Monday, 20 October 2014
Last updated 3 hours ago
May 7 2012 | 4:07pm ET
D.E. Shaw Group is set to launch a hedge fund this summer with a focus on European loans.
The New York-based firm's Alkali Fund will debut in July. It is unclear how much D.E. Shaw has raised for the vehicle or how much it is seeking, but it will be helmed by the firm's four-year-old asset-backed securities team, which has generated $800 million in profits for a multi-strategy hedge fund.
Alkali will invest in residential mortgage-backed securities, consumer asset-backed debt, troubled loans, credit extensions and corporate credit, Bloomberg News reports. And while it will focus on Europe, the fund may also invest in the U.S. and other regions.
"We believe that a substantial portion of Alkali Fund's opportunity set will result from pressure on European banks to reduce their leverage," D.E. Shaw said in an April document. "We expect that a deleveraging in Europe will occur both actively through asset sales and passively through a reduction in origination of credit and willingness to roll over debt as it matures."
But, the firm added, the European Central Bank's new €1 trillion long-term refinancing program could limit "short-term opportunities."
In addition to the asset-backed team, the new fund will have the assistance of D.E. Shaw's corporate credit managers, and could set up joint ventures with servicers. Already, the firm has "established commercial relationships with a number of loan servicing partners, particularly in Spain and the United Kingdom."
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 ...