Hedge Fund News Wrap: Week Ending 11/14/14

India’s hedge fund index grew by 46%, outpacing those of all other countries for the year.  The index is concentrated in small to mid-sized performs and has benefited from the positive outlook on the Prime Minister’s proposals to stimulate economic growth.

However, there is still hesitation among many investors to enter the market because of the volatility that it has experienced in the past. India still receives only a fraction of the foreign money that is flowing into China.

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The Wall Street Journal




Allergan and Actavis discussing Merger

Allergan is working to close the gap in negotiations with Actavis to move forward with a sale and avoid a hostile takeover by Valeant Pharmaceuticals. There is urgency for a deal to be completed by the next shareholders meeting on December 18. Bill Ackman, who’s hedge fund is Allergan’s biggest shareholder, has scheduled the meeting attempting to vote out board members that do not support a deal with Valeant. Allergan is against being sold to Valeant, alleging that Valeant has little interest in the company’s future and is seeking a purchase to gain cash to decrease its debt load.

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Bloomberg News




Hedge Funds competing with Venture Capitalists

Hedge funds have poured $24 billion into startups this year, eclipsing the $8.6 billion invested last year.  Startups are requiring higher levels of capital as they are becoming more patient with going public, and hedge funds have the resources necessary to make the investment.  The startup arena is being reshaped as hedge funds seek mature startups for quick returns.  Venture capitalists, who are tied to the long-term growth of a company, are being pushed from late- to early-stage startups.  This shift has the potential to affect the odds of companies going public and change investors’ confidence in venture capital firms.

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