Hedge Fund News Wrap: Week Ending 01/02/15

(ValueWalk) – When bond yields plunged on October 15, 2014, dropping from just above 2 percent to near 1.8 percent in a matter of minutes, the initial assumed culprit was a “fat finger mistake,” while others suspected high frequency trading. Many calculated that the event was so “rare” that it was between a seven to ten sigma event. According to a new study from the U.S. Federal Reserve, hedge fund making large adjustments to their interest rate exposure early in the morning was involved. Still others questioned the market liquidity, as a change from large banks providing liquidity to Hedge Funds has been occurring in some markets.

Read the entire article at ValueWalk
More coverage: FINalternatives and Reuters

Investors Eye 2015 with Big Appetite for Hedge Funds: Report

(Reuters) – Wealthy investors are poised to put at least $90 billion into hedge funds next year, even after returns have largely been lackluster this year, research firm eVestment said on Tuesday.

Fresh demand from pension funds, endowments, and insurers looking for alternatives to traditional stock and bond holdings will fuel next year’s flows, the researchers wrote in a report.

“Will institutional investors maintain their investments and continue to allocate more to hedge funds in 2015 … The short answer is yes,” they wrote, adding “We expect asset flows into hedge funds of at least between $90 billion and $110 billion in 2015.” Hedge funds manage roughly $3 trillion in assets.

Read the entire article at Reuters
More coverage: Hedgeweek and Automated Trader

Hedge Fund Jana Partners Dumps Plunging Civeo Shares After Winning Board Seats In October

(Forbes) – Barry Rosenstein-run Jana Partners has sold all of its shares in oilfield accommodations specialist Civeo Corporation, the activist hedge fund disclosed in a filing on New Years Eve. That sale comes just over two months after the firm nominated three independent directors to Civeo’s board, and it ends a tumultuous investment that plunged over over 80% since the company was spun from drilling equipment provider Oil States International in May.

In a filing with the Securities and Exchange Commission, Jana disclosed it sold over 12 million Civeo shares at a little over $4 apiece on December 30. Those sales came a day after Civeo dramatically cut its 2015 guidance amid a rout in oil prices that caused vacancy rates at the firm’s lodges serving far flung oilfields in Western Canada and the U.S. to rise as much as 50%. The company also suspended its dividend and announced that it would reduce headcount by between 30%-to-45% from beginning of year levels in North America.

Read the entire at Forbes
More coverage: Bloomberg News and CNBC