Tuesday, 21 October 2014
Last updated 10 hours ago
Oct 18 2010 | 12:04pm ET
Hedge fund BlueBay Asset Management has agreed to be acquired by the Royal Bank of Canada for more than US$1.5 billion.
RBC will pay £4.85 per share for the London-based hedge fund, a nearly 30% premium to the stock's closing price Friday. BlueBay boasts some US$40 billion in assets under management, and last month announced plans to launch a series of new hedge funds, including emerging-market, high-yield and European government bond offerings.
The deal, the second major hedge fund acquisition of the year following Man Group's US$1.6 billion buyout of GLG Partners, which closed just last week, is expected to be completed by the end of the year.
"RBC's strength and stability make it an ideal partner for BlueBay," the hedge fund's CEO, Hugh Willis, said. "Its commitment to its clients and its high standards of business practices mirror our own and lie at the heart of the excellent cultural fit between our firms."
RBC said it would finance the acquisition from its cash reserves and that the deal would not have a material impact on its near-term earnings. Perella Weinberg Partners advised RBC on the acquisition. Spencer House Advisors and Credit Suisse handled matters for BlueBay.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...