Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
FierceFinance – David Einhorn, the head of Greenlight Capital, caused quite a stir at the Ira W. Sohn Investment Research Conference last year. He made it known that he was shorting Lehman Brothers, which was trading at $60 at the time. You know the rest of the story.
It’s no surprise that people, including a columnist for the New York Post, were interested in what he had to say at the conference this year. He didn’t deliver the same sort of shocker. Rather, he offered a sober analysis of the Obama Administration’s performance. He basically thinks that the focus on propping up banks hasn’t really done much to the economy as a whole.
Absolute Return – Assets for new hedge-fund launches fell "significantly" in the U.S. last year as hedge funds had their worst-ever year of performance, according to hedge-fund magazine Absolute Return.
"With these results, it’s no surprise that 2008 is being dubbed hedge funds’ worst year," deputy editor Carolyn Sargent said. "Turbulent markets, big losses, fund closures and the Madoff scandal have put investor loyalty to the test. Most investors are staying on the sideline, but those who are allocating capital can demand more favorable investment terms."
The financial crisis spurred investors to convert holdings to cash, and some funds faced unexpected disruptions to their trading strategies, including temporary bans on selling stock short.
BusinessWeek – With the price of gold racing higher over the past two months, more investors are coming around to the notion that the precious metal may be the best option to protect against a possible economic catastrophe. Among the surprise new buyers? Star hedge fund manager David Einhorn.
Gold rose steadily from its November 2008 low of $682 to close at $910.70 on Jan. 26, a five-month high. Despite selling off about $10 an ounce over the next two days, investors, it seems, have realized that much of the Federal Reserve’s plan for fighting the credit crunch and reviving the economy are also likely to bolster gold’s prospects.
