The Morning Brief: Highbridge’s Housing Call; Seattle’s Hedge Fund Backer
Highbridge Capital Management reported its owns 5.26 percent of homebuilder Beazer Homes. According to a regulatory filing, the hedge fund owns 642,000 shares of common stock; $400,299 aggregate principal amount of 7.5 percent mandatory convertible subordinated notes due 2013, convertible into 1,783,211 shares of common stock; 7.25 percent tangible equity units, convertible into 1,507,607 shares of common stock; and call rights to purchase 50,000 shares of common stock. The filing was made in a 13G, meaning it is a passive investment. At the end of the second quarter, it reported owning 50,000 shares of common stock of Beazer. Alas, Beazer’s stock closed down $0.11 to $17.17 on an otherwise strong day for the stock market.
Tilden Park Capital Management LP, a $1.1 billion in assets hedge fund founded by former Goldman Sachs trader Josh Birnbaum, is up 30 percent this year, placing him among the top performers year-to-date. Birnbaum is best noted for betting against the subprime mortgage market in 2007.
A hedge fund manager moved a giant step closer to realizing his dream of bringing a professional basketball and hockey team to Seattle. Local officials gave final approval to build a $490 million indoor arena. Hedge fund manager Chris Hansen is one among a few groups that want to build a $490 million arena near the stadiums where baseball’s Mariners and football’s Seahawks play with $200 million in public financing. Hansen’s partners include Magic Johnson and Microsoft CEO Steve Ballmer.
The investment management division of National Australia Bank tapped Diversified Global Asset Management to help expand its hedge fund exposure from more than $500 million to more than $1 billion. DGAM is a Toronto-based hedge funds-of-funds manager.