This content is from: Portfolio

The Morning Brief: Jeffrey Ubben’s ValueAct Gets $200M from Garden State; SAC Capital Bets on Stage Stores

The New Jersey State Investment Council has invested $200 million with Jeff Ubben’s ValueAct Co-Invest International fund. In November 2011 the Council had invested $100 million in another ValueAct Capital fund, ValueAct Capital Partners II. New Jersey is not paying a management fee on committed or invested capital. When combined with the existing investment in ValueAct Capital Partners, the blended management fee will be 0.6 percent on invested capital. There will be a 10 percent performance fee that will only be paid after an annualized hurdle rate of return of 8 percent on the investor’s capital. The fund describes the commitment as an “opportunity to expand investment with successful, experienced hedge fund manager.” New Jersey’s investment team disclosed that its investment in ValueAct Capital Partners has generated a 21.09 percent return from November 2011 to February 28, 2013.

Two Deutsche Bank proprietary debt traders have left their firms for hedge funds. According to Bloomberg News, mortgage-debt trader John Roach is moving to BlueCrest Capital Management, while Michael Boyle, who traded commercial mortgage securities, recently joined Tilden Park Capital Management.

Alan Howard’s BH Macro Fund is up just 0.17 percent for the month through March 22, putting the multistrategy fund up 3.53 percent for the year.

Steve Cohen’s SAC Capital disclosed it owns 5.5 percent of Stage Stores, an operator of 864 department stores and off-price stores in 40 states with a market capitalization of $827 million. SAC said in its filing that its stake in the company is passive.

Hedge funds focused on the Asia-Pacific region outperformed those that focused on other parts of the world. According to Preqin, Asia-Pacific funds posted gains of 3.97 percent and 2.18 percent in January and February, respectively. This compares to North American and European hedge funds, which gained just 0.61 percent and 1.24 percent in February, respectively.

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