If you were ever wondering how informal
investment alliances between hedge funds can coalesce around
great market ideas, it's worth considering the case of the
tag-team investors in General Physics Strategies. After a rough
ride over the last two years, the White Plains, New York -based
company has mounted a remarkable market turnaround, seeing its
share price double to about $7. But that likely wouldn't have
been the case if it weren't for the investment acumen of the
teams behind Bruce Kovner and Art Samberg.
It turns out that its largest shareholders is a veritable
tag-team of hedge fund investors. In fact, based on the most
recent firm filings with the U.S. Securities and Exchange
Commission the company's largest investors include Caxton
(7.7%) and Pequot Capital (5.0%).
The hedge funds entered a de facto investment alliance just
as General Physics Strategies was preparing...