Video: Top Hedge Fund News Wrap – Week of 091012

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Top News In Brief

Independence and Bastille Day Fireworks But No Celebrations. There were more tough numbers coming out for the hedge fund industry, with redemptions up, hedge fund starts down, and lackluster returns.  Reuters reported that redemptions hit $7.4 bln in July, up from $4.2 bln in June, with the industry now managing an estimated $1.87 trillion, down from $2.4 trillion at peak. At the same time, pensions and investments online reported that Hedge fund launches in the second quarter declined 19% to 245, the lowest level of quarterly fund creation since the fourth quarter of 2010, according to new data released Thursday by Hedge Fund Research. Finally, Bloomberg reported that hedge fund climbed 0.7 percent in August across the industry. This brings overall fund performance to 2.6 percent for the year, still trailing the wider equity market which reached 9.9 percent returns over the same period.

No Performance Fees, Please. We’re English. Speaking of performance fees, an interesting report in Reuters about how mutual funds in the UK are avoiding hedge fund performance fee style arrangements. Apparently, investment advisors are steering their clients away from the funds that adopt this fee arrangement, because the high fees were not correlating with improved returns: Reuters

Moore is Less. As the Moore Capital Management LLC will cut jobs amid equity restructuring.

The Messiah Has Come… Wait, It’s Only Ray Dalio. Despite early reports that the higher power that created the universe had returned to earth to share an age of eternal peace and wisdom, it turns out it was only super star hedge fund manager Ray Dalio, found of the world’s largest macro hedge-fund firm Bridgewater, with $122 billion in total assets according to Bloomberg. Dalio told the throngs of devoted followers gathered at the Council of Foreign Relations in New York on Wednesday that the economy has come out of “intensive care,” giving the world some hope for the future.

Other Slightly Less Important News In Brief-er

Hedge Funds Make Big Bets On Commodities. The money held by hedge funds and other big speculators in commodities has hit a one-year high, with markets rallying in anticipation of U.S. and European economic stimulus efforts, trade data showed on Friday: Reuters

BlackRock Fined Over Investor Deposits. BlackRock, the world’s largest asset manager, was fined 9.5 million pounds ($15 million) by Britain’s financial regulator for failing to adequately protect client deposits: Reuters

Hedge Funds Lining Up To Block Warren. There was an interesting story in Bloomberg about hedge funds are putting money to keep Elizabeth Warren, the Democratic candidate for U.S. Senate in Massachusetts, from getting elected on a platform of reining in Wall Street.: Bloomberg

More Jobs Act Confusion. Hedge funds ask SEC for clear rules on verifying investor accreditation and to limit liability once solicitation and advertising of hedge funds is finalized.

The rating agency Fitch says hedge funds will face challenges with reinsurer strategy.

Fairfax case against Morgan Keegan & Co. and Exis Capital Management dismissed due to “negative false information”

Canadian telecoms provider Telus Corp. wins legal battle with US hedge fund Mason Capital Management LLC, Mason will appeal this decision (importance: court ruled that the hedge fund couldn’t hold a meeting of its shareholders to consider a proposal that could have thwarted the company’s share consolidation plan)

Photo credits in order of appearance: bayasaa, electrons_fishgils, ReeSaunders, David Hopkins Photography, digitalmoneyworld, DonkeyHotey