Top Hedge Fund News: June 25th – 29th

1. Hedge Funds Exit Trade Against JPMorgan

  • Hutchin Hill Capital, a hedge fund founded by a former Goldman Sachs trader, was among the firms on the other side of JPMorgan Chase’s huge trading loss. Like Saba Capital Management, they have both exited the trading position that helped bring about JPMorgan Chase’s multibillion-dollar loss.

2. New Hedge Fund to Focus on Mortgage Securities

  • A new fund at Tandem Global Management, run by former proprietary traders at the Royal Bank of Canada and Bank of America, joins several other investors in betting that securities related to mortgages will become more valuable.

3. Supreme Court Declines to Hear Funds’ Appeal

  • EM, a fund controlled by the billionaire Kenneth Dart, and NML, an affiliate of Elliott Associates, had tried to collect at least $2 billion from the government of Argentina. But the United States Supreme Count decline to hear their appeal.

4. Wealth Managers Affirm Commitment to Hedge Funds

  • Even as the hedge fund industry has posted disappointing results, wealth management firms like ABN Amro Private Banking and HSBC Private Bank recently expressed confidence in the sector.

5. Hedge Fund Expects a Profit on Greek Bonds

  • London-based hedge fund firm Adelante Asset Management has bought a position in the cut-price bonds of debt-laden Greece, betting that efforts by European politicians to restructure its debt mountain will provide a short-term boost to bond prices. Adelante believes it could make a return of roughly 35 percent after selling Greek bonds.

6. Investors Largely Stick With Hedge Funds in June

  • Request by clients to pull money from hedge funds have totaled 3.71 percent this June, lower than the tally of any June of the last four years, according to GlobeOp.