Every afternoon we provides an update on global market levels, economic news, and hedge fund news.
* US: Dow: 13001.56 (0.58%), S&P 500: 1371.97 (0.37%), NASDAQ: 2961.60 (-0.30%)
Welcome to our latest 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 Point72 Asset Management losing about 10% in January, Millennium Management on a hiring spree, and hedge fund industry's assets under management swell to nearly Read More
* Europe: CAC: 3169.32 (2.24%), DAX: 6590.41 (1.02%), FTSE: 5709.49 (0.77%).
* Asia-Pacific: Australia: 4360.40 (0.18%), China: 2388.83 (0.01%), Hong Kong: 20677.16 (0.26%), India: 5222.65 (0.42%), Japan: 9468.04 (-0.78%).
* Metals: Gold: 1643.80 (0.69%), Silver: 30.75 (0.70%), Copper: 3.67 (1.28%)
* Energy: Crude Oil: 103.55 (0.43%), Natural Gas: 1.98 (-1.59%)
* Commodities: Corn: 6.08 (-0.73%), Soya Bean: 13.52 (0.78%), Wheat: 6.32 (-0.08%)
* Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3196 (0.30%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6144 (0.08%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 81.3300 (0.18%)
* 10 year US Treasury: 1.973% (0.039)
Market and Economy News Update
U.S. markets end higher: Markets closed higher amid better-than-estimated earnings at a handful of blue chips companies, but tech stocks ended lower, weighed down by Netflix, Inc. (NASDAQ:NFLX) ‘s disappointing outlook. The Dow Jones Industrial Average (INDEXDJX:.DJI) ended the day 0.6 percent higher at 13001.56, while the S&P 500 (INDEXSP:.INX) 0.4 percent to 1371.97. The NASDAQ Composite (INDEXNASDAQ:.IXIC) ended 0.3 percent lower.
Oil rises: Oil rose in New York but Brent oil slipped as home prices dropped at a slower pace in February. Crude oil for May delivery gained 0.4 percent to $103.52 a barrel on the New York Mercantile Exchange. Brent oil for June settlement dropped 0.5 percent to end the session at $118.16 a barrel on the London-based ICE Futures Europe exchange.
Company News Update
* Apple Inc. (NASDAQ:AAPL) posted fiscal second-quarter earnings excluding items of $12.30 per share, and revenue of $39.2 billion, that easily beat Wall Street’s expectations.
* International Business Machines Corp. (NYSE:IBM), the world’s biggest computer-services provider, approved a $7 billion share buyback program and increased its quarterly cash dividend by 13 percent to 85 cents a share.
* United States Steel Corporation (NYSE:X) reported a first quarter net loss of $219 million, or $1.52 per share, compared with a net loss of $86 million, or 60 cents a share, in the same quarter last year, but excluding a loss on the sale of a Serbian plant, profit was 67 cents a share, which was better than average analysts’ estimate of 49 cents a share.
* Networking equipment vendor Juniper Networks, Inc. (NYSE:JNPR) reported first-quarter profit of 16 cents excluding some items, topping the average analyst estimate of 13 cents per share.
* RadioShack Corporation (NYSE:RSH), the consumer-electronics retailer reported first-quarter net loss of $8 million, or 8 cents a share, compared with net income of $35.1 million, or 33 cents a share, from the year ago period. Analysts were looking for a profit of 5 cents a share.
* Coach, Inc. (NYSE:COH), the largest U.S. luxury handbag maker, said fiscal third-quarter earnings rose 21 percent, boosted by strong sales in the U.S. and China, and the company also raised its dividend 33 percent.
* Carlisle Companies, Inc. (NYSE:CSL), the maker of construction materials, tires and trailers, reported first-quarter net income of $60 million, or 94 cents per share, from $33.4 million, or 53 cents per share, in the same quarter last year, beating the street expectations of a profit of 61 cents per share.
* Chocolate maker The Hershey Company (NYSE:HSY) posted a higher-than-expected first-quarter profit and boosted its full-year forecast, as higher prices and cost cutting helped offset rising ingredient costs.
* Parker Hannifin Corporation (NYSE:PH) said profit rose to better than expected $312.1 million, or $2.01 per share, in the fiscal third quarter, from $279.6 million, or $1.68 per share, a year ago. The company also boosted its full-year adjusted earnings forecast to at least $7.30 a share.
* Symantec Corporation (NASDAQ:SYMC), the maker of computer security software, lowered its revenue and earnings guidance for the fiscal fourth quarter, citing an increase in contracts with deferred revenue.
Hedge Fund News Update
* According to a new study by the Centre for Hedge Fund Research at Imperial College in London, hedge funds have significantly outperformed equities, bonds and commodities over the last 17 years.
* London-based commodities hedge fund RK Capital Management will launch a new long-only metals fund, Red Kite Real Return Fund, on June 1, and is hoping to raise as much as US$1 billion for the fund.
* The Brevan Howard Multi-Strategy Master Fund has grown to more than $2.3 billion from around $1.1 billion in September last year, according to a report by Reuters. The Brevan Howard Multi-Strategy Master Fund invests in the group’s hugely successful $27 billion Brevan Master Fund, which is now shut to new cash.
* The University of Oxford has teamed up with the world’s largest hedge fund group, the Man Group Plc (LON:EMG), to launch a ‘virtual data lab’ intended to help researchers deepen their understanding of financial systems.
* The GlobeOp Forward Redemption Indicator, which measures forward redemptions as a percentage of GlobeOp assets under administration, has recorded a reading of 2.00 percent in April 2012, the second lowest month on record, and down from 3.23 percent in March.
* Activist hedge fund Starboard Value has nominated three members to Massachusetts-based software business company Progress Software Corporation’s (NASDAQ:PRGS) eight-member board.
* A New York hedge fund Mason Capital is opposing Canadian telecoms group, Telus Corporation (USA) (NYSE:TU)’s proposal to create a single class share structure. Mason holds almost 20 per cent of Telus’s common shares
* The Axiom UCITS Alternative Investable Index Fund, invests in an index of EU-regulated hedge funds, has eliminated its 1 percent management fee and replaced it with a 10 percent performance fee.
* Kenmar Group and Olympia Capital Management have agreed to merge, and the new firm will be named Kenmar Olympia Group, with a combined asset under management of $3.3 billion.
* Abydos Capital management, the new hedge fund launched by BlueGold Capital Management co-founder Jean-Louis Le Mee, is set to debut with around $30m on 1 June.