Friday, 3 August 2012

Update of 3rd August

These stories have been posted on
Citadel LLC, the $11bn AUM Chicago-based hedge fund group, has produced some great returns for investors over the long term. In the last calendar year, the two main multi-strategy funds, Kensington Global Strategies and Wellington Fund, both racked up gains of more than 20%. But Citadel has another reputation, aside from very good returns...
A recent article suggested that SWFs are exploring the possibility of buying asset management companies. Could hedge fund management companies be on their radar? The reasons given for buying asset managers are two-fold: to reduce fees and to ramp up investment expertise.
A recent article in the “New York Times” made a a big play about Avenue Capital’s strategic allocation of capital to Europe, which meets  the opportunistic and value-driven approach of founder Marc Lasry. The $3bn of capital is expected to be committed for 3 to 5 years, but is being drip-fed in at roughly $150m  a month .
Markets are funny places, and the things that happen there stranger still. Economic data has been getting steadily soggier from around the world and the eurozone crisis rumbles on, yet global bonds, equities and commodities have turned in sprightly returns for July.
In these treacherous times the degree of macro risk in markets is substantial and it is tempting to try to capture these opportunities. The confident macro trader will certainly argue for the opportunity while the fundamental investor may be confounded by factors beyond their considerations. One of the more controlled ways of investing in the current environment is event driven strategies.
On Monday, July 23rd 2012 2 Euro Zone nations acted in a manner that revealed panic and questionable judgement. In an attempt to prevent “speculative” trades depressing asset values Italy and Spain reintroduced a ban on short selling. This was a response to the tumble in the equity and bond markets.

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