This content is from: Portfolio

The Morning Brief: Bridgewater Funds Are a Mixed Bag

Bridgewater Associates, the world’s largest hedge fund firm, continues to post mixed results in its main funds. All Weather, the Westport, Connecticut firm’s risk parity fund, boosted its gains in May by about 40 basis points — or 0.40 percent — and is now up 5.48 percent for the year. On the other hand, its larger Pure Alpha II fund slipped slightly and is now down about 9.10 percent for the year. Pure Alpha Major Markets gained 3.99 percent in May but is still down 5.5 percent for the year.

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Och-Ziff Capital Management Group’s OZ Master Fund posted a gain of 1.67 percent in May. As a result, the multistrategy fund cut its loss for the year to 1.22 percent. The firm’s OZ Asia Master Fund lost 0.67 percent last month and is now down 2.88 percent for the year, while its OZ Europe Master Fund surged 2.81 percent and is now off by just 0.19 percent for the year. The New York hedge fund firm also said total assets under management grew by $400 million in the past month, to $42.4 billion.

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Among smaller funds, Mark Kingdon’s Kingdon Global Long/Short Equity fund gained 5.24 percent in May, cutting its loss for the year to 3.16 percent. The firm’s Kingdon Credit Master Fund rose 2.58 percent last month, bringing its gains for the year to 2.56 percent.

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Gramercy Funds Management is turning up the heat on Peru. The emerging markets specialist, which owns a stake in Peruvian Agrarian Land Reform Bonds, announced it filed a $1.6 billion claim against the South American country alleging it has violated a U.S.-Peru Trade Promotion Agreement. In making the announcement, Gramercy asserts that Peru has “indirectly expropriated Gramercy’s investment” in the bonds and has violated certain articles of the Agreement that adversely impact the investment firm. “For several years, Gramercy has attempted to engage in negotiations with the Peruvian government to find a solution for the Land Bond debt,” it states in a press release. “The government has consistently declined to enter into serious discussions on this matter.”

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Kyle Bass’s Hayman Capital was one of a number of blue-chip investors to participate in the $45 million round of funding for Ionic Security, a data protection and control company. Other new investors in the company include Amazon.com and Goldman Sachs.

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Starboard Value continues to reduce its stake in Insperity, cutting its position to 8.5 percent of the provider of human resources services. Last month, Insperity and Starboard reached a deal whereby the company agreed to appoint to tis board a director nominated by the hedge fund firm. Insperity’s board also agreed to launch a search for an additional independent director.

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A construction worker died following an accident at the East Hampton Village property owned by JANA Partners founder Barry Rosenstein. According to the East Hampton Star, Vitor Nobre, a mason, fell about 12 feet onto a concrete floor. Rosenstein reportedly paid $147 million for the property in 2014. “We are deeply saddened by this tragedy. Our thoughts and prayers go out to his family,” the Rosenstein family reportedly said in a statement.

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