Thursday, 2 October 2014
Last updated 29 min ago
Mar 3 2014 | 10:41am ET
A pair of prominent hedge funds are finding the discounts at closed-end mutual funds irresistible.
Saba Capital Management and Pine River Capital Management have invested more than $1 billion in closed-end debt funds, Bloomberg News reports. Saba has been the much more active of the two, investing $847.3 million since last year, according to regulatory filings.
Among the funds favored by the two firms are those managed by giants BlackRock and Pacific Investment Management Co.
Traditional closed-end debt fund investors have been fleeing the vehicles after the Federal Reserve began to taper its stimulus programs last year. Those outflows have led to the biggest discount to net-asset values in five years, according to Thomas J. Herzfeld Advisors; Pine River's purchases averaged a 9.1% discount.
It is unclear what Saba and Pine River plan for the funds. While they could be betting on a bounce-back from the depths, activist hedge funds in the past have sought to remove closed-end funds' management or to have the funds liquidated, to capitalize on the NAV discount.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...