Reuters reports that some of the biggest names in hedge funds lost money in November, as hedge funds around the world dropped money for the sixth month in a row.
According to the news agency, activist investor Dan Loeb told investors that his Third Point Offshore fund dropped 2.6% in November (28.24% in the year through November), whilst James Pallotta's Raptor Global Fund fell 1.51% last month (17.36%), and Martin Hughes' Tosca Fund fell 5.15% (67.54%).
And Bloomberg reports that, according to two unnamed people familiar with the situation, Citadel Investment Group lost 13% in November, taking the year-to-date decline to 47%. Bloomberg also reports that D.E. Shaw has capped redemptions from its Composite and Oculus funds, while Farallon Capital Management has limited withdrawals, but expects to resume redemptions as early as January. Fortress Investment Group has also halted redemptions from its Drawbridge Global Macro fund.
Reuters reports that Lehman Brothers holdings has agreed to sell its investment management business, which includes jewel in the crown Neuberger Berman, to ex-Lehman executives, who have acquired a 51% stake in the unit.
Finally, The Financial Times reports that bankers will take a 75% stake in New Star Asset Management in a debt-for-equity swap that will all but wipe-out ordinary shareholders. Founder and CEO John Duffield said: 'The cost of this restructuring is regrettably a substantial dilution for ordinary shareholders, including me....we have to recognise that there is no other option to ensure the stability of the business'. Duffield is now expected to take a back seat as the restructuring unfolds, and is thought likely to soon leave the firm.
Please use the 'E-Mail' button immediately under the article title to send this item to a friend.
Have something to tell us about this article?