Einhorn warns U.S. policies creating enormous risks
NEW YORK (Reuters) – The monetary and fiscal policies in the United States are creating enormous risks and the Federal Reserve’s actions in particular are now harming the economy, influential hedge fund manager David Einhorn said on Thursday.
The founder of Greenlight Capital, which manages $7.7 billion, repeated his criticism of the Fed’s very easy monetary policy, arguing at a conference that it now has “negative returns.”
PIMCO’s El-Erian sees more stimulus from ECB and Fed
NEW YORK, Oct 24 (Reuters) – The European Central Bank and
the U.S. Federal Reserve will very likely provide even more
stimulus to their economies, the chief executive of PIMCO, the
world’s largest bond fund, said on Wednesday.
The two powerful central banks are “all in” as they act to
give lawmakers more time to heal their respective problems in
Europe and the United States, Mohamed El-Erian, who is also
co-chief investment officer of Pacific Investment Management Co,
said in speech at a conference hosted by The Economist magazine.
Greenlight’s Einhorn questions Fed “spending spree”
NEW YORK (Reuters) – Hedge fund manager David Einhorn raised concerns about the U.S. central bank’s latest round of stimulus, saying Federal Reserve Chairman Ben Bernanke “announced desperate measures in non-desperate times.”
“What once looked like a purchasing spree of unimaginable proportions is now just the monthly budget,” Einhorn said in a quarterly letter to investors dated Tuesday. He runs the $7.7 billion Greenlight Capital hedge fund firm and is one of the industry’s best-known managers.
Greenlight’s Einhorn questions U.S. Fed ‘spending spree’
NEW YORK, Oct 24 (Reuters) – Hedge fund manager David
Einhorn raised concerns about the U.S central bank’s latest
round of stimulus, saying Federal Reserve Chairman Ben Bernanke
“announced desperate measures in non-desperate times.”
“What once looked like a purchasing spree of unimaginable
proportions is now just the monthly budget,” Einhorn said in a
quarterly letter to investors dated Tuesday. He runs the $7.7
billion Greenlight Capital hedge fund firm and is one of the
industry’s best-known managers.
Blackstone targets stakes in hedge fund managers
NEW YORK (Reuters) – Blackstone Group is preparing to launch a multibillion-dollar fund that will buy stakes in hedge fund managers in the secondary market, as traditional buyers such as banks pull back amid disappointing fund performance and regulation.
Blackstone (BX.N: Quote, Profile, Research, Stock Buzz), whose hedge-fund solutions business has $46.2 billion in assets under management, sees an opportunity to provide an exit for banks, insurers and other financial institutions that need buyers willing to take on what are particularly illiquid investments, a source familiar with the firm’s plans said.
Exclusive: Blackstone targets stakes in hedge fund managers
NEW YORK (Reuters) – Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz) is preparing to launch a multibillion-dollar fund that will buy stakes in hedge fund managers in the secondary market, as traditional buyers such as banks pull back amid disappointing fund performance and regulation.
Blackstone, whose hedge-fund solutions business has $46.2 billion in assets under management, sees an opportunity to provide an exit for banks, insurers and other financial institutions that need buyers willing to take on what are particularly illiquid investments, a source familiar with the firm’s plans said.
One-year-old ETF beats hedge funds, stock market in first year
NEW YORK, Oct 16 (Reuters) – A one-year-old actively managed
exchange-traded stock fund has beaten a number of market
benchmarks in its first year, including most hedge funds, the
ETF sponsor AdvisorShares said on T u e sday.
Through September 30, the TrimTabs Float Shrink ETF
gained 35.14 percent since it launched on October 4 last year,
beating the benchmark Russell 3000 Index, which rose 32.85
percent over the same period, as well as the S&P 500 index.
Emerging market hedge funds stand out in mediocre year
NEW YORK, Oct 15 (Reuters) – Fund managers that specialize
in investing in emerging markets have achieved standout gains of
nearly 8 percent in a year when the typical hedge fund has eked
out returns of about 5 percent, recent data showed.
Emerging market-focused hedge funds gained 4.5 percent in
the third quarter, adding about 2.6 percent in September,
according to industry tracker eVestment|HFN.
U.S. hedge funds increase leverage in August – report
NEW YORK, Oct 8 (Reuters) – U.S. hedge funds and other
clients of Wall Street investment firms raised their level of
borrowed money in August, a sign they may be more confident in
the markets, data published Monday showed.
Leverage rose to $286.6 billion last month, according to New
York Stock Exchange margin debt data, up 5.4 percent since
August last year. It is the first time in nine months that
margin debt has increased on a year-over-year basis, analysts at
Bank of America Merrill Lynch showed in their Hedge Fund
Monitor report.
Hedge funds love affair with leverage still on hiatus, for now
By Katya Wachtel
Last year was a sorry one for the $2 trillion hedge fund industry, when funds lost 5 percent on average. This year managers are doing better, up more than 5 percent for the year, according to the latest tracking data.
But those returns are a far cry from the 16.4 percent rise achieved by the S&P 500 this year, so what will hedge fund managers – who are supposed to be the smartest, savviest market players on the Street – do to juice returns?
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