Hedge Fund News Wrap: Week Ending 06/05/15

An Activist Investor Takes Aim at Bid for Samsung

(DealBook) – One of America’s biggest activist hedge funds is making a rare foray into Asia, betting that it can alter the restructuring plans of the heavyweight Samsung.

The move by Elliott Management, run by Paul E. Singer, essentially threatens efforts by the family that controls the South Korean tech giant to consolidate its hold over a sprawling corporate empire. The fund, which bought a 7.1 percent stake in a Samsung Group company that Samsung had planned to sell to another unit, objected on Thursday to what it said was a low sale price.

Elliott’s move is an unusual glimpse of investor activism in a region where such campaigns are seldom seen and where they have met mixed results. Family or state shareholders wield control of some of the biggest public companies in Asia and often bristle at outsiders’ telling them how to run their businesses.

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

Hedge Fund Titan Ackman Takes New Stake in Nomad Foods

Billionaire investor William Ackman’s hedge fund has taken a position in Nomad Foods Limited, a young company created to make acquisitions in the food industry, according to a release made by the London Stock Exchange on Tuesday.

According to the filing, Ackman’s $20 billion Pershing Square Capital Management owns 22 percent of Nomad, a so-called special purpose acquisition company. Pershing Square crossed the 20 percent threshold on the Nomad stake on May 26, according to the filing.

As one of the hedge fund industry’s most successful activist investors, Ackman’s picks are closely watched by the market ,and often a company’s share price will climb as he begins pushing for improvements.

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

The Hedge Fund ‘$1 billion club’ Has Grown

The number of global investors with $1 billion or more invested in hedge funds has climbed to a total of 227 over the last year, even as a number of high-profile pension funds withdrew from the space.

Over the past 12 months, 51 new investors joined the “$1 billion club” — or the group of institutional investors that have put at least $1 billion of their cash to work in hedge funds — new data from alternative asset research firm Preqin showed.

Amy Bensted, head of hedge fund products at Preqin, noted that the hedge fund industry had generated “mediocre performance” over the last year.

“Although perhaps not the sole cause, a handful of high-profile pension funds have publically announced their intention to scale back their hedge fund allocations,” she said.

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