Hedge Fund Focus: October 7, 2016

Ryan FitzGibbon  Follow

In case you missed them, here are the hot topics in the hedge fund space this week…

What a week! With big developments rocking the industry last week, we saw further fallout with Omega Advisors and Och-Ziff due to their insider trading and bribery investigations as well as more developments in the regulation arena that may continue to wreak havoc on the industry: 

New Developments

Continued Omega and Och-Ziff Swirl

Performance Overview: With September over, performance figures began to roll in and it looks like we can count the month as a success, at least according to HFR:

 Indices

 Strategies

 Managers

Fees remained a major topic of discussion (shocking) as the head of Britain’s biggest retail broker, Hargreaves Lansdown, came out urging regulators to oversee asset management fees by regulating what costs managers pass on to investors as well as be forcing them to be more transparent about what is being charged. Additionally, and very surprisingly, an Odey alum is charging a 1 percent management fee and zero percent performance fee on his new fund.

Weekly Read: Hedge Fund Intelligence wrote an interesting piece about the industry’s golden goose – pension funds – exploring if this relationship will continue or come to an end, especially for fund of hedge funds, in light of performance issues and the transparency concerns that are amassing.

The activist arena was also abuzz this week after a bit of a hiatus with Elliott reviving its attack on Samsung via a new approach. The luminary activist is proposing “that Samsung essentially split its electronics business into two separate companies as part of a broader reshaping of the business.” Last year the goliath manager failed to thwart a merger between two of Samsung’s affiliates. Additionally, there was a lot of talk about activism in Europe and how it is ramping up to U.S. levels as the number of attacks have doubled in the last year.

Quick Things to Know: Despite a plethora of issues and revelations that a waffle on Brexit cost the firm significantly, Brevan Howard’s CEO publicly confirmed the flailing hedge fund will not close its doors; Citadel gobbled up a team from BlueCrest who ran nearly a fifth of the firm’s business; and fund of hedge funds were slightly up in August, paring back yearly losses but still lagging single managers.

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