John Paulson, Winner in 2008 Crisis, Latest to Quit Hedge Funds

Just over a decade after John Paulson shot to fame and fortune, he’s become the latest big-name money manager to quit the hedge-fund business, saying this week he’s converting his firm into a family office.

Paulson never managed to sustain the success and notoriety he found by betting against the housing market in the run up to the last financial crisis. Now, in the midst of an another period of economic turmoil, he’s returning outside investors’ money to focus on his own fortune, which the Bloomberg Billionaires Index puts at $4.4 billion...

BlackRock’s Alternatives Chief Has a $23 Billion War Chest

Jim Barry is in fighting spirits even as the ferocious market rebound drains his pool of cheap investable assets.

The chief investment officer at BlackRock Inc.’s alternative investment unit is looking to deploy some of his $23 billion cash war chest on companies laid low by the pandemic. He’s sizing up new opportunities in distressed real estate, and private debt and equity.

While the market rebound is enriching corporate valuations, the economic carnage the world over is creating all manner of cross-asset prizes, Barry said in an interview...

Tribune Publishing in Talks to Give Hedge Fund Alden Global Another Board Seat

Tribune Publishing Co. is in talks to add the co-founder of Alden Global Capital LLC to its board as part of an agreement that would prevent the hedge fund from making a hostile bid to buy the rest of the newspaper company in the near future, according to people familiar with the matter.

Randall Smith, who runs Alden alongside Heath Freeman, is in talks to join the board, the people said. The deal would also extend a standstill agreement between Tribune and Alden that expires Tuesday. The length of the extension being discussed...

FCA Probes H2O Over Windhorst Bonds

The UK’s financial regulator is probing H2O Asset Management’s sale of illiquid bonds and stocks back to controversial German financier Lars Windhorst, adding to the heightened scrutiny of transactions in obscure securities at a former star of the European investment industry.

The Financial Conduct Authority last week confirmed that it was “in active discussions” with H2O over the asset sales...

Hedge Fund Manager Trips Up as Asset Downgrades Hit CLO

Hedge fund King Street Capital Management has fallen foul of the slew of asset downgrades hitting CLO portfolios amid the coronavirus outbreak.

The firm, which issues CLOs through its Rockwood Capital portfolio manager division, failed a portfolio test on its second European CLO at a key date in the transaction’s cycle, known as the effective date. In doing so, it is the first European CLO rated by Moody’s Investors Service to fail to meet all the portfolio requirements at this milestone...

Senrigan shutters event-driven platform

Founder Nick Taylor and team are joining Citadel as first PM hires in Asia for Surveyor Capital group...

Monsoon Capital shuts after steep asset decline

At its peak the India-focused firm managed $1.6bn...

$400 Million Korea Hedge Fund Halts Redemptions Amid Fraud Probe

A South Korean hedge fund has halted redemptions by some investors amid accusations by a local brokerage of fraudulently promising low-risk investment.

Seoul-based Optimus Asset Management, a 522 billion won ($432 million) hedge fund specializing in alternative assets, has frozen withdrawals totaling at least $41 million from some of its funds since last Thursday, said two people familiar with the matter, who asked not...

Quants Sound Alarm as Everyone Chases Same Alternative Data

When the pandemic struck, George Mussalli used social media and Google searches to suss out which companies were gripped by a sudden collapse in sales.

By scraping bulletin boards for clues on staff morale, the quant at PanAgora Asset Management dug deep for high-frequency insights to navigate his strategies through the crash.

“We retooled areas of our model to give us more real-time data,” said the head of equity research...

GAM Issues Fourth Profit Warning in Two Years

Swiss asset management firm GAM expects a net loss of CHF400m (£339m) for H1 2020 as the firm has been forced to book a CHF410m (£348m) non-cash impairment, which was the result of goodwill payments related to its acquisitions of UBS in 1999 and Julius Baer 2005.

GAM, which reviewed these payments on Friday (19 June), said it took this decision as a result of the global coronavirus pandemic. Excluding the writedown, the firm would have expected a pre-tax loss of CHF3m (£2.5m) during the first half of this year compared to a CHF2.1 (£1.8m) profit during H1 2019...