Jennifer's Feed
Oct 20, 2014

Loomis Sayles bought junk bonds during sell-off last week: Fuss

NEW YORK (Reuters) – Dan Fuss, vice chairman and senior portfolio manager at Loomis Sayles, said he purchased some below investment-grade credits during last week’s sell-off at “reasonably priced levels,” bringing his portfolio cash levels down to 22 percent from 26 percent.

“We bought some at reasonably priced levels but not fantastically cheap,” said Fuss, who helps oversee more than $223 billion at the Boston-based firm. High-yield corporate bond spreads widened out to 5.08 percentage points over comparable U.S. Treasuries last week, up from a modest 3.35 percentage points as recently as June. It was the highest credit-risk spread on the securities in more than a year, according to Bank of the West. In April, Fuss called junk bonds and corporate debt securities “high-priced.”

Oct 17, 2014

Suvretta Capital up six percent year-to-date despite brutal selloff

New York (Reuters) – Suvretta Capital Management, founded by a former portfolio manager for billionaire investors George Soros and Steven A. Cohen, is generating net returns of 6 percent year-to-date, despite this week’s stock market drop and wild gyrations, according to two sources familiar with the situation.

Suvretta Chief Investment Officer Aaron Cowen joins a growing list of long-short hedge fund managers who have profited handsomely this week by taking long positions in stocks expected to increase in value and shorting stocks expected to decrease in value. The firm oversees more than $1 billion in assets.

Oct 17, 2014

Suvretta Capital up 6 pct year-to-date despite brutal selloff

New York, Oct 17 (Reuters) – Suvretta Capital Management,
founded by a former portfolio manager for billionaire investors
George Soros and Steven A. Cohen, is generating net returns of 6
percent year-to-date, despite this week’s stock market drop and
wild gyrations, according to two sources familiar with the
situation.

Suvretta Chief Investment Officer Aaron Cowen joins a
growing list of long-short hedge fund managers who have profited
handsomely this week by taking long positions in stocks
expected to increase in value and shorting stocks expected to
decrease in value. The firm oversees more than $1 billion in
assets.

Oct 16, 2014

Russell Investments, Fort Lauderdale pension ax Pimco

NEW YORK (Reuters) – Russell Investments and the Fort Lauderdale (Fla.) Police & Fire Retirement System said on Thursday they dropped Pacific Investment Management Co as the manager of their bond portfolios following the departure of Bill Gross in late September.

Russell Investments, which has more than $279 billion in assets under management, said it is replacing Pimco with Scout Investments Inc on its U.S. short-duration and core-plus portfolios.

Oct 16, 2014

Short seller Carson Block mulls starting hedge fund management firm

NEW YORK, Oct 16 (Reuters) – Short seller Carson Block, the
founder of research firm Muddy Waters LLC who has exposed
accounting problems at a slew of Chinese companies, said on
Thursday that he is seriously considering launching a hedge fund
investment firm.

“We are more so than ever very seriously considering
becoming a fund manager, but it would not be the same sort of
Muddy Waters 8,000-page reports,” Block said in an interview.
“When you’re running a fund management business, it takes a lot
of resources to put those out.”

Oct 16, 2014

Exclusive: Short seller Carson Block considers hedge fund management firm

NEW YORK (Reuters) – Short seller Carson Block, the founder of research firm Muddy Waters LLC who has exposed accounting problems at a slew of Chinese companies, said on Thursday that he is seriously considering launching a hedge fund investment firm.

“We are more so than ever very seriously considering becoming a fund manager, but it would not be the same sort of Muddy Waters 8,000-page reports,” Block said in an interview. “When you’re running a fund management business, it takes a lot of resources to put those out.”

Oct 15, 2014

Prudential’s Peters says firm has been purchasing high-yield junk bonds

NEW YORK (Reuters) – Greg Peters, the asset strategist who sounded an early alarm about the financial crisis and is now at Prudential Investments, said on Wednesday that the market downdraft and volatility may accelerate central bank aggressiveness, particularly in Europe and Japan.

Peters, who helps manage over $533 billion in assets as senior portfolio manager at Prudential Investments, told Reuters that the current environment is a “perverse positive” as it takes the Federal Reserve “out of the picture in terms of pushing out rates hikes or retarding the pace of hikes.”  

Oct 13, 2014

Arkansas Teachers terminates $475 million Pimco portfolio: executive director

NEW YORK (Reuters) – The Arkansas Teacher Retirement System terminated Pacific Investment Management Co, which managed about $475 million for its pension fund, following the departure of Bill Gross in late September, George Hopkins, executive director, said on Monday.

“Under any circumstance, we were going to trim our fixed-income exposure and de-risk our fixed-income portfolios,” Hopkins told Reuters. “Mr. Gross leaves and so it was an easy opening for us to do the same. Pimco found themselves in the wrong place at the wrong time.”

Oct 13, 2014

Arkansas Teachers terminates $475 mln Pimco portfolio -exec director

NEW YORK, Oct 13 (Reuters) – The Arkansas Teacher Retirement
System terminated Pacific Investment Management Co, which
managed about $475 million for its pension fund, following the
departure of Bill Gross in late September, George Hopkins,
executive director, said on Monday.

“Under any circumstance, we were going to trim our
fixed-income exposure and de-risk our fixed-income portfolios,”
Hopkins told Reuters. “Mr. Gross leaves and so it was an easy
opening for us to do the same. Pimco found themselves in the
wrong place at the wrong time.”

Oct 13, 2014

Pimco chief Ivascyn says final investment calls rest with him

NEW YORK (Reuters) – Pimco’s new investment chief Dan Ivascyn, who replaced Bill Gross two weeks ago, said he has no issues breaking with the majority opinion of the global fund manager’s investment committee, but said he does not foresee that happening often.

“Bill and Mohamed clearly had a high-profile role, but Pimco’s macro thesis, Pimco’s portfolio positioning has always been a team effort,” Ivascyn said of Gross and his one-time heir apparent, Mohamed El-Erian.