Morning Market, Hedge Fund and Private Equity News

Apr 10 2017 | 9:00am ET

Apr. 10, 2017. 

The Dow Jones industrial average projected three-point gain at 9 a.m. Monday. 

Markets continue to weigh ongoing geopolitical threats including growing tension between Russia and the United States over last week’s military strike on. Russia has said that U.S. intervention in Syria could “serious consequences.” 

Here's what else you need to know on Apr. 10, 2017. 

Today’s Institutional Watch List

Wells Fargo Claws Back Executive Pay

A six-month, independent investigation over its embarrassing sales scandal has led to a conclusion. Wells Fargo (WFC) has clawed back another $28 million from its former CEO John Stumpf. The company also clawed back $47 million from its community banking chief Carrie Tolstedt. In a 110-page report, the investigators concluded that the two executives were "too slow to investigate or critically challenge" the company’s sales strategies.

Pushing for a Spin Off

Activist investor Elliott Advisers is taking aim at BHP Billiton (BHP). The hedge firm announced a 4.1% stake in the $22 billion mining giant. Elliott wants the mining giant to spin off its oil and petroleum business into a separate public company in order to bolster its share value. In addition, Elliott is pushing for the firm to abandon its London Stock Exchange listing and bolster its buybacks. BHP has publicly challenged Elliott’s proposals.

Rate Normalization Set for 2017

Reuters reports that Wall Street’s top firms anticipate rate normalization in the year ahead. According to a survey released Friday, respondents said they expect the central bank to reduce its reinvestments in mortgage-backed securities and Treasuries. The effort is expected to be a part of the banks plans to reduce its $4.5 trillion balance sheet. Reuters writes that “five of 15 primary dealers, or banks that do business directly with the U.S. central bank, expected the Fed to start paring reinvestments by year end, while the rest forecast the central bank would do so by the end of the second quarter of 2018.”

Hedge Funds Are Under Pressure

In a brief but intriguing interview with "Bloomberg Surveillance,” Chenavari Financial Group CEO Loic Fery said that hedge fund industry is under pressure due to increased compliance costs and performance challenges. Fery said that he anticipates that hedge funds will fulfill their roles when we see increased normalization and volatility in the future. He also offers his insight European banks.

GAM Responds to RGR 

The battle between activist investor RGR Capital Advisers and Swiss asset manager GAM accelerated over the weekend. The activist fund argues that its target has failed to take its proposals to cut costs seriously. However, GAM responded by disclosing two meetings between its leadership and RGR in December and February. 

Monday Morning Reading List

Bloomberg: Hedge Fund Strife Gives Rich Families New Swagger With Managers

Reuters: Investors flock to 'macro' hedge funds, but not only the old guard

Fox Business: Samsung Boss Goes to Trial

Finalternatives: OCERS Latest Pension Fund To Trim Active Investment Managers

Barron’s: Elliott Associates Sees an Opening for Roadrunner Transportation

Bloomberg: Barclays Blows the Whistle on Its Own CEO

Check back for more hedge fund, private equity and market news throughout the day and be sure to read Friday's edition of The Daily Alpha. 

Check ou Friday’s edition right here – Real Talk On Jim Cramer, Wells Fargo, Fintech and Jeff Merkley

 

 


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