Funds Hub

Money managers under the microscope

Morning line-up: Naked shorts and synthetic outrage

News and views on the fund industry from Reuters and elsewhere:

RTR1SGF8‘Synthetic’ outrage over the hedge fund directive – Economist

Aussie’s Goldman claim gets traction – Reuters

Oprah’s family office – WSJ

Missing the point? – Reuters BreakingViews

…More on the German ban – Zero Hedge

Public pensions: the billion/trillion/TBC issue for the new fiscal watchdog

 The moment of truth has come: the new government is going to outline £6 billion of spending cuts and to make sure it will stick to deficit tackling measures, it has appointed a new fiscal watchdog, the Office for Budget Responsibility (OBR).

As part of its remit, the new agency will also ”have a role in making an independent assessment of the public sector balance sheet including analysing the cost of ageing, public service pensions,” the Treasury says.

from DealZone:

In man vs machine, GLG has Manly appeal

Hedge fund firm Man Group apparently pricey deal to buy GLG Partners gives Man – the world’s biggest listed hedge fund -- better access to the large and lucrative U.S. market. It also counts as a small win for the human race in its apocryphal war for investors' funds with cheaper, faster and -- many would argue -- far more dangerous algorithmic trading machines known as black boxes.

The $1.6 billion cash-and-shares deal represents a heady 55 percent premium to GLG's closing price on Friday. Clearly some investors are worried it's a little too rich. It has so far driven the shares of Man – which had already lost about a fifth of their value since mid-April -- down by a little more than 8 percent.

Yu-Dee Chang: Opportunities for managed futures funds


Guest blogger Yu-Dee Chang is the sole principal and chief trader of ACE Investment Strategists. He has continuously been registered in the commodity industry for the past 14 years. From August of 1997 to the present he has operated Chesapeake Investment Services Inc., a Virginia based Introducing Broker where he is the President and Chief Executive Officer.

The views expressed here are entirely the author’s own and do not constitute Reuters’ point of view.

What’s best for you: UK plc or Macdonald’s?

Pension schemes have retrenched in the wake of the global crisis.

To put it in more delicately:  it is a universally acknowledged truth that a pension fund in deficit must be in want of a sustainable  source of returns to bridge the funding gap, at moderate risks.

For some the solution has been to change investment strategy, but not necessarily at the expense of equity. In fact, for some the shift has been within an already existing fixed income portfolio, from UK gilts — a popular choice in the post-Lehman days — to corporate bonds, a senior fund manager tells me. Nice work if you can get it — this could be what some investors are saying now,  especially if they are UK/euro zone sovereign debt holders.