Concentration in hedge fund portfolios has been rising throughout the year and approached a record high during the third quarter. In fact, the only time concentration was higher was during the fourth quarter of 2018. Hedge Funds Are Highly Convicted But With Minimal Crowding According to Goldman Sachs' Hedge Fund Trend Monitor for the third Read More
- US: Dow: 12736.60 (-0.28%), S&P 500: 1352.46 (-0.16%), NASDAQ: 2931.77 (-0.19%)
- Europe: CAC: 3156.80 (-0.38%), DAX: 6387.57 (-0.35%), FTSE: 5627.33 (-0.63%).
- Asia-Pacific: Australia: 4118.30 (-0.95%), China: 2170.81 (-2.43%), Hong Kong: 19428.09 (-1.92%), India: 5275.15 (-0.79%), Japan: 8896.88 (-1.39%).
- Metals: Gold: 1589.10 (0.65%), Silver: 27.44 (1.95%), Copper: 3.43 (0.65%)
- Energy: Crude Oil: 85.99 (1.82%), Natural Gas: 2.88 (3.85%)
- Commodities: Corn: 7.30 (5.34%), Soya Bean: 15.47 (2.79%), Wheat: 8.43 (2.68%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2316 (-0.23%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5523 (-0.23%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.5550 (-0.12%)
- 10 year US Treasury: 1.512% (-0.037)
Market and Economy News Update
U.S. markets end lower: U.S. markets closed lower on Monday, but managed to bounce off the lows of the day, amid renewed global growth concerns. The Dow Jones Industrial Average (INDEXDJX:.DJI) declined 0.28 percent to end at 12,736.29. The S&P 500 (INDEXSP:.INX) slipped 2.22 points, or 0.16 percent, to finish at 1,352.46, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) lost 5.56 points, or 0.19 percent, to close at 2,931.77.
Oil prices rise: Oil prices gained on Monday for the first time in three days as a labor strike and a planned lockout by companies threatened to completely shut all offshore oil and gas production in Norway. Crude oil for August delivery rose 1.9 percent, to settle at $85.99 a barrel on the New York Mercantile Exchange. Brent oil for August settlement jumped 2.2 percent to $100.32 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- Alcoa Inc. (NYSE:AA), the largest US aluminum producer, unofficially kicked off the U.S. earnings season and reported second-quarter profit, excluding certain items, of 6 cents a share that managed to beat the average analysts’ estimate by one cent. Revenue came in at $5.96 billion that also topped Street expectations of $5.81 billion.
- Intel Corporation (NASDAQ:INTC) has agreed to invest as much as $4.1 billion in Dutch semiconductor equipment maker, ASML Holding N.V. (ADR) (NASDAQ:ASML) (AMS:ASML), in exchange for an equity stake of about 15 percent.
- Facebook Inc (NASDAQ:FB) is planning to launch a jobs posting board, according to a report from FINS.com, which is owned by News Corp.
- Advanced Micro Devices, Inc. (NYSE:AMD) lowered its second-quarter revenue outlook, amid weaker than expected sales in China and Europe.
- PriceSmart, Inc. (NASDAQ:PSMT) posted third quarter earnings of 52 cents a share on sales of $507 million that missed analysts’ estimates.
- Anglo-Dutch energy company Royal Dutch Shell plc (NYSE:RDS.A) (LON:RDSA) topped the Fortune Magazine’s ranking of the world’s 500 largest corporations. Exxon Mobil Corporation (NYSE:XOM) came in second, while Wal-Mart Stores, Inc. (NYSE:WMT) was placed third.
- Software giant Microsoft Corporation (NASDAQ:MSFT) will buy multi-touch large display producer, Perceptive Pixel Inc, for an undisclosed amount.
- Patriot Coal Corporation (NYSE:PCX) has filed for reorganization under Chapter 11 of the Bankruptcy Code.
- Internet-gear maker Ubiquiti Networks Inc (NASDAQ:UBNT) ended the day 4.2 percent higher after a U.S. federal court provided a favorable ruling against an alleged counterfeiter.
- Surgical products developer Mako Surgical Corp. (NASDAQ:MAKO) reported lower than expected sales of its surgical robot for the second straight quarter.
- Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) reported strong June sales for its multiple sclerosis drug, Acthar.
- Clothing company Warnaco Group Inc (NYSE:WRC) said that it is reviewing its European operations amid the ongoing economic crisis in the continent.
- estaurant chain Denny’s Corporation (NASDAQ:DENN) has entered into an agreement with Great China International Group to open 50 restaurants in southern China over the next decade and half.
- Bridgepoint Education Inc (NYSE:BPI), the for-profit higher education company, plunged 34 percent, after it was denied accreditation for its Ashford University by a regional accreditor.
- Special purpose acquisition company, Universal Business Payment Solutions Acquisition Corp (NASDAQ:UBPS), will buy three payment companies in a cash and stock deal valued at $179 million.
- Pigment maker Tronox Incorporated (PINK:TROX) plunged 14 percent in trade today, after Australian rival Iluka Resources Limited (ASX:ILU), cut its full year sales forecasts for titanium dioxide, in the face of deteriorating global economic conditions. Titanium dioxide is a key pigment used to make paints.
- Luminex Corporation (NASDAQ:LMNX) agreed to acquire privately-held molecular diagnostics company, GenturaDx, for $50 million in cash.
- Business advisory company FTI Consulting, Inc. (NYSE:FCN) closed 6 percent lower after announcing late Friday that it would cut about 3 percent of its workforce and take a $28 million pretax charge in the second quarter.
Hedge Fund News Update
- Hedge fund manager Steve Cohen’s SAC Capital Advisors LP has launched a new Bermuda-based reinsurer, SAC Re Holdings Ltd., joining a growing list of hedge funds that have ventured into the insurance sector in recent months.
- New York hedge fund Elliott Management, which bought a 10 percent stake in German engineering company, Schuler AG (ETR:SCUN), is drumming up support for its opposition to the company being acquired by Austrian rival Andritz’s (ANDR), Reuters reported.
- Milwaukee-based hedge fund managers Stark Investments, will layoff 59 employees, after last month announcing the closure of its multi-strategy hedge funds.
- According to a new survey by financial services consultancy, Towers Watson, and the Financial Times, the top 100 alternative investment managers globally manage more than $3 trillion in assets, of which hedge funds make up 21 percent, or $643 billion.
- Capital Group One is launching its second Euro hedge fund, after the massive success of its first Euro hedge fund launched in 2007.
- Market research firm Preqin has estimated that 61 percent of hedge fund capital comes from big institutional investors.
Brokerage Upgrades and Downgrades on Monday, July 09, 2012
- Alkermes Plc (NASDAQ:ALKS) was upgraded to “outperform” from “neutral” at Zacks with a target price of $21.
- DiamondRock Hospitality Company (NYSE:DRH) was raised to “outperform” from “buy” by analysts at Goldman Sachs.
- Mueller Water Products, Inc. (NYSE:MWA) was lifted to “buy” from “hold” at Brean Murray with a price target of $5.1.
- Neostem Inc. (NYSEAMEX:NBS) was raised to “strong buy” from “buy” by analysts at WBB Securities with a target price of $2.
- Sirona Dental Systems, Inc. (NASDAQ:SIRO) was upgraded to “outperform” from “neutral” by analysts at Robert W. Baird with a price target of $53.
- Triumph Group Inc (NYSE:TGI) was lifted to “buy” from “hold” at Standpoint Research with a price target of $72.
- T. Rowe Price Group, Inc. (NASDAQ:TROW) was raised to “buy” from “hold” by analysts at Sandler O’Neill.
- UDR, Inc. (NYSE:UDR) was upgraded to “hold” from “sell” by analysts at Cantor Fitzgerald.
- Bridgepoint Education Inc (NYSE:BPI) was cut to “market perform” from “outperform” by analysts at Barrington Research.
- Cousins Properties Inc (NYSE:CUZ) was downgraded to “sell” from “hold” by analysts at Cantor Fitzgerald.
- Janus Capital Group Inc. (NYSE:JNS) was lowered to “sell” from “hold” at Sandler O’Neill.
- Medifast, Inc. (NYSE:MED) was cut to “hold” from “buy” by analysts at Standpoint Research.
- PetSmart, Inc. (NASDAQ:PETM) was downgraded to “hold” from “buy” at Needham.
- Public Storage (NYSE:PSA) was lowered to “neutral” from “outperform” by analysts at Robert W. Baird with a target price of $148.
- Western Alliance Bancorporation (NYSE:WAL) was cut to “perform” from “outperform” by analysts at Oppenheimer.
- Wintrust Financial (NASDAQ:WTFC) was downgraded to “perform” from “outperform” by analysts at Oppenheimer with a price target of $36.