This content is from: Portfolio

The Morning Brief: Chris Hansen’s Valiant Posts Another Losing Month

Chris Hansen’s Valiant Capital Partners L.P. hedge fund lost another 1 percent in July, bringing its loss for the year to more than 16 percent. The liquid fund lost 1.21 percent last month, while its less liquid side pockets lost just 0.06 percent. Hansen is a so-called Tiger Grandcub, because he spent seven years working for John Griffin, founder of Blue Ridge Capital. Griffin worked for legendary hedge fund founder Julian Robertson’s Tiger Management.

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Tiger Global, founded by Tiger Cub Chase Coleman III, sold more than one million shares of TAL Education Group between June 10 and August 2 for between $10.75 and $12.70 per share. The hedge fund and private equity firm now owns 20.4 percent of the Chinese tutoring service.


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John Burbank’s Passport Capital has dumped its entire portfolio of agency mortgage debt. The $3 billion hedge-fund firm sold the debt, backed by U.S. government entities such as Freddie Mac or Ginnie Mae, in the second quarter, according to Bloomberg, citing the firm’s second quarter letter to investors. “When we recognized prospects in the agency space had changed, we cut risk,” Passport stated in the letter, dated July 31.

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Phil Falcone is back in the news, and as usual with the embattled hedge fund manager, it is not for good reasons. His firm, Harbinger Capital Partners, has sued Dish Network chairman Charlie Ergen, accusing him of fraud for the way he acquired the debt of LightSquared in order to take control of the telecommunications firm, according to the Wall Street Journal. LightSquared, of course, is the company that is 96 percent owned by Falcone and Harbinger and that planned to build a nationwide wirelesss network. However, it filed for bankruptcy in May 2012. In its lawsuit, Harbinger claims Ergen used a front company to buy enough LightSquared debt to secure control of the company and take it out of bankruptcy.

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The average hedge fund rose 1.17 percent in July, bringing its gain for the year to 4.32 percent, according to industry tracker eVestment. Long-short equity is leading the way through the first seven months, up 8.32 percent. On the other hand, commodity strategies are the biggest loser so far this year, down 4.13 percent.

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