Hedge Fund News Wrap: Week Ending 6/27/14

Hedge Fund Assets Rise to $3 Trillion

According to new data from eVestment, hedge fund assets under management have risen to a record of $3 trillion. May marks the fourth consecutive month in which hedge funds saw high inflows.


Regionally, $83.3 million was invested into American funds, $1.2 billion into European funds, while $0.93 billion and $0.14 billion were pulled out of Asian funds and emerging markets strategies, respectively.

Below is a detailed chart of eVestment’s data.



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Three Managers Leave Point72 

Three traders have left Point72 Asset Management, marking the family office’s first loss since it transitioned from the now-defunct hedge fund, SAC Capital Advisors.

Over the last week, three technology traders, Telis Bertsekas, Nina Hughes, and Michael Valentine, left the firm. According to FINalternatives, Bertsekas and Hughes co-managed several hundred million dollars for SAC and Point72, and Hughes was one of the few women who served as a portfolio manager at the firm.

The reason for their departures is unknown, but the New York Times reports that Bertsekas and Hughes may work together at another hedge fund in the near future.


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Valeant CEO Gets Paulson Backing 

The Chief Executive Officer of Valeant Pharmaceuticals International, Michael Pearson, announced that he was “delighted” by the support offered by hedge fund, Paulson & Co., in its $53 billion offer for Allergan Inc.

Paulson & Co.’s support, together with Pershing Square Capital, gives Valeant nearly half of the 25% shareholder support it requires in order to start a shareholder’s meeting regarding the takeover of Allergan Inc.

“We do believe we’ll get the 25%, and the majority we need to get the deal consummated,” Pearson said in an interview with BNN TV in Canada.

Initially, Allergan had rejected Valeant’s offer and refused to negotiate an agreement.

Paulson and Co. has a two percent stake in Allergan.


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Financial Post





Argentina Defies Court in Latest Move 

Argentina has been in a legal battle with some of the top hedge funds over bonds it has defaulted on more than ten years ago.

Judge Thomas P. Griesa of the Federal District Court in Manhattan ruled that Argentina could not make payments to its “main class bondholders” without also paying hedge fund firms what they allege they are owed.

However, Argentina seemed to defy the court, and on Thursday, it made a payment of $539 million with the Bank of New York Mellon in order to pay its main bondholders.

“This is a brazen step in violation of the court’s orders, and it warrants a swift and decisive response,” said Robert A. Cohen in a letter to the court, a representative of NML Capital, a unit of Elliot Management.

In 2001, Argentina defaulted on close to $100 billion of debt. According to The New York Times, most bondholders exchanged their defaulted securities for new bonds that were worth less than the original value of the bonds. Some bondholders, known as “holdouts,” wanted to be repaid in full and did not participate in the exchanges, such as Elliot Management.

The battle between Argentina and the hedge funds as prolonged for years, and the president of Argentina is known for referring to the hedge funds as, “vultures.”



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The Wall Street Journal