Wednesday, 1 October 2014
Last updated 12 min ago
Feb 9 2009 | 1:11am ET
Not all hedge funds got back on target last month, as it were.
Pershing Square Capital Management’s fund that invests exclusively in Target Corp. securities plummeted another 40.1% last month after dropping 68% in 2008. The fund has lost 89.5% of the $2 billion it raised in 2007.
In the wake of the disastrous performance, the activist hedge fund shop plans to allow Pershing Square IV investors to withdraw what little money they have left in the fund, The Wall Street Journal reports. New York-based Pershing Square originally planned to allow investors to redeem only 15% of their investment.
Still, if founder William Ackman is to be believed, the firm is not giving up on Target.
“While PSIV and Target stock have declined materially, we still believe our fundamental investment case for Target stock will ultimately be realized, although not within the original timeframe we had initially estimated,” Ackman wrote in a Feb. 5 letter to investors.
Risking charges of throwing good money after bad, Ackman himself pledged $25 million of his own money to the fund, and said the firm’s employees and board members will also pony up. He also said he had restructured the fund, investing in longer-dated options that could pay off big if Target shares almost double in price over the next two years.
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...