Hedge Fund News Wrap: Week Ending 07/17/15

Hedge Funds Reassess China After Market Free Fall

(DealBook) – It wasn’t long ago that hedge funds were preparing for one of the biggest openings into China in years. In November, foreign investors were for the first time able to buy and sell shares listed in the Shanghai market directly. It was a chance to ride the great China bull run. How times have changed.

Over the last month, trillions of dollars of value were wiped from the domestic market as stocks plunged by more than a third. The Chinese government has stepped in, issuing a series of increasingly aggressive moves to prop up the market. Hedge funds are now reassessing their positions and questioning the role of the government in China’s stock market.

Read the entire at DealBook
More coverage: Reuters and HedgeCo

Samsung Scrapes to Victory in Proxy Battle over $8 Billion Merger

(Reuters) – Samsung Group’s founding family on Friday scored a narrow win in a landmark proxy battle, fending off an activist investor opposed to an $8 billion deal that cements its grip as a new generation prepares to take the reins of South Korea’s biggest conglomerate.

At an often-heated shareholder meeting, investors in builder Samsung C&T Corp approved an all-share takeover offer from sister firm Cheil Industries Inc, Samsung’s de facto holding company – but only just. With the backing of two-thirds of votes cast needed for success, some 69.53 percent of shares voted supported the tie-up.

Read the entire at Reuters
More coverage: The Economist and The Financial Times

Puerto Rico Leaves Creditors Wanting More as Protests Hit Banks

(Bloomberg Business) – As demonstrators waved Puerto Rico flags, shook maracas and held signs that read “U.S. banks play roulette and the people pay the debt,” commonwealth officials won little support among investors for plans to restructure the island’s $72 billion debt burden.

Participants from among the more than 300 representatives of institutional investment firms, hedge funds and insurance companies that assembled at Citigroup Inc.’s New York headquarters Monday to hear Puerto Rico officials make their case said they were left with no new clarity on which of the island’s long-term obligations will undergo the most change. Officials have yet to say whether the cash-strapped island will repay bonds maturing in 19 days.

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