Hedge Fund News Wrap: Week Ending 12/26/14

(Reuters) – The hedge fund industry’s biggest performances in 2014 came from some of its smallest, least-known players, according to data from research firm Simplify.

The results add heft to years of studies by industry researchers and academics showing smaller funds tend to beat the industry’s big-name titans, in part because their managers often provide more focus and take bigger risks.

Mumbai-based Alchemy Capital Management ranked No. 1 on Simplify’s list as manager Hiren Ved’s $53 million long-short equity fund gained 63 percent through November, with a focus on Indian stocks, according to Simplify. More recent numbers are not yet available.

Read the entire article at Reuters
More coverage: FINalternatives

Meredith Whitney Fund Sued by Billionaire Platt’s BlueCrest

(Bloomberg News) – Meredith Whitney’s hedge fund is being sued by its biggest investor, a fund connected to billionaire Michael Platt’s BlueCrest Capital Management, as demands to recoup money spill into court, according to people with knowledge of the dispute.

Platt’s BlueCrest Capital Opportunities brought the lawsuit in Bermuda last week, seeking to get back its $46 million stake in Whitney’s American Revival Fund, the people said, asking for anonymity because the case isn’t public. Her hedge fund slid 11 percent this year through November despite a rising stock market.

The suit shows how quickly relations have soured since last year, when Platt helped Whitney, once one of Wall Street’s most famous analysts, start her new firm, Kenbelle Capital. The BlueCrest fund invested $50 million that November, then asked to redeem this October, expecting payment around the end of last month, the people said.

Read the entire article at Bloomberg News
More coverage: ValueWalk and Business Insider

FINRA to perform regulatory services for CBOE and C2

(HedgeWeek) – The Financial Industry Regulatory Authority (FINRA is to perform the majority of the The Chicago Board Options Exchange (CBOE) and C2 Options Exchanges’ (C2) regulatory services.

Additionally, CBOE entered into a separate agreement with FINRA, under which CBOE will assign to FINRA its responsibility to perform regulatory services for the Options Regulatory Surveillance Authority (ORSA), the central organisation facilitating collaboration in insider trading surveillance and investigations for all US options exchanges.

Read the entire article at HedgeWeek
More coverage: Reuters and Traders Magazine