One year ago
Elliott Management founder Paul Singer batted aside talk of
small funds outperforming large ones, saying at the SALT
Conference in Las Vegas that his firm's growth to $19.2 billion
from $1 million had been an "unalloyed positive."
Since then, the firm has enlarged even further to $21.9
billion as of the end of April. According to investor
documents, the flagship Elliott International fund was up 12.4%
last year and pushed forward a further 3.7% this year through
April, compared with respective gains of 12.60% and 6.01% for
Absolute Return Distressed Index during those periods.
Elliott spokesman Peter Truell declined to comment.
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>> The founders of Gotham Capital, JANA Partners,
Omega Advisors and T2 Partners gave a host of
value stock picks at the SALT Conference.
Gotham's selections were weighted toward tech stocks like
Microsoft (+8.41% in the past year) and health picks like
Wellpoint (+17.71%). JANA's included Energizer (+35.44%),
Coca-Cola Enterprises (+31.88%) and McGraw-Hill (+16.68%).
Omega chose Apple (-19.03%), among others, and advised staying
away from U.S. government bonds (+2.68%, per the Dow Jones
Credit Suisse 10-Year Treasury Index).
Whitney Tilson of T2 Partners said to avoid European banks.
That move would have been ill-advised; the iShares MSCI Europe
Financials Sector ETF that tracks such entities has returned
40.69% during the past year.
Long LOV and short Salesforce at the Value Investing
Five years ago
Two top bank prop desk traders left with plans to start
their own hedge funds.
Rick Rieder, Lehman Brothers' head of global principal
strategies, set up credit fund R3 Capital Management.
BlackRock bought R3 in April 2009, and Rieder is now "chief
investment officer of fixed income, fundamental portfolios, and
head of the firm's global credit business and credit
strategies, multi-sector, and mortgage groups," according
to his profile on the firm's website. Performance
information for R3 was not immediately available, but the
BlackRock Fixed Income Global Alpha fund is up 5.32% this year
through May 6, according to a performance update distributed by
HSBC Alternative Investment Group. Rieder was not available for
Things went differently for Boris Ehsani, former head of
Merrill Lynch's principal credit group. He left the firm
following the bank's decision to cancel plans to spin off his
division as a fund, but did not wind up launching independently
in the midst of the financial crisis. He has since been
investing privately, along with some of his former team.
"I had to make a decision in terms of our business and
knowing where our edge was," Ehsani told Absolute
Return this week. "Here I was facing a situation where I
could only raise $75 million to $100 million, and that didn't
fit with how we invested."
He said he continues to take meetings with potential anchor
investors for a future launch.