Funds Hub

Money managers under the microscope

Hedge funds avoid sticky situation in Cadbury

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Figures from Data Explorers today show hedge funds have again been largely right in their short positions, this time in Cadbury.

rtx9ixrShares in the world’s second-biggest chocolate and sweets maker shot up around 38 percent today after it snubbed a 745 pence a share bid but many funds had long since closed their shorts.

Data Explorers’ figures show stock out on loan — a strong indication of short interest — in Cadbury fell from from more than 4 percent in May to just 1 percent by last Thursday.

However, this had crept up from around 0.5 percent in July, indicating a few funds had been betting on a price fall, perhaps to balance out long positions in more cyclical stocks that were rallying.

Tilting at windmills

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Hedge fund rules on thin ice?The growing discomfort among pension funds over EU plans to regulate the hedge fund industry has prompted another public pronouncement, this time from Dutch schemes with assets of about 450 billion euros, including APG and PGGM.

We’ve noted the potential pivotal role the pension industry could play before, but as yet there hasn’t been an appreciable softening in the tone adopted by the hardliners. Their standard bearer Poul Nyrup Rasmussen called London Mayor Boris Johnson “out of touch with reality” after the much-lobbied blonde tried to strike a blow for the alternatives industry on a vist to Brussels this week.

Guard dog shows teeth

You’ve got to hand it to Cerberus.

While we dutifully write stories about a new beginning for the hedge fund industry, marked by transparency at levels never seen before and fund structures designed to satisfy those burned by the credit crisis, the firm named after the guard dog at the gates of Hades comes up with its own tactic — lock up investor money for three years.

You might think that this is the last thing investors want, but it has a curious logic.

from From Reuters.com:

Following the smart money

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At least 20 of the 30 biggest hedge funds boosted their positions in financial institutions in the last quarter, a sign that Wall Street is ready to bet on more risky sectors in the hope of longer-term rewards.

The push into financials indicates fund managers including Steven Cohen and John Paulson -- closely watched as barometers of risk -- have shifted from routine merger arbitrage plays to directional bets with more reward potential.

Distressed investing: surprises at every turn

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Library photo of A worker of Electricite de France repairs damaged cables caused by a winter storm in Bayonne REUTERS/Regis Duvignau (FRANCE)Investing in a company in trouble is rarely for the faint-hearted, as the funds lending to Eggborough power station know.

Earlier today France’s EDF, Eggborough’s current owner, confirmed lenders to the coal-fired power station planned to exercise their option to buy the Yorkshire plant for about 190 million pounds.

Brush up your CVs!

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That perfect job running a convertible arbitrage fund could be just around the corner…

rtx9ynrIt’s still early days, but after nearly 1,500 hedge fund closures last year and job cuts at many firms, there are signs that some hedge funds are hiring again.

VW drops as hedge funds move in

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Volkswagen ordinary shares are down today after yesterday’s report of increased short positions.

rtr26v0yStock out on loan, a good indication of shorting, has doubled over the past month to 2 pct of total issuance, according to figures from Dataexplorers.

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