Money managers under the microscope
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
Hedge funds face investor war on fees – Reuters
Och-Ziff third quarter income falls – Reuters
Mark Kary to resign from Polar Capital - FT Adviser
Asian hedge fund asset on the rise – Bloomberg
Our favorite billionaire blogger and corporate raider Carl Icahn is safely avoiding writer’s cramp. His Icahn Report, launched to much fanfare as a hub for corporate governance and reform, has not been updated since April 16.
Reuters caught up with Icahn this week to discuss his intervention in CIT’s attempted rescue. The legendary investor threw a bomb into the lender’s efforts to strike a debt swap deal with its creditors, and to stay in business through a reorganization plan, by offering a $6 billion loan. Asked about the lack of production on his blog, Icahn explained he’s been fully engaged this year:
HedgeFund.net, which tracks industry performance and trends, in a report released this week estimated that total hedge fund assets rose more than 2.5 percent, or $47 billion, to reach $1.89 trillion at the end of last month. Nearly half that growth came from net inflows of $19.6 billion.
Friedberg reopens Global Macro Hedge Fund - Hedge Funds Review
Hedge Fund billionaire bankrolls Conservatives – The Times
Top trader launches hedge fund – The Telegraph
The financial industry is famously flexible. Previously held shibboleths can be ditched in the blink of an eye to be replaced by more appropriate, and profitable, assumptions.
And so it is that hedge funds have embraced restructuring culture. No longer is there shame in distressed assets, forced sales and dried up liquidity. In a time when going to the wall is an everyday occurrence, the smart money, and the optimism, comes from finding opportunity in straitened times.