- US: Dow: 12623.63 (-0.29%), S&P 500: 1311.17 (-0.39%), NASDAQ: 2813.46 (-0.11%)
- Europe: CAC: 3265.64 (-1.63%), DAX: 6444.45 (-1.05%), FTSE: 5671.09 (-1.10%).
- Asia:China: 2285.04 (0.00%),Hong Kong: 20160.41 (-1.69%),India: 5087.30 (-2.26%),Japan: 8793.05 (-0.55%)
- Metals: Gold: 1729.70 (-0.14%), Silver: 33.53 (-0.77%), Copper: 3.82 (-1.67%)
- Energy: Crude Oil: 98.62 (-0.94%), Natural Gas: 2.75 (-0.11%)
- Commodities: Corn: 6.31 (-1.71%), Soya Bean: 11.86 (-2.69%), Wheat: 6.44 (-0.54%)
- Currency: EUR/USD: 1.3121 (-0.75%), GBP/USD: 1.5688 (-0.30%), USD/JPY: 76.2800 (-0.55%)
- 10 year US Treasury: 1.823% (-0.066)
Welcome to our latest issue of issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Andurand's oil trading profits surge, Bridgewater profits from credit, and Tiger Cub Hedge Fund shuts down. Q1 2022 hedge fund letters, conferences Read More
Market News Update
Wall-Street down amid stalled Greek debt talks: U.S. stocks fell on Monday after Greece’s efforts to reach a debt restructuring with creditors stalled and European leaders struggled to change the market’s focus to a push for economic growth on the continent. As of 12:00 p.m. ET, the Dow Jones Industrial Average fell 79.7 points, or 0.63%, to 12581, the S&P 500 dipped 9.3 points, or 0.71%, to 1307 and the NASDAQ Composite skidded 10.9 points, or 0.39%, to 2806. http://money.cnn.com/2012/01/30/markets/markets_newyork/index.htm?iid=HP_LN
EU summit: European leaders struggled to reconcile austerity with growth on Monday at a summit due to approve a permanent rescue fund for the euro zone and put finishing touches to a German-driven pact for stricter budget discipline. http://www.cnbc.com/id/46189630
US Consumer spending flat in December: Consumer spending stalled in December as Americans took advantage of a jump in incomes to restore depleted savings, indicating households remain focused on repairing finances. Purchases were little changed after rising 0.1 percent the prior month, Commerce Department figures showed today in Washington.
Crude slips as Iran fears ease: Oil prices slipped on Monday in volatile trading a day after Iran postponed a parliamentary debate on a proposed halt to crude sales to the European Union. http://online.wsj.com/article/SB10001424052970204652904577192832952672996.html?mod=WSJ_Markets_MIDDLTopStories
Company News Update
- Financial stocks led the broad declines today, with Bank of America (BAC) the biggest decliner on the Dow. Bank of America Corp. decreased 3.1 percent after Goldman Sachs Group Inc. cut its recommendation. Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC) and Goldman Sachs (GS) were all down between 1% and 2%.
- Pep Boys (PBY) unveiled an $804 million deal to be taken private by the Gore Group in a transaction that values the retail auto-parts and service chain at a 24% premium.
- Wendy’s (WEN) sales climbed ahead of Wall Street expectations in the fourth quarter on renewed demand for its Dave’s Hot ‘N Juicy cheeseburger line, however its shares slipped on a 30% drop in profit.
- Gannett (GCI) revealed on Monday a 33% drop in fourth-quarter profit on restructuring and early retirement charges, however the results trumped Wall Street expectations as digital revenues and its CareerBuilder site grew more than expected.
- Swiss engineering group ABB has agreed to buy electrical components maker Thomas & Betts (TNB) for $3.9 billion to grow its portfolio of low-voltage products and further expand its geographic scope.
- Starbucks Corp (SBUX.O) will open its first coffee shops inIndia in August or September, a year later than originally planned, and aims to have 50 outlets by year-end through a tie-up with the Tata group, the country’s biggest business house.
- With Citigroup (C) back on its feet after a scary few years, Richard Parsons is reportedly thinking about stepping down as the financial giant’s chairman. According to The Wall-Street Journal, Parsons, 63, is expected to make a final decision on a possible exit by early March.
Hedge Fund News Update
- Large managed futures funds, including hedge funds, in the past week kept buying the tech-heavy NASDAQ 100 while reversing to cover their short positions in blue chip domestic stocks, according to an analysis by Merrill Lynch using data from the Commodity Futures Trading Commission as well as its own sources.
- Hedge fund giant Man Group plc announced today that it has signed the United Nations-backed Principles for Responsible Investment (PRI). The PRI is a framework designed to encourage sustainable investing by incorporating environmental, social and governance issues into investment decision-making and ownership practices. Globally, there are 988 signatories, with 126 of these in theUK. Man is the largest UK-based manager of alternative assets to become a signatory.
- New York-based hedge fund Elliott Management Corp has picked up a 9.4% stake in Patni Computer Systems, possibly scuppering iGate Corporation’s efforts to delist the Indian IT firm. Elliott has been buying small chunks of Indian technology outsourcer Patni Computer Systems since October.
- Hedge funds increased wagers on rising commodity prices to the most in two months and the rally in raw materials accelerated as the Federal Reserve pledged to keep borrowing costs low for three more years.
- Swiss fund of hedge funds manager Gottex said it would slash running costs by 15 percent in 2012 after assets fell by some $1 billion from a year earlier as some large clients pulled money in order to invest directly in hedge funds.
- BlueCrest Capital Management, one of Europe’s biggest hedge fund firms, is looking to raise more than 150 million pounds ($235 million) for a new listed feeder fund into its computer-driven BlueTrend fund, a source familiar with the matter said.
- Deutsche Bank is preparing to launch a fund to snap up investors’ illiquid or damaged holdings in hedge funds that have failed to recover since the financial crisis.
- The lead US lawyer representing the senior lenders in the restructure of shopping centre owner Centro says Australian companies have nothing to fear from US hedge funds buying up company debt, as they often have greater flexibility in what recapitalisation approaches they take.