Hedge Fund News Wrap: Week Ending 04/17/15

Ben Bernanke Will Work With Citadel, a Hedge Fund, as an Adviser

(DealBook) – For eight years, Ben S. Bernanke, the former Federal Reserve chairman, was steward of the world’s largest economy. Now he has signed on to advise one of Wall Street’s biggest hedge funds.

Mr. Bernanke will become a senior adviser to Citadel, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin. He will offer his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globe.

It is the latest and most prominent move by a Washington insider through the revolving door into the financial industry. Investors are increasingly looking for guidance on how to navigate an uncertain economic environment in the aftermath of the financial crisis and are willing to pay top dollar to former officials like Mr. Bernanke.

Read the entire article at DealBook
More coverage: The Wall Street Journal and Forbes

Proxy Firm Backs One Elliott Nominee in Alliance Trust Battle

(Bloomberg Business) – A proxy voting company is backing one of three directors that Paul Singer’s Elliott Advisors wants installed on Alliance Trust Plc’s board, the third investor group this week to weigh in on the hedge fund’s battle to shake up the 127-year-old British money manager.

Glass, Lewis & Co. advised shareholders to vote in favor of Peter Chambers, the former chief executive officer of Legal & General Investment Management, according to a report sent to clients. The San Francisco-based firm advised investors vote against Elliott’s other nominees — Anthony Brooke and Rory Macnamara — citing “governance issues.”

“We believe that the election of one dissident nominee -– namely, Mr Chambers -– is acceptable,” Glass Lewis wrote in the report. He “appears to us to have an extensive background in fund management and investment banking, which should make him well qualified to serve on the board.”

Read the entire article at Bloomberg Business
More coverage: Reuters and Financial Times

Foreigners Jump into Hong Kong Stock Rally

(Reuters) – Foreign investors are jumping on board Hong Kong’s record stock market rally signaling growing international confidence that a bonanza sparked by China inflows is set to continue and could suck-up funds from other Asian markets.

Hong Kong’s main index hit seven-year highs last week as mainland investors snapped-up relatively cheap shares in the former British colony. Since last Wednesday, average daily turnover has reached a record of HK$253 billion($32.64 billion).

Between the beginning of April and Tuesday, the main bourse rose around 11 percent, peaking at 28,016 points on Monday.

The sharp increase was initially triggered by Beijing’s move earlier this month to encourage Chinese institutions, including mutual funds, to purchase Hong Kong shares via a Shanghai trading link. But in recent days international investors have begun to drive the rally.

Read the entire article at Reuters
More coverage: The Wall Street Journal