Bloomberg - Money manager John Paulson has started buying beaten-up mortgage bonds as hedge funds stumbled for a fifth straight month.
Paulson, 52, is purchasing debt backed by home loans after generating sixfold returns last year with help from bets against subprime mortgages, investors in his funds said. Paulson’s Advantage Plus fund rose 29 percent this […]

Bloomberg - Moore Capital Management LLC, founded by Louis Bacon almost two decades ago, tapped Greg Coffey, former GLG Partners Inc.’s top-performing money manager, to be co-chief investment officer of Moore’s European business.
Coffey, 37, will join London-based Moore Europe Capital Management LLP with a 12-person team. Eric Dannheim, a senior member of that team will […]

Bloomberg.com: UK & Ireland - “I’ve never lived through something like that,” Stephen Jarislowsky, the 83-year-old chairman and founder of Montreal-based money manager Jarislowsky Fraser Ltd., said yesterday about the past month on Wall Street.
“I don’t even think the ’30s were like that,” he said in a telephone interview. “At least they had a bank […]

New York Daily News - A hedge-fund hottie who sued Vibe and Diddy after the mag published a topless picture of her at the music mogul’s Hamptons blowout has had her case tossed out.
Maria Dominguez, a money manager for a hedge fund, filed the $3 million invasion-of-privacy suit when a shot of her with […]

Wall Street Journal - In another sign of the changing power dynamics between hedge funds and their investors, funds are offering to cut fees if investors agree to stay put.
Camulos Capital LP in a letter last week asked its investors to promise to keep nearly $2 billion in place with the firm for another year […]

Reuters - Blackstone and Kohlberg Kravis Roberts & Co are each looking to buy parts of Lehman’s real estate and asset management units, sources familiar with the situation said on Friday, sparking a broad rebound in financial stocks.
The real estate unit of Lehman Brothers Holdings Inc, which includes property and some asset-backed securities, could be […]

HedgeFund.Net - Swiss funds-of-funds firm Gottex Fund Management is launching a fund that will emulate the investment principles of U.S. “super endowments.”
The new fund will emulate the investment principles of successful U.S. university endowment funds, such as Harvard and Princeton. It will allocate about 65% to alternative investments. The alternative part of the […]

Folks, I want to share some information with you on "hedge funds."
I have wanted to do this for some time now, but it seems each week some other topic pushes this one aside.
Hedge funds are simply large - no, huge is a better term - piles of money. The very rich and very […]

BOSTON (Reuters) - Keeley Asset Management, which made its name by selecting small and forgotten companies, said on Wednesday that it took an 18 percent stake in beleaguered money manager Pzena Investment Management.
Keeley now owns 1.09 million Pzena shares, making it one of the company’s biggest owners, according to a regulatory filing.
"They have been through […]

Bloomberg- BlackRock Inc., the largest publicly traded U.S. money manager, and Ospraie Management LLC, are among five companies that will start Shariah-compliant hedge funds based in Dubai.
The funds will get $50 million each in so-called seed capital from the Dubai Multi Commodities Centre Authority, a government-backed agency. Barclays Capital, securities unit of Britain’s fourth-largest bank, […]

Reuters - Jerome Abernathy has a proposition for the world’s biggest pension funds — better returns than hedge funds without the headaches or heavy costs.
This may sound too good to be true to institutional investors, who have poured billions of dollars into the loosely regulated $2 trillion hedge fund industry in the hope of earning […]

Los Angeles Times - The hedge fund industry can only exist because investors believe their fund managers will deliver above-average returns over time, despite the portfolios’ hefty fees.
Master investor Warren Buffett, who has long derided those fees, now has made an interesting bet with a firm that runs so-called funds-of-hedge-funds: He’ll beat their net returns […]