.
“Do we see opportunities in distressed transactions? Yes, there are good investments in the U.S. and Europe, but we are cautious because we don’t have much expertise” in that area, he said.
Separately, Kook said that KIC is also looking to invest more in natural resources and commodities, sectors that serve as a good hedge against inflation. The sovereign wealth fund is interested in making direct investments in the space, ranging between $100 million to $500 million, he said.
New York (HedgeCo.net) – Hedge Funds Care is holding its fifth London black tie event in Whitehall, London, on 3 December 2009. Esther Rantzen CBE, veteran journalist and TV presenter as well as founder of ChildLine has agreed to become Patron of the charity and will be attending the December event.
The fifth annual fundraising gala will include a live auction conducted by Lord Jeffrey Archer. Items on auction will include a hand-signed Salvador Dali etching donated by the Broad Gallery and a dinner for 10 cooked by Chef Tom Aiken in your home. The evening will also feature a spectacular silent auction of limited edition works of art by some of the 20th century’s most celebrated artists, including Picasso, Dali, Matisse and Chagall.
“We are very proud to be in the position to hold a second fundraising event in 2009, despite the less favourable conditions for philanthropy over the past year.” Robert Mirsky, Chairman, Hedge Funds Care UK, said, “Our support from the hedge fund industry continues to grow and allows us to help prevent and treat child abuse in the UK.”
Since it was established in 2006, the UK chapter of Hedge Funds Care has raised over US$1.4 million through its three annual fundraising events and a summer event held earlier this year. To date, Hedge Funds Care UK has pledged funds to numerous charities, all focusing on improving the lives of children and families that have suffered the trauma of abuse. Recent beneficiaries include: Barnado’s (Young Women’s Service), CSV(Volunteers in Child Protection) and Family Action (Building Bridges Newham).
Hedge Funds Care was founded in 1998 with the mission of raising funds to support activities focused on the prevention and treatment of child abuse and neglect. Funds are raised through Open Your Heart to the Children benefits in the United States, Canada, Cayman Islands and the UK. Hedge Funds Care UK is registered with the Charities Commission in the United Kingdom.
The Independant – Insiders at the Securities and Exchange Commission, the Wall Street watchdog, and at the Justice Department say that there are more civil charges and more criminal prosecutions in the offing. Hedge fund managers need to learn to spot the difference between scouring every possible source for trading ideas, and out-and-out insider dealing, and they had better learn fast.
The question now is whether the hedge fund industry is hooked on insider trading, whether the Galleon case is a singular one starring some really rotten apples – or whether, as Mr Rajaratnam was insisting to his staff and investors yesterday, he has been unfairly accused.
It was only a matter of time until Mr Rajaratnam or someone like him ended up in the dock. It is difficult to imagine he will be the last.
Reuters – U.S. tax authorities have advised staff in New York to pursue legal cases against hedge funds and companies that avoided taxes through loans that originated in the United States but are approved offshore. The Internal Revenue Service, in a directive from associate chief counsel for international Steven Musher, advised New York IRS field director Kathy Robbins to …
MarketWatch – Harbinger Capital, a big hedge-fund firm run by Philip Falcone, is selling 20 million shares of power company Calpine Corp.
Harbinger Capital Partners Master Fund I Ltd. is selling the stock in a public secondary offering underwritten by Morgan Stanley, Calpine said in a statement late Tuesday.
Harbinger plans to grant Morgan Stanley the option to buy another three million Calpine shares. The power company said it won’t get any of the proceeds from the sale.
Tuscaloosa News – A committee of University of Alabama trustees voted to pull some investments from stocks, instead buying more stable U.S. and international bonds in an effort to avoid potential drops in the stock market.
International bonds will be bought as well as domestic to hedge against the deflating dollar, said Thomas Gale, investment officer for the system.
“In light of the fact that the stock market is no longer cheap, we are reducing our stock exposure slightly, thus reducing the volatility of the endowment fund,” Gale said after the meeting.
