HedgeCo.Net

Bloomberg – The Children’s Investment Fund Management UK LLP, a $9.5 billion London-based hedge fund, has about $1.2 billion of short positions in Japanese stocks including Toshiba Corp., according to exchange filings.

The fund, better known as TCI, has shorted 13 Japanese stocks, data based on exchange filings compiled by Bloomberg show. Mizuho Financial Group Inc., Japan’s second-biggest bank by revenue, and Sony Corp., the world’s second-biggest consumer- electronics maker, are also among the short positions.

The bets against Japanese stocks by activist fund TCI, which lost a proxy battle with Japanese utility Electric Power Development Co. last year, come as the Nikkei 225 Stock Average completed its worst fiscal year since March 2001, losing 35 percent. TCI’s fund fell 43 percent in 2008, as global hedge funds were battered by client withdrawals and the worst market losses since the 1930s.

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Tags: 1930s, activist, development co, financial group inc, fiscal year, investment fund management, japanese stocks, management-uk, market-losses, mizuho financial group, nikkei 225, proxy battle, sony-corp, stock average, stocks data, tci, toshiba corp, withdrawals

New York (HedgeCo.Net) – New York-based Harbinger Capital Partners has capped year-end withdrawals from its largest hedge fund after investors moved to pull $3.5 billion of capital. The hedge fund, run by Philip Falcone, will only honor 60 to 70 percent of the requests, according to a report by Bloomberg News.

The Harbinger Capital Partners Master Fund, which manages approximately $10 billion, has never posted a losing year since its launch in 2001. While 2007 saw returns of 115 percent, the fund has lost 23 percent through the end of November, according to the report which cited people familiar with the matter.

Harbinger is just one of dozens of hedge funds who has suspended redemptions this year amidst unfavorable market conditions. Large firms like RAB, Pardus and Citadel are just among a few who have halted withdrawals in hopes of waiting out the storm and avoiding a liquidity crunch.

Harbinger likes to invest in companies either going through mergers or in companies they feel they can strategically change for the better. The firm made headlines when they sought seats on both the New York Times and Media General; two companies in which they invest. They won their board seats after a much publicized proxy battle earlier this year.

Hedge funds as a whole have suffered this year, posting record losses. According to the Credit Suisse/Tremont Hedge Fund Index, hedge funds are down over 19 percent on the year through the end of November. It is estimated that the once $3 trillion industry will manage a mere $1 trillion at the start of the new year.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: accredited-investors, credit-suisse, falcone, harbinger, harbinger capital partners, harbinger capital partners master fund, hedge-fund-index, hedgeco, launch, liquidity, new york times, pardus, proxy battle, rab, record losses, redemptions, sister-sites, tremont-hedge-fund-index, waiting out the storm