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The Morning Brief: Brevan Howard Is Latest Firm to Cut Fees
More fallout in the war on hedge fund fees. Brevan Howard Capital Management said it will waive its management fee related to any performance-related growth generated by its BH Macro fund. The new waiver took effect on October 3. The publicly-traded fund invests virtually all of its assets in the firm’s flagship macro hedge fund, Brevan Howard Master Fund. The firm also said it will not charge a management fee on performance-related growth in the flagship macro fund. BH Macro is up 0.64 percent this month through October 14. This moved the fund back into the black for the year, up 0.49 percent.
Jim Chanos, the founder of New York-based Kynikos Associates, told CNBC he is still short Tesla Motors, asserting he is “dumbfounded again” that it is moving forward with its merger with Solar City despite refusing to lend money to the company on a senior basis this past summer. “What does that tell you about their view of the risk if the deal goes through,” Chanos said. “This is just perplexing,” he added, asserting that Solar City “is not a high tech company, it’s a roofer and a consumer finance company.” He says the only reason the deal makes sense is to “bail out the insiders.”
Nelson Peltz, a founding partner of New York-based activist Trian Fund Management, said in a CNBC interview he expects to see some growth in Europe this year. He added that he sees no reason for an interest rate hike, stressing that there is no need to have a stronger dollar. “Who can afford more interest?” he said in the interview. “I mean, there’s not a country in the world that can afford more interest. We certainly don’t need any more interest payments.”
BlueMountain Capital Management disclosed it owns 6.2 percent of Avista Healthcare Public Acquisition Corp., a blank check company that recently went public.
Shares of hedge fund favorite Expedia jumped another 1.70 percent on Wednesday and are now up more than 6 percent over the past six trading sessions. At the end of the second quarter, at least 69 hedge funds held a position in the online travel company. In addition, it was the second most concentrated hedge fund stock in the S&P 500, with 25 percent of its market capitalization held by hedge funds, including Jason Karp’s Tourbillon Capital Partners, the largest hedge fund investor in the company.