Money managers under the microscope
M&A is on the up again and hedge funds are getting ready – last week we revealed Cheyne Capital had raised over $100 mln for an event-driven fund.
The fund will concentrate on ‘hard’ news (as opposed to rumours of deals), but, as suggested in their name, such funds can look at a wider range of events than just M&A, including restructurings, debt refinancings, asset sales, share buybacks and so on.
In Cheyne’s case, it has spotted what it thinks is a great opportunity in Royal Bank of Scotland debt.
Co-manager Michel Massoud explains:
“In RBS’s tier 1 instruments we’ve found two that had embedded in them the option, at the discretion of the holder, to
be redeemed at par if the bond is not called at its call date.
Investors said to bet on Citadel once more - New York Times dealbook
It may be the awakening we all experience in the spring, but this month two different class actions against previous financial giants were started by a bunch of pension schemes. In both cases a small group of such previously semi-obscure institutions have de facto come under the spot light for suing companies– and their executives– which they say have been less than straight about their financial shape and lost them millions.
Earlier this week five schemes, including Europe’s second largest one, clubbed to become lead plaintiff in a class action over about $274 million losses incurred since Bank of America took over Merrill Lynch.