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Reuters - Lehman Brothers Holdings Inc agreed on Wednesday to sell its 45 percent stake in hedge fund R3 Capital Partners for $250 million in cash and a $250 million investment in another fund managed by R3.
Lehman, which filed for bankruptcy protection last month, acquired the stake in May in return of a roughly $1 billion investment, according to document filed in U.S. Bankruptcy Court in Manhattan.
R3 Capital is run by Richard Rieder, a former head of global principal strategies at Lehman.
Lehman owned the non-voting, minority ownership stakes in the master fund, general partner, special limited partner and management company of R3 Capital Partners, an asset manager of funds investing primarily in corporate bonds and loans.
Slate - The Wall Street bailout is alive again. In an effort to make the $700 billion bailout palatable, the architects of the law have larded it up with all sorts of goodies, such as increasing the levels of deposit insurance, sparing some taxpayers the ravages of the Alternative Minimum Tax, and extending tax breaks for alternative energy. Henry Paulson’s three-page sprig has sprouted into a 451-page Christmas tree.
What’s most interesting about the Emergency Economic Stabilization Act of 2008 is just how much it reads like a prospectus for a hedge fund. In the past, hedge funds—secretive pools of capital—were open only to qualified (read: rich) investors.
But with the stroke of a pen, President Bush will soon make all American citizens investors in the world’s biggest fund—and a democratic one at that. Taxpayers won’t just be the investors. We’ll own the management company, too. Best of all? For at least a few months, we’ll have the former CEO of Goldman Sachs run our investment for a very small fee. Call it the "Universal Hedge Fund."
Investors Chronicle- In Homer’s Iliad, Troy was razed to the ground by Greek warriors, but Troy Asset Management aims to put up a much better defence for its investors. The boutique fund manager takes its name not from the ancient city but from Lord Weinstock’s British thoroughbred racehorse, winner of the 1979 Epsom Derby.
As chief executive of Troy Asset Management, Sebastian Lyon’s main concern is not to lose investors’ money. He used to work for GEC as one of the team running its pension fund but in 2000 was asked by GEC managing director Lord Weinstock to set up an independent management company to look after £36m of the family fortune, with a brief to look after it conservatively.
Troy’s three funds are open to investors who have £10,000 (or £7,200 in an individual savings account) to invest, and between them they have assets of £258m.
"It’s not an easy time to be a fund manager," admits Mr Lyon, who manages the conservative Trojan Fund and co-manages the more aggressive Trojan Capital Fund. "We will probably continue to be in a bear market for the next year or so."
Financial Times - Man Group has teamed up with an Abu Dhabi-owned investment company to make electricity from the gas produced as a byproduct of oil drilling, which is currently wasted in the form of flaring.
Abu Dhabi will inject the first $300m (£151m) into a new fund, which aims to raise $1.5bn, and will receive a small equity holding in the management company.
The launch of the MENA Associated Gas and Global Environment fund is the latest attempt by Europe’s biggest hedge fund manager to cash in on the boom in environmental investing.
Through MTM, a London subsidiary, it already runs a $600m fund capturing methane emissions from Chinese coal mines, and it is considering launching a Brazilian biofuel fund.
Peter Clarke, Man chief executive, said talks were already under way with countries in the Middle East, north Africa and Asia about working with their national oil companies. He said it already had many expressions of interest from sovereign wealth funds keen to put money in and had the potential to double its size to $3bn if it attracted enough money.