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The Morning Brief: Coatue Launches Long-Only Offshore Fund

Philippe Laffont’s Coatue Management launched an offshore version of its long-only fund on October 1 with $18 million, according to a regulatory filing. The Coatue Long Only Offshore Fund has a minimum investment of $5 million. We earlier reported that the Tiger Cub’s New York–based hedge fund firm launched Coatue Long Only Partners in May with $45.5 million.

Activist hedge fund firm BaringtonCapital Group, along with other investors, is pushing Darden Restaurants to break into two companies, according to the Wall Street Journal. The group, which owns 2.8 percent of the stock, has already discussed its plan with the company. The group calls for one company to include the Olive Garden and Red Lobster restaurants and the other to include higher-growth chains such as Capital Grille.

Hedge funds rose an average 1.7 percent in September, bringing the average third quarter gain to 2.4 percent, according to industry tracker eVestment. For the first three quarters of the year, hedge funds rose an average of 5.7 percent. “September returns reflected the year-long trend of directional equity strategies outperforming the rest of the hedge fund industry on the back of developed market strength,” the Atlanta-based company states in its monthly report. It points out that long-short equity funds, up 10.59 percent for the first nine months, are poised to post their best year since 2009 and their second-best year since 2006, when they returned 26.7 percent and 15.3 percent, respectively.

Hayman Capital Management’s Kyle Bass told CNBC he is not hedged for a possible default on U.S. Treasuries, telling the audience there is not much an investor can do to prepare. “All the money you’re gonna have is under your pillow, and it probably won’t be worth as much as it is today,” he said. “But I don’t think we’re going to get to that apoplectic point in the U.S.”

Lawrence Schloss, the deputy comptroller for asset management and chief investment officer for the New York City Retirement Systems (NYCRS), was named president of New York asset management firm Angelo, Gordon. The super-secretive firm manages $24 billion in a variety of alternatives strategies, including hedge funds.

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