So much for mediocre performance: Hedge fund employees should make more money this year than they did in 2015, according to Reuters, thanks to larger bonuses. The wire service cited a report from Glocap Search, an investment management headhunter that keeps tabs on hiring and pay trends at hedge funds. Money managers at top-performing funds should expect to see their bonuses rise as much as 11 percent, while those at outfits with lackluster results should see theirs drop as much as 7 percent.“There have been a lot of reports about hedge fund compensation being down this year but that is misleading,” Adam Zoia, CEO of Glocap, told Reuters. Keep in mind that these pay trends are unrelated to Alpha’s Rich List, which ranks the highest-earning hedge fund managers, whose compensation usually ranges from several billion dollars at the top end of the list down to about $100 million.
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Starboard Value has sold more than 200,000 shares of Insperity, reducing its stake in the human resources services provider to 6 percent. In late May, Insperity and Starboard reached another compromise agreement whereby John Morphy, a director nominated by the activist hedge fund firm, would be appointed to the board. Insperity’s board said it would launch a search for an additional independent director. The deal also called for the board to make changes to the composition of its standing committees.
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Tiger Grandcub Bridger Management has disclosed that it owns 8 percent of molecular diagnostics specialist Trovagene. The filing was made in a 13G, which means the investment is passive. New York–based Bridger was founded by Roberto Mignone, who in turn once worked at John Griffin’s Blue Ridge Capital, a firm with roots to Julian Robertson Jr.’s Tiger Management Corp.WORDS.
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Shares of hedge fund and activist favorite Allison Transmission Holdings surged more than 3 percent yesterday, to $31.89, after the company announced a new $1 billion stock repurchase program. The maker of fully automatic transmissions for commercial vehicles added that it expects to complete its current $500 million stock repurchase by the end of the year. Allison said it decided to launch the new program after consulting with several stockholders, among them Ashe Capital Management, Longview Asset Management, and ValueAct Capital. Hedge fund firm ValueAct is the largest investor, with about 11.4 percent of the company’s shares; other top-ten hedge fund holders include New York-based D.E. Shaw & Co. and Farallon Capital Management. In December 2014, Allison announced a “cooperation agreement” with ValueAct.
New York Adam Zoia John Morphy Roberto Mignone John Griffin
