Hess threw another bone to shareholders in its continuing attempt to fend off New York-based hedge fund firm Elliott Management’s proxy fight. The energy giant said it would separate the chairman and CEO roles after the annual meeting, which is scheduled for this Thursday, May 16.
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Steve Cohen’s SAC Capital is giving investors who submitted redemptions a few extra weeks to make their final decision. The embattled hedge fund manager has pushed back the deadline to June 3 from May 16. Cohen is reportedly trying to convince investors he has gotten much tougher with his portfolio managers and has instituted more onerous compliance policies. There is also speculation that investors are awaiting final resolution of a civil settlement with the Securities and Exchange Commission.
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The Lodestone Natural Resources hedge fund is shutting down after two of its founders were arrested back in February in connection with an insider trading probe. The $100 million, London-based fund invests in commodity stocks. U.K. regulators had earlier questioned chief investment officer Tim Whyte and founding partner Carl Linderum, but neither has been charged with a crime.
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How well did hedge funds fare last month? It all depends upon who is keeping score. For example, UBS tells clients in a monthly newsletter that the average hedge fund returned 1.4 percent in April. Asian hedge funds performed the best — up 4.4 percent — thanks to the surge in Japanese stocks and the fall in the yen. CTAs, which lost money the two previous years, were up 2.6 percent, while macro funds climbed 1.4 percent. Hennessee Group’s Hedge Fund Index rose just 0.28 percent in April, bringing its year-to-date gain to 5.09 percent.
Hennessee points out that correlation among stocks has fallen to its lowest level in six years. According to the data tracking firm, correlation fell from a high of 80 percent in 2012 to just 60 percent. “Any company-specific factors are now more likely to drive stock selection than any other time in the past 6 years,” said Lee Hennessee, managing principal of Hennessee Group, in a press release. “This should benefit hedge fund managers.”
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Credit Suisse lowered its price target on SandRidge Energy to $4.80 from $5.40, asserting the stock got pricier at a time when the company said it will let production on a key asset decline. You may recall that back in March TPG-Axon Capital Management called off its plans for a proxy fight when the company reached a settlement that included the expansion of the board by four seats, giving the new slots to the hedge fund.
