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Jul 10, 2012

Paulson losses grow as Europe bet hurts

NEW YORK (Reuters) – An already very bad year is looking even worse for hedge fund industry titan John Paulson after a bet against Europe lost many of his funds more money last month.

For the year, one of Paulson’s biggest portfolios, the Advantage Plus fund, is off 18 percent. His gold fund is down 23 percent and June’s declines took a bite out of the gains in some of his other funds, according to two investors familiar with the numbers but unable to discuss them publicly.

Jun 26, 2012

Saba’s Weinstein exits bet against JPMorgan: sources

NEW YORK (Reuters) – Saba Capital Management’s Boaz Weinstein recently exited a now famous and profitable credit derivative bet against JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), according to sources familiar with the trade.

In May, JPMorgan reported a $2 billion trading loss in its chief investment office, due to large bets on an obscure group of indexes that track the performance of corporate bonds, including the Markit CDX NA IG Series 9 index. Weinstein’s Saba, among other funds, bet against that trade.

Jun 22, 2012

Investors wary of Europe but ready to jump into high-yield -EPFR

NEW YORK, June 22 (Reuters) – Even as a conservative,
pro-bailout party won the Greek election and quieted fears that
the nation would exit the euro zone, anxious investors withdrew
billions from European money market and bond funds and sought
safety in the United States in the latest week, data for EPFR
Global showed on Fr ida y.

Investors pulled $7.5 billion from European money market
managers in the week ending June 20, and withdrew $886 million
from European bond funds after removing over $1 billion from
those managers the previous week. Redemptions from German bond
funds reached a 12-week high.

Jun 22, 2012
via Unstructured Finance

UF Weekend Reads

By Katya Wachtel

Yes, Germany and Greece have been in a war of words in the unfolding crisis over the latter’s membership in the euro zone, but this afternoon the two nations face off in a different (and far more entertaining) way: they go head-to-head in the European Championship quarterfinal.

As Reuters’ Alexander Hudson reports from Poland, the setting of tonight’s more-than-just-a-game battle, “When Greece take the football field in the Polish coastal city of Gdansk… the honor of the nation is at stake.” Greece, by the way, has never beaten Germany on the soccer pitch.

Jun 20, 2012

Investors fled Europe-linked hedge funds in May: report

NEW YORK (Reuters) – Investors cut their exposure to hedge funds that invest in and are located in Europe during May as the euro zone financial crisis wrought havoc on global markets, data showed on Wednesday.

Investors last month withdrew about $9.3 billion from hedge funds located in Europe and pulled $9.1 billion from hedge funds that invest mostly in Europe, hedge fund tracking firm eVestment|HFN found.

Jun 19, 2012
via Unstructured Finance

Spain, not Greece, on the minds of many money managers

By Katya Wachtel

On Sunday, voters in Greeceā€™s parliamentary election gave market-watchers the result they wanted.

But in the minds of many money managers, those election results are little more than a band-aid for the euro zone’s deep and complex debt problems, and their attention is focused further West. Many hedge fund managers say it is Spain – the euro zone’s fourth largest economy and the recent recipient of a 100 billion euro bank bailout – that is the real concern for the stability global financial markets.

Jun 14, 2012

Credit hedge funds profit despite rocky markets

NEW YORK (Reuters) – In a year of uneven returns for many U.S. hedge funds, managers who invest mainly in bonds have outshone stockpickers.

Over the first five months of the year, credit-focused hedge fund portfolios were up 4.11 percent compared with a 2.4 percent gain for stock-focused ones, according to hedge fund tracking service eVestment|HFN.

Jun 13, 2012

Level Global deserves XL insurance coverage-judge

June 13 (Reuters) – A Manhattan federal judge has ordered an
insurer to keep advancing legal fees of a hedge fund implicated
in a criminal insider trading probe, saying the insurer was not
excused because a fund analyst knew there might be a fraud when
the policy was taken out.

Wednesday’s decision by U.S. District Judge Paul Engelmayer
is a defeat for XL Specialty Insurance Co, which had sought to
rescind its $10 million policy for Level Global Investors LP and
recoup more than $7.3 million already advanced, including to
co-founder Anthony Chiasson.

Jun 8, 2012

Top credit manager at Citadel hedge firm dismissed

NEW YORK, June 8 (Reuters) – Ken Griffin’s Citadel
Investment Group dismissed a high-level credit trader in April,
even though his portfolio had recorded gains for the year,
according to two people familiar with the departure.

David Hensle, who was the head of the quantitative credit
business, left the Chicago-based hedge fund in mid-April.

Jun 6, 2012

Ackman, Loeb, other hedge funds lose in May

BOSTON/NEW YORK (Reuters) – May’s stock market rout dealt a blow to many on Wall Street including several big hedge fund stars whose bets on prominent U.S. companies looked badly timed.

Even William Ackman and Daniel Loeb, two of the $2 trillion industry’s most respected players, failed to escape last month’s sharp sell-off and finished May in the red.

    • 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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