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Julie Creswell, The New York Times, October 18, 2010
Jane Buchan is a rarity in the big-money boys’ club of hedge funds.
Amid the testosterone-fueled trading floors of Wall Street, Ms. Buchan has not only built a hugely successful hedge fund investment firm but also one that is, on paper, owned and run by women.
But questions have surfaced about whether her firm, Pacific Alternative Asset Management Company, is now — or ever was — controlled by women at all.
Daniel S. Och
Katherine Burton, Bloomberg News, October 29, 2010
Och-Ziff Capital Management Group LLC, Elliott Management Corp. and Comac Capital LLP pulled in almost a fifth of the money going into the $1.7 trillion hedge- fund industry this year, showing how selective the richest investors have become when allocating assets.
The three funds, which have combined assets of about $49 billion, together attracted $7.6 billion in net new money, according to investors, who asked not to be named because the funds are private. Investors poured $42.3 billion into hedge funds overall in the first nine months of 2010, about 2 percent of total assets, data from Chicago-based Hedge Fund Research Inc. show.
Hester Plumridge, The Wall Street Journal, October 29, 2010
Like a watched pot that never boils, hedge-fund consolidation has been a long time coming. But for anxious hedgies, the wait may soon be over. A tide of recent deals has seen alternative managers, including U.S.-listed GLG Partners and U.K.-listed Bluebay Asset Management, change hands for prices reminiscent of the industry's pre-Lehman heyday. Although mergers between hedge funds remain rare, banks are back in the market for acquisitions. More deals look likely.
So far this year, there has been $9.3 billion of hedge-fund and asset-management deals globally, according to Dealogic. That is below boom-time peaks, but it is more than 60% above 2009's total. The $1.7 billion Man Group acquisition of GLG and the $1.5 billion Royal Bank of Canada acquisition of Bluebay were priced at around 11-12 times earnings before interest, tax, deprecation and amortization, according to Morgan Stanley. That compares to average long-term sector transaction multiples of 9-11 times and multiples of around five times during the crisis.
Fin Alternatives, October 27, 2010
In the same week that a final deal was finally struck on new European Union hedge fund regulations, Threadneedle Asset Management said it would trade offshore for onshore for one of its top hedge funds.
The firm has launched a onshore version of its successful European Crescendo Fund called the Apex European Fund. The new vehicle is domiciled in Ireland and features the same management team as European Crescendo, led by Paul Doyle.
MAN Group will axe up to 200 jobs over the next year, according to sources close to the firm.
The world’s largest listed hedge fund has already identified $50m (£32m) of cost savings and a company spokesman told City A.M. it was inevitable some of this would be achieved by reducing headcount.
BRUSSELS — European Union finance ministers agreed Tuesday on rules to allow foreign hedge funds to do business across the 27-nation bloc — a deal that came as a relief to Britain, home of the European hedge fund industry.
The agreement, which still needs final approval of the European Parliament, also came as a relief to senior E.U. officials, who were seeking a show of unity ahead of a meeting of finance ministers of the Group of 20 nations.
Paul Singer
The New York Times, October 26, 2010
Elliott Management, the $17 billion hedge fund firm founded by Paul Singer, left, is promoting three executives to equity partners, Lawrence Delevingne of AR reports.
One of the three, Jon Pollock, will become co-chief investment officer along with Mr. Singer.
PR Newswire, October 26, 2010
NEW YORK, Oct. 26 /PRNewswire/ -- The Dow Jones Credit Suisse Hedge Fund Index team today released a new paper entitled, "Q3 2010 Hedge Fund Industry Review," which states that hedge funds have surpassed their previous high water marks and asset flows are returning to the industry.
Hedge Funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index ("the Index"), are up 5.98% year-to-date as of September 30. The positive performance has catapulted the industry past its previous high water mark, with the Index officially regaining all losses from the drawdown which occurred during the recent financial crisis. In addition, assets have returned to the space with inflows of over $14 billion, the largest since the first quarter of 2008.
Warren Buffett
Thomas Kaplan, The New York Times, October 26, 2010
When Warren E. Buffett announced on Monday that Todd Combs had been chosen as the heir apparent to manage the investments at his company, Berkshire Hathaway, the reaction was: Todd who?
“I’d never heard of the fellow,” said Meyer Shields, an analyst with Stifel Nicolaus who follows Berkshire. “I don’t mean that as a negative; I just literally had never heard of him.” Mr. Shields was hardly alone.
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