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Nov 22, 2013

Analysis – Why hedge funds still manage to seduce

NEW YORK (Reuters) – Hedge fund investor Hugh Culverhouse Jr. says the $2.25 trillion industry was an easier place for wealthy individuals to make money a decade ago.

Funds were smaller, returns were higher and managers did more to cultivate the support of those well-heeled individuals and families because large institutions like pension funds had yet to embrace the industry.

Nov 22, 2013

Why hedge funds still manage to seduce

NEW YORK, Nov 22 (Reuters) – Hedge fund investor Hugh
Culverhouse Jr. says the $2.25 trillion industry was an easier
place for wealthy individuals to make money a decade ago.

Funds were smaller, returns were higher and managers did
more to cultivate the support of those well-heeled individuals
and families because large institutions like pension funds had
yet to embrace the industry.

Nov 22, 2013
via Unstructured Finance

What the? Money managers and the fog of bitcoin

Photo

“I still don’t even know what it is” – Jim Chanos, famed short-seller and founder of $6 billion Kynikos Associates.

“You know,  I don’t understand bitcoin” – Bonnie Baha, head of Global Developed Credit at $53 billion DoubleLine Capital.

Nov 22, 2013
via Unstructured Finance

Berkowitz, Ackman bets on Fannie and Freddie puzzle investors and policy buffs

On Thursday, the United States threw cold water on Bruce Berkowitz’s daring proposal to recapitalize mortgage finance behemoths Fannie Mae and Freddie Mac, saying the only way to revamp the home loan market is through proper housing finance reform.

Berkowitz’s Fairholme Capital Management said it wants to buy the mortgage-backed securities insurance businesses of Fannie and Freddie by bringing in $52 billion in new capital, in a bid to resolve the uncertain future of the mortgage financiers by freeing them from U.S. government control. For its part, the government said the way forward would be to create a new housing finance system in which private capital would play a pivotal role.

Nov 22, 2013

SAC chief operating officer to leave as hedge fund transforms

NEW YORK (Reuters) – A top lieutenant at Steven A. Cohen’s SAC Capital Advisors will leave the hedge fund in the new year as the once $15 billion firm converts to a family office, according to a memo sent to employees and seen by Reuters.

Sol Kumin, the firm’s chief operating officer, will leave SAC in January, the memo from Cohen said.

Nov 21, 2013

SAC chief operating officer to leave hedge fund as firm transforms

NEW YORK (Reuters) – A top lieutenant at Steven A. Cohen’s SAC Capital Advisors will leave the hedge fund in the new year as the once $15 billion firm converts to a family office, according to a memo sent to employees and seen by Reuters.

Sol Kumin, the firms’ chief operating officer, will leave SAC in January, the memo from Cohen said.

Nov 21, 2013

Omega’s Einhorn says ‘sweet combination’ boosting stocks

NEW YORK (Reuters) – A top executive at Leon Cooperman’s hedge fund Omega Advisors Inc said that U.S. equities are nowhere near a bubble, and that stock markets in developed countries around the world should power higher in 2014.

Calling himself “bullish” on equities, Omega Vice Chairman Steven Einhorn said U.S., Japanese and euro zone markets should benefit from a “very sweet combination” of accommodative central bank monetary policies, together with a “synchronized, long-lasting, self-sustaining global economic expansion.

Nov 20, 2013

Metacapital’s Narula sees market hazards ahead

NEW YORK (Reuters) – Deepak Narula, one of the hedge fund industry’s best known mortgage bond traders, said he sees a much tougher year ahead for investors but sees opportunities in certain mortgage trades.

Next year will “be a more challenging year” than 2013 because of “much greater uncertainty around how the Fed will behave,” and because of lofty bond and equity valuations, Narula, the founder of $1.45 billion hedge fund Metacapital Management, said on Wednesday.

Nov 20, 2013

Pine River hedge fund says will gain from stricter rules

NEW YORK (Reuters) – Colin Teichholtz, co-head of fixed income trading at $14 billion Pine River Capital Management, said the hedge fund firm will benefit from new Wall Street regulations as investment banks pull out of markets it likes to trade in.

Teichholtz, speaking at the Reuters Global Investment Summit in New York on Tuesday, said his firm is already seeing the perks of the stricter environment.

Nov 19, 2013

Libremax’s Lippmann likes student loan debt, mortgage bonds

NEW YORK (Reuters) – Hedge fund manager Greg Lippmann, the former Deutsche Bank trader who rose to Wall Street fame after a hefty and lucrative bet against subprime mortgages before the housing market collapsed, said he is still a fan of residential and commercial mortgage bonds going into 2014 and also likes student loan debt.

Lippmann told the Reuters Global Investment Outlook Summit on Tuesday his roughly $2.8 billion hedge fund LibreMax Capital has been “very active” in consumer asset-backed securities (ABS), particularly student loans but also credit card debt.

    • About Katya

      "Katya Wachtel is a hedge fund and big money reporter for Reuters. She hails from Melbourne. Australia, not Florida. You can contact her at katya.wachtel@thomsonreuters.com"
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