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The Morning Brief: Third Point to Wind Down Reinsurance Fund

Third Point Reinsurance, the reinsurance arm of Daniel Loeb’s New York-based hedge fund firm Third Point, announced it is winding down the Third Point Reinsurance Opportunities Fund, its catastrophe reinsurance fund management business. Under the deal, Third Point Re will contribute certain resources to its partner in the deal, Hiscox Insurance Company (Bermuda) Limited, and plans to invest in Hiscox’s Kiskadee insurance-linked securities. In addition, Manoj Gupta, the lead portfolio manager for Third Point Reinsurance Investment Management, will serve as an advisor to Kiskadee Investment Managers. He will also continue with his underwriting and corporate roles with Third Point Re. Most of Third Point Re’s investable assets are managed by Third Point.


Early investors in Alibaba Group Holding, accounting for 8.1 million shares, were allowed to start unloading their stock as of last Friday, Bloomberg reported. However, the shares wound up rising on the day, by 0.65 percent, to close at $109.96. What’s more, the stock remains just shy of its high of $120. Part of the reason the stock has held up is because the 8.1 million shares only account for 1.6 percent of the total shares that are now able to trade, Bloomberg points out. However, expiration dates for much larger numbers of shares are coming up next year. For example, in March another 429 million shares held by insiders will be eligible to enter the market, while 1.6 billion shares will become eligible to trade in September. Alibaba is popular with hedge fund managers, with some 106 hedge funds holding it as of the end of September.


At least two London hedge fund firms have boosted their short positions in European companies that are deemed to be very sensitive to declining oil prices, according to Bloomberg. In the past month, BlueCrest Capital Management increased its short positions in Genel Energy, SBM, Lundin, Ophir Energy and Petrofac, according to the report, citing data compiled by Bloomberg and European regulators. Marshall Wace lifted its negative bets against SBM, Lundin, Technip, CGG, Fugro, Amec Foster Wheeler, Tullow Oil and Petrofac.


Ricky Sandler’s Eminence Capital raised its position in The Men’s Wearhouse to 11.99 percent after the clothing company agreed to amend its standstill agreement with the hedge fund firm. The earlier deal restricted New York-based Eminence from owning more than 10 percent of the shares. It now can own up to 12 percent of the stock. Back in June, The Men’s Wearhouse agreed to acquire Jos. A. Bank for $1.8 billion after a protracted takeover battle, which Sandler tried to influence. His Eminence Fund is up 11.6 percent for the year through December 12.

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