Jennifer's Feed
Apr 22, 2014

Greenlight Capital down 1.5 percent in first-quarter, warns of second ‘tech bubble’

By Jennifer Ablan

(Reuters) – David Einhorn’s Greenlight Capital Inc closed the firm’s money-losing short position in Chipotle Mexican Grill Inc, the $10 billion hedge fund said in a letter to clients on Tuesday, and the firm has started shorting a group of momentum stocks that he did not identify.

“There is a clear consensus that we are witnessing our second tech bubble in 15 years,” Greenlight said. “In our view, the current bubble is an echo of the previous tech bubble, but with fewer larger capitalization stocks and much less public enthusiasm.”

Apr 22, 2014

Greenlight Capital down 1.5 pct in Q1, warns of second ‘tech bubble’

April 22 (Reuters) – David Einhorn’s Greenlight Capital Inc
closed the firm’s money-losing short position in Chipotle
Mexican Grill Inc, the $10 billion hedge fund said in a
letter to clients on Tuesday, and the firm has started shorting
a group of momentum stocks that he did not identify.

“There is a clear consensus that we are witnessing our
second tech bubble in 15 years,” Greenlight said. “In our view,
the current bubble is an echo of the previous tech bubble, but
with fewer larger capitalization stocks and much less public
enthusiasm.”

Apr 21, 2014

DoubleLine hires Pimco exec for new bond product team

NEW YORK (Reuters) – DoubleLine Capital, the bond management firm run by Jeffrey Gundlach, said on Monday it had hired an executive from rival Pimco to run a new unit focused on developing new investment products and lines of business, particularly outside the United States.

DoubleLine named Ignacio Sosa, previously Pimco’s executive vice president for global bond product management, director of its newly formed Product Solutions Group. He starts on May 12 and will report to Gundlach.

Apr 11, 2014

Loomis Sayles’ Fuss sees little value in bonds, boosts cash in fund

NEW YORK (Reuters) – Dan Fuss, known as the Warren Buffett of bonds, said his $23 billion Loomis Sayles Bond Fund is sitting on more than 20 percent of cash and cash equivalents, its highest level ever, because he sees scant opportunities in the bond market.

“If we saw a lot of value, we wouldn’t have those reserves,” Fuss told Reuters in an interview on Friday.

Apr 11, 2014

El-Erian can’t respond to Pimco’s Gross due to terms of departure-sources

April 11 (Reuters) – Mohamed El-Erian, former CEO of Pimco,
has been unwilling to respond to criticism from the bond
investment firm’s chief investment officer Bill Gross because of
a strict non-disclosure agreement he made with Pimco, according
to two sources familiar with his thinking.

Pimco shocked investors in January when it announced that
El-Erian was leaving the firm. He had been groomed to be
successor to Gross, who is known as ‘The Bond King’ and who
oversees nearly $2 trillion of assets.

Apr 4, 2014

Mercer says terminated Pimco, Western Asset as subadvisers on a bond fund: SEC

By Jennifer Ablan

(Reuters) – Mercer Investment Management Inc has terminated Pacific Investment Management Company LLC and Western Asset Management Company as subadvisers to the Mercer Core Fixed Income Fund, effective immediately, according to an SEC filing on Thursday.

Income Research & Management and Prudential Investment Management Inc will serve as the new subadvisers to the Mercer Core Fixed Income portfolio, the filing added.

Apr 3, 2014

‘Bond King’ Gross writes an ode to his dead cat, Bob

By Jennifer Ablan

(Reuters) – Bill Gross, co-founder of bond fund giant Pimco and widely known as the “Bond King,” has had a rough start to the year.

He’s still dealing with the waves caused by a public falling-out with former heir-apparent Mohamed El-Erian, while in March the flagship Pimco Total Return Fund suffered an 11th straight month of outflows and its performance lagged 95 percent of its peers.

Apr 3, 2014

Pimco’s Gross sees low, mid-single digit returns in 2014

NEW YORK (Reuters) – Bill Gross, manager of the world’s largest bond fund at Pimco, said on Thursday that asset returns will be in the low- to mid-single digits this year despite relatively positive economic growth.

Expectations on return for all unleveraged assets and diversified portfolios that attempt to reduce risk and maximize return will be in the low- to mid-single digits, Gross said in his monthly letter to investors.

Apr 2, 2014

Ackman’s fund up 10.7 percent in first quarter, others hurt by tech drop

By Svea Herbst-Bayliss and Jennifer Ablan

(Reuters) – Activist investor William Ackman, who has spent $1 billion betting that Herbalife is a fraud, delivered double digit returns to his investors during the first quarter even as many rival hedge funds posted only small gains or even losses.

In a note to investors, Ackman reported on Wednesday that his flagship Pershing Square LP fund gained 10.7 percent during the first quarter even after the fund slipped 0.6 percent last month, several people familiar with his returns said. Those people were not authorized to speak on the record.

Apr 2, 2014

Ackman’s fund up 10.7 pct in Q1, others hurt by tech drop

April 2 (Reuters) – Activist investor William Ackman, who
has spent $1 billion betting that Herbalife is a fraud,
delivered double digit returns to his investors during the first
quarter even as many rival hedge funds posted only small gains
or even losses.

In a note to investors, Ackman reported on Wednesday that
his flagship Pershing Square LP fund gained 10.7 percent during
the first quarter even after the fund slipped 0.6 percent last
month, several people familiar with his returns said. Those
people were not authorized to speak on the record.