In the week ending 29 August, 2014, eVestment said total assets in hedge funds declined in July, dropping 0.49% to $3.017tln; the hedge fund industry consolidated last year (2013) with the number of funds falling by around a tenth from 2012 but assets under management rose to $2.6tln; private wealth poured money into hedge funds as assets reached $2.9tln, according to Preqin; Hutchin Hill Capital and Citadel are looking to increase their assets this year from pension funds; and alternative funds bucked the low-cost trend.
American Beacon Advisors launched the American Beacon AHL Managed Futures Strategy Fund; Ashok Jacob launched a new high-conviction global equities fund; Context Asset Management has filed for its second fund the Context Macro Opportunities fund; MJ Hudson has launched in Hong Kong to be led by new lateral partner Simon Fraser; and Gam has launched a Dublin-domiciled UCITs fund investing in U.S. mortgage-backed securities.
The Parker FX Index was up +0.82% in July (-0.57% YTD).
Hedge funds investing in India have become the world’s best performers this year; Lyxor AM said most hedge funds and CTAs posted positive returns last week as the markets started their rebound and progressively recouped their losses; HFR reported that emerging markets hedge funds navigated turmoil and uncertainty to produce strong gains; Bill Ackman gained 30% from his bets in Burger King and Herbalife; and Balyasny Asset Management posted dull returns in July.
Australia's Blue Sky reported a $6.24m profit and 69% revenue growth for the full year ending 30 June 2014.
Leucadia National is seeding $400m in Folger Hill Asset Management; and Blackstone Group is in talks to back a Hong Kong-based distressed fund started by Jason Brown.
Among investments, hedge funds have cut back on their riskier positions on concerns they are overvalued; junk-bond ETFs created for retail investors have been hijacked by hedge funds; Glenview Capital and Luxor Capital said they would raise their holdings on Punch Taverns’; John Burbank's Passport Capital trimmed its $500m China internet bet; Chatham Asset and Omega Charitable have agreed to convert more than $121m of American Media debt into equity in National Enquirer; Leslie Bocskor is creating a hedge fund to invest in medical and recreational marijuana companies; hedge funds have snapped up shares of Actavis, Facebook and Allergan in Q2; S&P Capital IQ reported that Apple & Allelrgan topped the list of hedge fund positions in Q2; Bridgewater Associates unloaded more than 90,000 shares of Warren Buffett's Berkshire Hathaway; and Lioneye Capital disclosed a 30% increase in its stake in Wausau Paper.
Short interest rose in Mallinckrodt but dropped in J C Penney; Essent Group is beating older rivals in the stock market as the U.S
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