European Hedge Funds Correspondent
Laurence's Feed
Dec 14, 2012

UK’s SFO charges Weavering fund founder with fraud

LONDON, Dec 14 (Reuters) – Britain’s Serious Fraud Office
(SFO) has charged Magnus Peterson, the founder of Weavering
Capital, with fraud and forgery, just months after reopening its
investigation into the collapsed $600 million hedge fund.

The SFO said on Friday Peterson was charged with six
offences, comprising two of false accounting, one of fraudulent
trading, one of fraud by abuse of position and two of forgery.

Dec 13, 2012

Legg Mason to buy fund of hedge fund firm Fauchier

By Laurence Fletcher and Sagarika Jaisinghani

(Reuters) – U.S. asset manager Legg Mason Inc (LM.N: Quote, Profile, Research, Stock Buzz) is to buy Fauchier Partners, one of London’s oldest fund of hedge fund firms, from BNP Paribas Investment Partners (BNPP.PA: Quote, Profile, Research, Stock Buzz), in the latest deal in the fast-consolidating sector.

London-based Fauchier, which runs $6 billion in assets and has been tipped as a possible sale target since last year, will be merged with Legg Mason’s fund of funds firm Permal, creating a unit with around $24 billion in assets under management.

Dec 13, 2012

Some hedge funds dump their bets against France

LONDON (Reuters) – Some hedge funds are calling it quits on one of their biggest trades of the year – shorting French government bonds.

Earlier this year many in London’s hedge fund industry were lining up bets against the euro zone’s second-largest economy, reckoning the May election of President Francois Hollande, a socialist, would accelerate the country’s deteriorating economic outlook.

Dec 6, 2012

Hedge fund firm LNG bets on short-dated Greek bonds

LONDON, Dec 6 (Reuters) – Hedge fund firm LNG Capital is
betting on short-dated Greek bonds as one of a number of
managers to believe the debt-laden country could end up paying
back some of its bondholders at face value.

Louis Gargour, chief investment officer at the London-based
firm, told Reuters he has built up positions in Swiss
franc-denominated Greek bonds maturing in May next year and U.S.
dollar-denominated bonds maturing in July.

Dec 6, 2012

‘Black box’ hedge funds buy exchange seats to dodge brokers

LONDON, Dec 6 (Reuters) – Some of the world’s top
computer-driven hedge funds are buying exchange memberships to
trade directly on the biggest commodities and financial futures
markets, saving on the sizeable commissions normally paid to
brokers.

Eager to improve returns and keep details of their ‘black
box’ trading strategies as secret as possible, so-called CTA
(commodity trading advisor) funds are buying exchange membership
seats for hundreds of thousands of dollars.

Dec 4, 2012

Hedge funds hold out for more from Greece

LONDON, Dec 4 (Reuters) – Hedge funds are preparing to
resist Greece’s attempt to cut its debt by holding out against a
government bond buyback in the hope of bigger gains further down
the line.

Greece had to offer a higher price than expected at a 10
billion euro ($13 billion) buyback on Monday after hedge funds
buying bonds pushed prices higher.

Nov 29, 2012

New investor body could lack firepower, say bosses

LONDON (Reuters) – UK proposals for an investor forum to improve relations with company boards face a challenge garnering support from hedge funds and sovereign wealth funds and avoiding charges of collusion, executives say.

Speakers at the Reuters Global Investment Outlook 2013 Summit this week said efforts to create a workable shareholder forum – as proposed in this summer’s Kay Review – could be hampered by the difficulty in working with shorter-term or secretive investors, who are an increasingly powerful shareholder force.

Nov 27, 2012

Hedge funds face profit headache in 2013

LONDON (Reuters) – Hedge funds’ glory days seem a long way off as they head into a tricky 2013, with bumper profits likely to remain elusive in markets now dominated by political and central bank action.

Speakers at the Reuters Global Investment 2013 Outlook Summit said the $2 trillion industry, which has disappointed investors with below-market returns this year and losses last year, faces a headache making money in an environment where markets are choppy and not as buoyant.

Nov 27, 2012

Greek debt deal turns hedge fund trade to gold

LONDON (Reuters) – For a few hedge funds, Greek debt is turning into one of the trades of the year.

News that Athens – backed by euro zone ministers and the International Monetary Fund – will buy back some its own debt from private investors sets a floor under the price of its bonds, handing many who picked them up at rock-bottom levels big gains.

Nov 27, 2012

CQS star Hintze eyes “totally mispriced” loans, debt

LONDON (Reuters) – CQS founder Michael Hintze, one of Europe’s most influential hedge fund managers, believes European loans and some corporate debt are “totally mispriced”, and says stocks look attractive.

Hintze, ranked sixth in this year’s Sunday Times Hedge Fund Rich List with a 580 million pound ($929 million) fortune, told the Reuters Global Investment 2013 Outlook Summit that next year offers plenty of opportunities for his CQS Directional Opportunities fund, which was up 29 percent in the first 10 months of 2012.