One year ago
»» Bridgewater Associates, the largest hedge fund firm in the Americas, amassed $3 billion from existing investors for a new fund with a strategy similar to that managed by its flagship Bridgewater Pure Alpha fund.
The new fund, Bridgewater Pure Alpha Major Markets Trading, was targeted toward those who wanted to reinvest gains paid out to them from the original Pure Alpha, which had returned 27.39% in 2010. Major Markets has grown quickly from one year ago, and now manages $15 billion.
The original Pure Alpha fund reported a 16.05% gain in 2011, compared with a 0.95% gain for the AR Macro Index.
Bridgewater declined to comment.
See also: The return of the mega launch, Ray Dalio’s radical truth (March 2011 AR cover story)
»» Candlewood Investment Group, the $840 million credit shop that spun out of Credit Suisse’s asset management division in 2010, launched a second fund.
The Candlewood Structured Credit Fund, which invests in various asset-backed securities and collateralized debt obligations, has had a blockbuster first year. Co-managed by Gregory Richter and Brian Herr, the fund was up in every one of its first twelve months to gain 25.66% in 2011 (data here) compared with the 2.18% rise of the AR Credit Index.
Candlewood declined to comment.
Five years ago
»» The bankruptcy trustee for Northwest Airlines shot down a request by Owl Creek Asset Management to create a shareholders’ committee.
The $6.4 billion firm, which then owned 5% of the airline, had been lobbying to have equity investors more fairly represented in the bankruptcy proceedings, alleging that credit holders had been unfairly prioritized. After its demand was denied, Jeff Altman’s fund kept up the pressure with a call for a new board of directors and a public letter to the CEO. Months later, Owl Creek ended its battle, receiving equity in the post-bankrupt carrier.
Owl Creek’s activism has beaten the AR benchmark during the past five years. Its flagship fund has produced a total return 22.64% from January 2007 through yearend 2011 compared with 15.22% for the AR Event-Driven Index during that period.
Owl Creek did not respond to a request for comment.
See also: AR Database listing for Owl Creek funds, Owl Creek’s Jeffrey Altman prepares students to think globally
