Sky Investments | Hedge Fund Tracker Notes

Sky Investments

Sky Investments | Hedge Fund Notes

Below please see our Hedge Fund Tracker Tool for Sky Investments Fund.

Resource #1: SKY Investment Group manages investment portfolios for individuals, families, businesses and charitable organizations. We focus on long term capital preservation, emphasizing investments in large, financially strong companies with leading positions in global business.

Our first commitment is to our clients. Understanding your financial goals, individual circumstances, and unique needs is central to successful investment management. source

Resource #2: At SKY, we invest based on some simple but timeless principles:
Earnings growth drives stock appreciation. SKY Investment Group believes that long-term earnings growth is the ultimate driver of share price appreciation. Therefore, preferred investment candidates are companies that we feel can grow their earnings faster than the economy for a prolonged period of time. Our preferred investment horizon is ten or more years, so we look for companies that dominate their industries and are likely to continue to do so.

Dividends are an important source of return. Dividends have historically accounted for about 50% of the returns generated by common stock and provide portfolio stability when financial markets turn difficult. As a result, we tend to favor companies that pay and increase dividends regularly. source

Resource #3: GREENWICH, CT, September 28, 2005 INDATA, a leading industry provider of software solutions for buyside firms including trade order management (OMS), compliance, portfolio accounting and front-to-back office, today announced that SKY Investment Group LLC, a Connecticut-based investment advisor which specializes in tax-sensitive core equity and balanced account management for private investors is now live with the INDATA I.M.S. system for portfolio modeling, pre & post trade compliance, trade order management, portfolio accounting and reporting. source

Resource #4: Sky sees scalability benefits with Indata
Sky Investment Group, a $200 million investment and wealth manager primarily serving private clients, has achieved operational scalability and automated data management capabilities following its implementation of Indata's Investment Management System (IMS) in late 2005.

Robert Bingham, president and chief investment officer at Sky Investment Group, launched the firm after holding portfolio man-agement positions at UBS and Paine Webber. He explains that he had prior experience at UBS using Advent Software technologies for asset and….source

Resource #5: At SKY, we invest based on some simple but timeless principles: Earnings growth drives stock appreciation. SKY Investment Group believes that long-term earnings growth is the ultimate driver of share price appreciation. Therefore, preferred investment candidates are companies that we feel can grow their earnings faster than the economy for a prolonged period of time. Our preferred investment horizon is ten or more years, so we look for companies that dominate their industries and are likely to continue to do so. Dividends are an important source of return. Dividends have historically accounted for about 50% of the returns generated by common stock and provide portfolio stability when financial markets turn difficult. As a result, we tend to favor companies that pay and increase dividends regularly. Management quality matters. One of the best measures of the effectiveness of corporate management is the trend in a company's profitability. source

Resource #6: Sky Investment Group, a $200 million investment and wealth manager primarily serving private clients, has achieved operational scalability and automated data management capabilities following its implementation of Indata's Investment Management System (IMS) in late 2005.

Robert Bingham, president and chief investment officer at Sky Investment Group, launched the firm after holding portfolio man-agement positions at UBS and Paine Webber. He explains that he had prior experience at UBS using Advent Software technologies for asset and ... source

Resource #7: "AFG provides our organization with the tools we need to make investment decisions based on a sound valuation discipline. We are a small investment management firm and use AFG as our “outsourced” valuation research team. I am continually struck by how much time the AFG staff has been willing to invest in our relationship. Their products and support have been invaluable to our stock selection success. " 

Robert Bingham, CFA, President and CIO
SKY Investment Group source

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Silvermine Partners LLC | Hedge Fund Tracker Notes

Silvermine Partners 

Silvermine Partners | Hedge Fund Notes

Our team is still building this specific set of Hedge Fund Tracker Notes, for completed manager profiles please see our Hedge Fund Tracker Tool.

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Sageview Capital LLC | Hedge Fund Tracker Notes

Sageview Capital LLC

Sageview Capital | Hedge Fund Notes


The following piece on Sageview Capital LLC is being published as part of our daily effort to track hedge funds in the industry. To review other hedge fund research notes please see our Hedge Fund Tracker Tool.

Resource #1: EverBank Financial Corp announced today that it has received a capital investment of approximately $100 million from an affiliate of Sageview Capital LP, a private investment firm. The capital will be used to support continued significant growth in EverBank’s core banking and mortgage business lines. “Sageview’s investment in EverBank will fuel a substantial expansion plan, enabling EverBank to grow our assets by over 30% to approximately $8 billion and dramatically expand our direct deposit customer base,” stated Rob Clements, Chairman and CEO of EverBank. “While other banks and financial institutions have needed to raise equity to shore up capital, EverBank has generated record year-to-date earnings and has a
strong balance sheet, which will enable us to deploy capital offensively to take advantage of recent market disruptions. After reviewing several alternatives, we selected Sageview as our capital partner. The principals at Sageview have a 20 year history of backing management teams to grow their businesses over the long term,” continued Clements. Under terms of the investment, Sageview will become the largest stockholder of EverBank Financial Corp. source

Resource #2: In August 2005, Blue Harbour Group, a small fund based in Connecticut, began buying shares in Laidlaw (NYSE:LI) , operator of America's largest fleet of yellow school buses and Greyhound coaches. The company was weighed down by Greyhound, which was struggling to compete with other forms of transport such as low-cost airlines, but the school bus business was doing well, churning out healthy cash-flow from a series of recurring long-term contracts.

More importantly for Blue Harbour, Laidlaw's management was receptive to change, including buy-backs and the possible separation of Greyhound. The fund earned a 40 per cent return on its investment in February 2007, when Britain's FirstGroup agreed to buy Laidlaw for $35.25 per share – well above the $23 per share Blue Harbour paid for its stake.

The success of that deal highlighted Blue Harbour's unusual strategy, which combines elements of both private equity investing and shareholder activism, and is becoming increasingly popular on Wall Street.

Sageview Capital, a fund based in Greenwich and , founded by KKR alumni Scott Stuart and Ned Gilhuly also puts money to work this way. Loosely called "private equity-style investing in the public markets", the strategy has been employed by US investors such as Warren Buffett and Eddie Lampert. source

Resource #3: It’s a reality that most of us know: The most difficult time to get
money from a bank is when you really need it. Now, banks themselves are in the same situation as they seek new sources of capital to shore up their finances. “It’s tough sledding out there,” said Nick Robbins, a corporate attorney at
Gunster Yoakley & Stewart in West Palm Beach. “You’ve got economic
slowdown concerns, a possible recession; you’ve got the [lending]
crisis that directly hits the banks. There’s not a lot of new appetite for initial
public offerings right now, which makes it hard for banks because there
are not a lot of investors out there.” Throw in everything from the weak
dollar to the election year climate, and “it makes companies and issuers want
to put their head in the sand.” Banks just aren’t seen as good investments
right now. BankUnited learned that the hard way when its efforts this
summer to raise $400 million through a public offering fell flat. BankAtlantic last
week postponed plans to raise a more modest $55 million in “non-regulatory”
capital. “Unfortunately, companies still have to grow regardless of the cycle,”
Robbins said. “For a lot of companies, whether it’s a bank or a technology
company, they’re having to look into alternative ways of financing the companies.”
source

Resource #4: ACE Aviation Holdings has announced that it has agreed to sell a 70 per cent interest in its wholly owned maintenance, repair and overhaul subsidiary ACTS LP to a consortium consisting of Sageview Capital, a private investment firm, and KKR Private Equity Investors, the publicly traded fund of Kohlberg Kravis Roberts and Co. The transaction implies an enterprise value of approximately $975m for 100 per cent of ACTS on a cash and debt free basis.
ACE will retain a 30 per cent equity interest in ACTS and Air Canada will remain its largest customer.

'This transaction is an important step in ACE's strategy of unlocking the value in all of our businesses,' said Robert Milton, Chairman, president and CEO of ACE. 'ACE's retained 30 per cent ownership of ACTS in partnership with Sageview and KKR is in line with our strategy of generating additional value for our shareholders by furthering the development of ACTS as a stand-alone, profitable entity. Among their many successes, KKR and Sageview have a track record of helping businesses that were once part of large conglomerates to become bigger, stronger and more competitive as independent organisations. Prime examples include Shoppers Drug Mart, Yellow Pages Group, and ITC, the former transmission business of Detroit Edison. They bring a long-term approach to creating lasting value, and together with them we believe great things will happen with ACTS.'

Scott Stuart, a founding partner of Sageview, said, 'ACTS has established itself as a premier maintenance, repair and overhaul organisation for the airline industry. With its highly talented management team and skilled labour force, the company is well positioned to build on its broad technical strengths and leadership position in the Canadian market for long-term growth. We and KKR look forward to leveraging our experience in building successful, independent businesses to assist ACTS' management in developing the business across the Americas.' source

Resource #5: The firm represents Sageview Capital and KKR in their acquisition of the maintenance, repair and overhaul operations of ACTS LP, an affiliate of ACE Aviation Holdings, Inc. and Air Canada. The transaction is structured as a sale of all of the assets of ACTS LP to a newly formed entity owned by an affiliate of Sageview Capital LLC and an affiliate of KKR Private Equity Investors, L.P. (Euronext Amsterdam: KPE), the publicly traded fund of KKR. ACE will acquire a 30% equity interest in the purchasing entity as part of the consideration and Air Canada will remain the largest customer of the business. The transaction implies an enterprise value of approximately $975 million (CAD) for 100% of ACTS on a cash and debt free basis.

The transaction represents the first buy-out transaction by Sageview Capital, which was founded in 2006 by Edward A. (“Ned”) Gilhuly and Scott M. Stuart, both former partners of KKR. KKR Private Equity Investors, L.P. is a Guernsey limited partnership that seeks to create long-term value by participating in private equity and opportunistic investments identified by KKR.

The attorneys working on the transaction include David Sorkin, Sean Rodgers, Andy Calder, Jeff DeMartino, Patricia Ruvalcaba, Steve Todrys, Katharine Moir, Alvin Brown, Aimee Adler, Marissa Wesely and Herbert Huang. source


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Pirate Capital | Hedge Fund Tracker Notes

Pirate Capital

Pirate Capital | Hedge Fund Notes


pirate capital hedge fundThe following piece on Pirate Capital Management is being published as part of our daily effort to track hedge funds in the industry. To review other hedge fund research notes please see our Hedge Fund Tracker Tool.

Resource #1: Tom Hudson and his pirates had a blunt message for Canadian ski-resort owner Intrawest Corp.: ``Surrender the Booty.''

It was March 2006, and Hudson, who runs a hedge fund firm called Pirate Capital LLC, spied treasure at Vancouver-based Intrawest. Its shares were trading at $32, and Hudson owned 5.8 million of them. That made him the company's biggest shareholder and, in his eyes, the boss.

So Norwalk, Connecticut-based Pirate, which flaunts its ``booty'' motto on baseball hats, demanded Intrawest put itself on the block.
``We urge you to fulfill your fiduciary duties to all shareholders by immediately initiating a sale of the entire company,'' Pirate analyst Stephanie Tran wrote to the board.
Five months later, Intrawest, with 24,800 employees, sold itself to New York-based Fortress Investment Group LLC for $1.8 billion, or $35 a share. Pirate had begun buying the stock at $15.80.

Hudson, 41, has made a fortune as the hedge fund Blackbeard, dragooning companies that don't make him enough money. A Wall Street outcast who was fired from Goldman Sachs Group Inc., Hudson buys stocks and then battles managements to drive prices in his favor. Since Hudson founded Pirate in May 2002, he and his crew have fought their way onto the boards of eight companies.

To enrich himself and his investors, Hudson has helped scuttle a proposed $7.9 billion takeover of Princeton, New Jersey-based NRG Energy Inc. by Atlanta-based Mirant Corp.; prompted Tampa, Florida-based coal and homebuilding company Walter Industries Inc. to spin off a unit for $400 million; and driven Houston-based Cornell Cos., which runs prisons, into the arms of a suitor. source

Resource #2: Pirate Capital LLC, the hedge-fund manager run by Thomas Hudson, barred withdrawals from its two Jolly Roger Activist funds after the firm's assets declined by almost 80 percent in the past year.

Pirate designated the four stocks held by the funds as ``special investments,'' meaning that clients won't be able to get money back until they are sold, according to an Aug. 31 letter to investors.

``In view of the activist nature of the funds, prior redemptions, market turmoil and their effect on the funds' individual positions and portfolios as a whole, we determined that the best way to manage the positions is through the Special Investment designation,'' Hudson said in the letter, a copy of which was obtained by Bloomberg News. The firm may also lift the designation without selling the stocks.
Hudson, 41, who founded Pirate in 2002, is known for acquiring stakes in companies and pushing management to make changes to boost their stock prices. The Norwalk, Connecticut- based firm's assets fell to $375 million as of Sept. 1 from $1.8 billion a year earlier.

The activist funds, which opened in January 2006, had $150 million in assets as of March 2006, according to a Pirate marketing document. They now oversee about $100 million. The funds lost about 1 percent for the year through June 30, according to a newsletter sent to investors.

The withdrawal halt doesn't apply to Pirate's two larger hedge funds, said Jeff Lloyd, a spokesman for the firm. Those funds invest in companies going through corporate events such as takeovers or bankruptcy reorganizations. One of those pools, the Jolly Roger Offshore Fund Ltd. gained 1.5 percent in the first half of 2007. source


Resource #3: (2.8.07) The Brink’s Company (BCO), a global provider of security and risk management services, and Pirate Capital LLC announced today that they have reached an agreement. As part of the agreement, Thomas R. Hudson Jr., managing member of Pirate Capital, will join the Brink’s board of directors at its upcoming February meeting. Hudson will serve on the board’s strategy, pension and finance, and executive committees. Pirate Capital owns approximately 8.5% of the outstanding common stock of Brink’s.

Michael T. Dan, chairman, president and chief executive officer of The Brink’s
Company, said: “We welcome Mr. Hudson to the board and look forward to his
contribution to the continued creation of additional value for all of our shareholders.” source

Resource #4: (4.7.07) “Arr. We’re taking on water. Ye’ll ne’er get me buried booty!” That’s the translation you get at the Web site talklikeapirateday.com for the phrase “taking on water,” and it may be a fitting description for what’s going on over at the swashbucklers at Pirate Capital.

That’s because it looks like the activist hedge fund is being forced to liquidate positions because some investors are demanding their money back.

Late Wednesday, Pirate Capital said it had liquidated its stake in Cornell Cos. It had 1,250,000 shares, or an 8.9% stake, of the Houston provider of correctional services as of March 29. The night before, CKE Restaurants said it had agreed to buy 4.07 million of its common shares, or about 6.1% stake, from Pirate Capital for $18.97 a share, or $77.2 million.

This activity was noted by Ken Squire, who runs 13D Monitor, a research service that tracks activist investing. He sent out an email to clients yesterday noting the following:

• That Pirate has made five Securities and Exchange Commission filings since March 21, reporting a sale of shares for a total exceeding $175 million.
• In two of those filings, Pirate disclosed that it had decreased its ownership below 5% but it didn’t sell the entire stake, which means it had another $91 million of shares it could sell without any filing.

• That this comes at the end of the quarter, when redemptions typically occur and after rumors of investor requests for redemptions and after Pirate’s assets under management, as indicated in SEC filings, decreased to $1.2 billion as of Dec. 31, 2006, from a high of $1.8 billion as of June 30, 2006.

In a phone interview, Squire says Pirate Capital has been slowing its new investments, making only one SEC filing indicating a new activist investment since June.

Pirate Capital has experienced a bit of rough sailing of late. In September, The Wall Street Journal reported that some of Pirate’s investments were down sharply, with its overall return was just 3%, according to hedge-fund industry advisers, less than an average of about 7% for activist funds in general.
Pirate Capital declined to comment. source

Resource #5: Pirate Capital's Thomas Hudson is one of those malcontents aiming to shake up stodgy companies. You can invest alongside him.
Vulture investors buy sick companies with valuable assets, hoping that somebody will take them out at a premium. Takeover tycoons buy whole companies and do the dirty work themselves. Between these extremes lies a world of activist investors. They buy large but not controlling stakes in companies and clamor for changes. Tweedy, Browne played this role at Hollinger International (HLR), the newspaper chain with the unsavory management. Carl Icahn did the same at Time Warner (TWX).

For two years one of these gadflies, hedge fund Pirate Capital, has pushed for an overhaul at GenCorp, an aerospace and weapons developer, shelling out $70 million for a 9% stake. Pirate's goal: to reenergize the stock by getting GenCorp to sell 12,000 acres of undeveloped land outside Sacramento. So far Pirate has won some board seats but no bonanza; the stock is up from $11, around the time it started buying, to $13 now.

One hedge fund with a minority stake can sometimes have a big impact, particularly if like-minded investors follow it in. Pirate's kindred spirits include Atticus Capital, Jana Partners, Bulldog Investors, Barrington Capital, Third Point and Steel Partners. When one of this bunch gloms on to a company, others often follow, thus magnifying their power. Steel, with 7% of GenCorp, votes with Pirate.
Matters came to a head at GenCorp's annual meeting in April when Pirate put up its slate of board nominees. Strangely, GenCorp's chief executive walked into the tension-jazzed meeting and lulled everyone into a stupor with a long-winded speech about the company's 90-year history. As the fellow droned on, Pirate's man on the scene, David Lorber, realized that management was delaying the vote while it contacted investors to change their minds. So Lorber fired off two dozen e-mails from his BlackBerry to shore up support and alerted colleagues at Pirate's headquarters in Norwalk, Conn. to work the phones. In the end Pirate ousted three of GenCorp's ten directors. source

Resource #6: Pirate Capital LLC, the beneficial owner of approximately 17.6 million shares of common stock in Aquila, Inc., urged today in a letter to all Aquila, Inc. shareholders that the shareholders express their concerns with respect to the proposed acquisition of Aquila, Inc. by Great Plains Energy and Black Hills Corporation, and ultimately vote against the deal.


Dear Fellow Aquila Shareholders,

As one of the largest shareholders of Aquila, owning
approximately 4.7% of Aquila shares, we are extremely disappointed
that the deal with Great Plains Energy and Black Hills Corporation
was accepted by management. We do not believe that this
acquisition offer reflects the full value for Aquila shares, and
we urge all shareholders to vote against this deal. We are also
concerned that Aquila's management is entitled to generous
severance packages despite the fact that the company has lost
hundreds of millions of dollars in recent years. We strongly
believe that this deal fails to maximize shareholder value, as
evidenced by the additional losses to market cap when the deal was
announced. In our view, the acquirers of Aquila are effectively
stealing the business from Aquila shareholders.

We urge all shareholders to call, fax, or email Chairman and
CEO Rick Green to express your concerns in an effort to have this
deal nullified immediately. Mr. Green can be reached by phone at
816-467-3532, faxed at 816-467-3556, or emailed at
rick.green@aquila.com. In addition, if you would like a more detailed
explanation of the shortcomings of the proposed deal, please contact
our investment analyst Peter Desloge at 203-854-1100 or
peter@piratecapitalllc.com. If Great Plains Energy and Black
Hills Corporation fail to revise their bid in a manner that is
favorable to Aquila shareholders, we believe that Aquila must
continue to operate as a stand alone company. source

Resource #7: (9.11.07) Pirate Capital LLC, the hedge-fund manager run by Thomas Hudson, barred withdrawals from its two Jolly Roger Activist funds after the firm's assets declined by almost 80 percent in the past year.

Pirate designated the four stocks held by the funds as ``special investments,'' meaning that clients won't be able to get money back until they are sold, according to an Aug. 31 letter to investors.

``In view of the activist nature of the funds, prior redemptions, market turmoil and their effect on the funds' individual positions and portfolios as a whole, we determined that the best way to manage the positions is through the Special Investment designation,'' Hudson said in the letter, a copy of which was obtained by Bloomberg News. Pirate may also lift the designation without selling the stocks. source

Resource #8: (11.15.04) Zachary R. George, 27, serious, square-shouldered, and wearing some kind of goo in his hair, sits at a long counter of a desk in Norwalk, Connecticut. He’s got a phone and a screen, like a telemarketer. Picking up the receiver, Zachary dials into the conference call.

“Harry,” begins Zachary when it’s his turn. Zachary and Harry J. Phillips Jr., the 55-year-old CEO of Cornell Companies, one of Houston’s top 100 businesses, use each other’s first names, as if they’re cordial, which they’re not.

“You work for us,” Zachary likes to let Harry know. Zachary represents a two-year-old hedge fund called Pirate Capital, a name that Zachary says gets people’s attention. (And if that doesn’t, then the 32 percent returns per year do.) For $20 million, Pirate purchased 13 percent of Harry’s company, which runs prisons. This makes Pirate Harry’s largest shareholder and, as Zachary sees it, Harry’s boss.
By now Harry, a distinguished member of prestigious boards, a trustee of his alma mater, Washington & Lee, is accustomed to Zachary’s urgent tones, especially when it comes to, as Harry put it, his “recent acquisition of an interest in Cornell.”
Zachary, for his part, doesn’t really understand how people outside Wall Street can expect to not make their numbers and still have friendly relations. Zachary, who looks like he might still be the college snowboard competitor he once was, takes a different view. Cornell has missed its earnings predictions for six or seven quarters running. “Why,” he’d recently asked Harry, “should anyone expect a CEO that has overseen the destruction of so much shareholder value to be able to turn things around now?”

Harry knows that Cornell, with its 4,000 employees in sixteen states, has had some disappointments. But on the conference call, he makes it sound as if that’s a mere detail. “We are going to grow this company,” Harry tells the analysts. Then, as if the greatest worry might be that Harry is going to throw in the towel, he adds, “We’re in it for the long term.” source

Resource #9: (9.26.06) There's blood aplenty on the decks of Pirate Capital, a $1.7 billion hedge fund that saw nearly half its investment staff depart this week.
Norwalk, Conn.-based Pirate has garnered attention by attracting Securities and Exchange Commission scrutiny for belatedly disclosing the sales of its stakes in OSI Restaurant Partners Inc. and Freightcar America Inc.

The fund specializes in taking substantial stakes in allegedly underperforming companies and agitating for management action, such as asset sales and share buybacks.

While Thomas Hudson, Pirate's general partner and a former distressed debt trader at Goldman Sachs, did not disclose the reasons for the departure of four analysts and one portfolio manager, the fund's much weaker-than-usual performance could not have helped.

Pirate is said to be up around 3 percent, trailing the 9.34 percent yearly return of the Dow Jones industrial average, and way below the 28-percent average returns of its first few years.

In an August letter to investors, he blamed the weakness on "shipwrecks" like its stake in OSI Restaurants, the parent of Outback Steakhouse.

In a letter to Pirate investors obtained by The Post, Hudson said he was planning on capping growth by closing its four funds, and that he would "refocus, streamline and navigate" the portfolio back to "the positive performance" he initially had. source

Resource #10: Pirate Capital LLC is a Norwalk, Connecticut[1] based hedge fund founded in 2002 by Thomas R. Hudson Jr. The firm employs shareholder activism to push for structural changes in target companies.

Pirate Capital LLC is the general partner entity to 4 funds (listed below). All 4 funds employ the same approach to investing, though the activist funds tend to be significantly more concentrated, and primarily consist of equity instruments in companies that are targeted for activism.

The fund purchases stakes in underperforming companies and then pushes for managerial action.[2] The company's motto is: "Surrender the Booty!"[3]
Tom Hudson, 41, who founded Pirate in 2002, is known for acquiring stakes in companies and pushing management to make changes to boost their stock prices.
The firm’s assets fell to $375 million as of September, 2007 from $1.8 billion a year earlier. source

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P.A.W. Partners | Hedge Fund Tracker Notes

P.A.W. Partners

PAW Partners | Hedge Fund Notes

Below please find the Hedge Fund Tracker Tool details for PAW Partners.

Resource #1: In 1990, Mr. Wright founded PAW Partners, a large hedge fund in the U.S. Prior to founding PAW Partners, he was a financial analyst with IBM; executive vice president and analyst with The Gartner Group, where he followed technology stocks and ran the firm's consulting and general products division; and president and chief executive officer of SoundView Financial Group, Inc., a registered broker dealer and investment adviser.

He earned both an M.B.A. and a B.S. degree in Chemical Engineering from Cornell University. He served as a judge for the M.B.A. Stock Pitch Competition in 2003 and 2004. source

Resource #2: WST: May we start with a brief overview of P.A.W. Capital and what your responsibilities are?

Mr. Wright: We manage about $1 billion. We're focused in technology (that's about 60% of our action), retail and consumer is 20%, and health care is 20%. We invest in all market capitalizations. A third of our capital is in excess of $5 billion; a third is medium cap, between $1.5 billion and $5 billion; and a third is below $1.5 billion. We're always long and short and hedged in all sectors and all market capitalizations. We tend to run a portfolio of about 100 positions. We've been in business 13 years. Our net return to investors has been 19%. We have 13 employees. Stylistically, I would say maybe 20% of our assets are in growth stocks, 40% in GARP stocks and 40% in turnarounds.

TWST: Do you do any top-down macro analysis, or are you strictly bottom- up investors?
Mr. Wright: We're bottom-up investors in terms of stock picking, but we look at scenarios in each sector of our business on a top-down basis to help us decide where to spend our time and energy. source

Resource #3: For consistently high returns in the red-hot but volatile technology sector, spotting the losers is as important as finding the winners, say hedge fund managers specializing in technology investing.

More new Internet, software and networking companies are headed for bankruptcy than big profits in the next few years, hedge fund managers contended at a conference in Bermuda organized by MAR/Hedge, a company that tracks and researches hedge funds.
The managers discussed how they try to beat the market by buying some stocks and short-selling others after conducting intensive research to separate the techno-wheat from the cyber-chaff.

Short-selling involves borrowing a stock to sell it in the hopes of buying it back later at a cheaper price, to return it to the lender.
Investors at the conference noted that hedge funds, loosely regulated investment pools for wealthy individuals and institutions, are allowed to short-sell stocks, which many mutual funds are not allowed to do. source

Resource #4: The judges were: Andrew Galligan Jr., CFA, director and analyst, TimesSquare Capital Management; William Gruver, former general partner and CAO, Goldman Sachs & Co.; Judah Kraushaar, former sell-side analyst, Merrill Lynch; Stephen Lanzendorf, CFA, Independence Investments; and Peter Wright, founder of P.A.W. Partners, one of the largest U.S. hedge funds. Criteria for their selections included accuracy, reliability and depth of financial analysis; knowledge of industry and company in stock selections; and presentation skills. Gruver praised the students for doing so much in such a short time, and Kraushaar joked: "I have a couple of trades I want to do when I get home." source

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Norton Capital Management LLC | Hedge Fund Tracker Notes

Norton Capital Management, LLC

Norton Capital Management | Hedge Fund Notes

Below please find the Hedge Fund Tracker Tool for Norton Capital Management LLC.

Resource #1: Norton Capital Management, Inc. is committed to providing the highest level of quality service to our clients. We listen to your concerns, ask the right questions, and take the time to understand your goals and objectives.

We have a broad base of knowledge and experience to provide advice designed to address your specific requirements. source

Resource #2: Norton Capital Management, Inc. is a Delaware Corporation with its principal office located in Norfolk, VA. The firm provides discretionary Portfolio Management for our clients. Each account is individually managed in accordance with its established portfolio policies. Our investment vehicles consist of blue chip stocks, quality bonds - both taxable and tax-free - and money market instruments. source


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North Sound Capital Hedge Fund Tracker Notes

North Sound Capital

North Sound Capital | Hedge Fund Notes

Below please find our Hedge Fund Tracker Tool for North Sound Capital.

Resource #1: North Sound Capital LLC is an employee owned hedge fund sponsor. The firm provides its services to pooled investment vehicles. It invests in the public equity markets of the United States. The firm was formerly known as DMG Advisors, LLC. North Sound Capital is based in Greenwich, Connecticut with an additional office in Denver, Colorado. source

Resource #2: Investment firm Duff Capital Advisors said on Tuesday it acquired hedge fund group North Sound Capital.

The two firms, both located in Greenwich, Connecticut, did not disclose terms of the deal.

For Duff Capital, which launched in March with the goal of raising between $1 billion and $1.5 billion to seed investment strategies, this marks its second hedge fund investment.

For North Sound Capital, whose assets have shrunk from $2.9 billion in 2006 to $1 billion now, the deal is a chance to join forces with Philip Duff, a Wall Street veteran with a track record of growing investment firms. source

Resource #3: 'John brings a wealth of knowledge and experience in the risk management area to our firm,' says James Torrey, chairman of the eponymous firm. 'Risk management is a vitally important part of our firm's investment process. John's outstanding background and depth of knowledge make him exceptionally well-qualified to lead this effort.'

Before joining North Sound, McClenahan was vice-president for risk management at Andor Capital Management, also a global long/short equity manager. At both firms he designed, implemented and maintained risk management processes, analytics, and frameworks.

He was previously director of product management at InvestorForce, an online consulting firm, and was active in the manager research and analysis area. Earlier, he was director of manager research for institutional investment consulting firm Ennis Knupp & Associates, where he developed a dedicated manager research capability formalising the research process and evaluation criteria. source

Resource #5: North Sound Capital, run by Tiger Management alumnus Thomas McAuley, is seeing assets fall and plans strategic and operational changes to improve returns after a period of underperformance, according to a letter the equity hedge fund firm sent to investors on Tuesday.

North Sound's total assets will likely fall to $1.4 billion in January, McAuley estimated in the letter. He didn't say what North Sound's assets were previously, but Institutional Investor reported in 2005 that the Greenwich, Conn.-based firm's assets stood at roughly $3 billion.

"We have taken steps to ensure that the reduction in our capital is as smooth a transition as possible for all investors, and we believe we have been successful," McAuley wrote in the letter, a copy of which was obtained by MarketWatch.

North Sound's Legacy funds have underperformed recently because they didn't invest enough money in their best ideas, McAuley added. The firm will focus its research on fewer sectors next year and try to generate fewer, but stronger investment ideas, he explained. source

Resource #7: At an extraordinary general meeting called by hedge fund manager North Sound Capital yesterday, African Platinum (Afplats) [AIM:APP] non-executive chairman Charles Hansard was ousted despite a unanimous recommendation by the board to the contrary. Director Mark Bristow, CEO of Randgold Resources [Nasdaq:GOLD; LSE:RRS] resigned “on principle” shortly thereafter.
Out of 257 million votes tendered, 53% voted in favour of Hansard’s resignation. The total number of votes exercised represented only 57.54% of the total share base, and thus only 30% of all shares carried the resolution. source

Resource #8: Duff Capital Advisors, an institutional investment management firm set up by FrontPoint Partners founder Phil Duff, said yesterday that it is partnering up with North Sound Capital, a billion dollar global long/short equity shop.
DCA will direct a significant, long-term investment to the North Sound strategy. Terms of the agreement were not disclosed.

North Sound founder Tom McAuley will serve as the portfolio manager of DCA-North Sound and will serve on the Duff Capital Advisors Investment Committee. The entire 38-person staff of North Sound will be offered the opportunity to join DCA, including its 13- person investment team. source

Resource #9: North Sound Capital will merge with DCA in July according to Duff Capital Advisors (DCA). DCA said it will direct significant long-term investment to the North Sound strategy, a global long/short equity that has approximately $1 billion under management. Terms of the agreement were not disclosed.
North Sound was founded by Tom McAuley in 2001. He will continue to be the portfolio manager of DCA-North Sound and will serve on the Dace investment committee. He will also assist in the development of new investment talent within DCA. source

Resource #10: North Sound Capital, run by Tiger Management alumnus Thomas McAuley, is seeing assets fall and plans strategic and operational changes to improve returns after a period of underperformance, according to a letter the equity hedge fund firm sent to investors on Tuesday. North Sound’s total assets will likely fall to $1.4 billion in January, Mr. McAuley estimated in the letter. He didn’t say what North Sound’s assets were previously, but Institutional Investor reported in 2005 that the Greenwich, Conn.-based firm’s assets stood at roughly $3 billion. source

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Norfolk Markets | Hedge Fund Tracker Notes

Norfolk Markets

Norfolk Markets | Hedge Fund Notes

Below please find the Hedge Fund Tracker Tool for Norfolk Markets.

Resource #1: Brett Hellerman, co-founder of Clinton Group, discusses the emerging manager seeding fund he has launched with MassMutual Insurance.

Hellerman was a co-founder of Clinton Group in 1991 and left the firm in 1997 to found Norfolk Management Group. Norfolk Management Group is also the sole owner of Norfolk Markets, a broker/dealer that has been active in the marketing of alternative investments to the institutional community for the past 8 years.

Hellerman is the CEO of Norfolk Management Group, LLC and is also the CEO of the new joint venture, Wood Creek Capital Management. source

Resource #2: Norfolk Markets, LLC provides brokerage services that focuses on alternative investments including hedge funds and structured products linked to hedge funds. The firm provides funds placement and advisory services for structured products and collateralized bond and fund obligations. Norfolk Markets was founded 1997 and is based in Norfolk, Connecticut. It has offices in New York, Tokyo, and Paris. source

Resource #3: Babson Capital Management LLC (“Babson Capital”), an
investment management firm based in Boston and Springfield, Mass., and Norfolk
Management Group, LLC (“Norfolk”), an investment holding company based in Norfolk,
Conn. specializing in alternative investments, announced today that they have created a joint venture and seeded a fund intended to incubate emerging hedge funds in non-traditional asset classes. The efforts continue the firms’ commitment to explore ways to generate potentially outstanding absolute returns.

Wood Creek Capital Management, LLC, the investment manager created through the
joint venture, has just closed its first fund, Wood Creek Venture Fund, LLC (“the Fund”).

Norfolk and Babson Capital’s parent, the Massachusetts Mutual Life Insurance Company
(“MassMutual”), are both investors in the Fund. Wood Creek Venture Fund will identify and develop the next generation of alternative investment managers who are focused on proven but still-emerging niche strategies such as intellectual property rights, environmental credits and trade finance obligations. source

Resource #5: Norfolk Markets LLC announced that it has hired a new managing director for its New York office, Michael Murphy, a former senior analyst at HSBC Republic Bank.Norfolk Markets, which was founded by Brett D. Hellerman in 1997, is a broker- dealer that specializes in alternative investments, including hedge funds and structured products linked to hedge funds, such as collateralized bond obligations. Mr. Murphy will head the manager research and origination effort and will act as the overall product manager for the firm. Norfolk Markets ...source

Resource #6: Tony Stocks, very well-known in the hedge fund business from his years building Citco into the industry's biggest administrator, is teaming up with Norfolk Markets Europe in London, the UK part of the global marketing, research and client services group.

Under the new arrangement, Stocks' Tennyson Capital Partners company is to be merged next month with Norfolk's London operation, which is headed by Tom Herman and John Mitchell. Over the past year, Norfolk has been building up its European capabilities under Herman, who was previously at Blackstone and Weiss Peck & Greer, nd Mitchell, who has a number of years of industry experience with Paloma Partners and most recently at Deutsche Bank. source

Resource #7: New Haven, Conn.-based Wood Creek Capital Management, a multi-manager shop that seeds niche strategies, is looking to ramp up its platform this year with the addition of four to six managers.

The firm currently manages the $75 million Wood Creek Venture Fund, which launched in 2005 and has seeded four managers to date. The fund has exposure to the music, trade finance origination and investment, and specialty pharmaceutical brand management sectors.

Going forward, CEO Brett Hellerman said the fund is looking to invest in weather-related strategies, because "weather is an inefficient marketplace, uncorrelated with other alternative strategies, and it's a growing market." source

Resource #8: Norfolk Markets, LLC today announced that Michael Murphy, CFA has joined the firm as a Managing Director. Murphy will head Norfolk's expanded manager research and origination effort and will act as overall product

Most recently, Murphy was a senior analyst at HSBC Republic Bank in New York responsible for manager selection for HSBC's multi-manager products.
"Mike is a great addition to our team," said Brett D. Hellerman, CEO of Norfolk. "Norfolk continues to grow as a diversified investment bank dealing in alternative investments. Having someone of Mike's caliber to head our origination efforts will help us in our mission to serve the needs of institutional investors." source


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Newbury Partners LLC | Hedge Fund Tracker Notes

Newbury Partners LLC

Newbury Partners | Hedge Fund Notes

Our team is still building this specific set of Hedge Fund Tracker Notes, for completed manager profiles please see our Hedge Fund Tracker Tool.

Resource #1: Stamford, Connecticut-based secondary firm Newbury Partners has closed its first fund on $702m. The fund was launched at the end of 2006 with a $700m target. Investors in the fund reportedly include New York Life, 3M Pension Fund and APIII.

Newbury Partners' fund is already 20 per cent invested. Most deals were completed following the subprime mortgage crisis in summer of last year, the firm said. Newbury Partners is a spin out from Auda Private Equity. source

Resource #2: On September 20, 2007, an agreement was signed between the Company and Newbury Partners LLC ("the buyer") whereby the Company and Clal Venture Capital, Limited Partnership, a partnership controlled by the Company and held by it at a rate of 67% and at a rate of 33% by IDB ("CVC"), will sell their holdings in several start-up companies ("the sold companies") managed for the Company and CVC by the management company, IMS, in consideration of approximately $ 20 million. The sale of certain companies is subject, among other things, to refusal rights granted to other shareholders holding a stake in some of the sold companies. source

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Monitor Capital Inc.

Monitor Capital

Monitor Capital | Hedge Fund Notes

Our team is still building this specific set of Hedge Fund Tracker Notes, for completed manager profiles please see our Hedge Fund Tracker Tool.

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Lone Pine Capital | Hedge Fund Tracker Notes

Lone Pine Capital

Lone Pine Capital | Hedge Fund Notes

Below please find the Hedge Fund Tracker profile for Lone Pine Capital.

Resource #1: we have Lone Pine Capital, managed by Steven Mandel. Lone Pine is an $8 Billion fund that has returned over 25% annually ever since its inception in 1997. Why is Mandel worth following, you might ask? Well, he served as a consumer/retail analyst for Tiger Management back in the day for legendary investor Julian Robertson. Robertson's proteges/right-hand men have been nicknamed the "Tiger Cubs" and many have started their own funds. So, not only has Mandel learned from one of the best, but he has put up some very solid returns himself. Mandel is well versed in the ways of finding undervalued companies and his funds typically like to sniff out solid companies with good management that are trading below their intrinsic value. Just this past year 1 of his funds was up 34% before fees while another was up 32% before fees. His track record speaks for itself. And, not to mention, he learned from one of the greats in Julian Robertson. However, as I wrote about here, Lone Pine has had a rough 2008, where their Lone Cedar Fund was -5.38% year to date (as of the middle of July '08). By analyzing their 13F, maybe we'll be able to see where they are slipping up. source

Resource #2: By launching a long-only fund called Lone Cascade, Lone Pine Capital has not only given up hope of generating alpha on the short side, but has also taken a risky bet on the market. However good its stock picking (within reason), it’s hard to see how Lone Cascade will make money in a down-market.

This observation elicited two responses.

One response was to argue that ultimately it’s always possible to make money on the long side if your holding period is long enough. So if shorting is becoming increasingly hard, it’s fine to adopt a long-only strategy. Personally, I don’t buy that. Current predictions of long-term returns from the US equity markets are unusually pessimistic; just read Hussman’s and Grantham’s letters (which I’ve linked to from the Market Resource Page) and this analysis of Mauldin’s book Bull’s Eye Investing source

Resource #3: We found out last month that September was pretty brutal for several high-profile hedge funds. Among them was Lone Pine Capital, headed by Stephen Mandel, who was formerly a Managing Director at Julian Robertson's legendary Tiger Management.

Lone Pine employs a number of strategies, including value, growth, and short selling. According to Bloomberg, Lone Pine returned 47% in 2007, but Lone Pine's main Lone Cypress fund was down -14.7% for September and -26.5% year to date at that point. We now know that Lone Pine made several moves during the quarter ended September 30th. source

Resource #4: A big part of earning potential at a hedge fund is not just base pay plus bonuses, however. As managers now are doing whatever it takes to record gains in a tough trading environment, hanging on to top talent is getting increasingly important. More and more, hedge fund managers are starting to share the wealth by giving equity stakes in their firm to key employees or expanding already-existing equity plans.

Hedge fund managers who have already done this include Stephen Mandel, who manages $9 billion equity hedge fund Lone Pine Capital, and Daniel Och, who manages New York-based Och Ziff Capital Management, an $11.5 billion hedge fund.

According to the Glocap survey, investment professionals besides the chief investment officer at most big hedge funds pocket base salaries in the six figures, but for employees who do not have equity in a firm, the real money comes from their bonuses. For investment professionals -- in other words, anyone making an investment decision, such as portfolio managers and analysts -- with five to nine years of experience, bonuses jumped from $212,000 in 2003 to an average of $287,000 in 2004. Traders with 10 or more years of hedge fund trading experience saw their bonuses increase 38 percent from $313,000 in 2003 to $433,000 in 2004. source

Resource #5: Hedge fund Lone Pine Capital LLC reported on Monday that it has taken a 5.4 percent stake in teen clothing retailer American Eagle Outfitters Inc (AEO.N).
The fund disclosed in a filing with the U.S. Securities and Exchange Commission that it owns 11.6 million shares, but did not state when it bought the shares or the purpose behind the acquisition of the stake. source

Resource #6: How hard is it for a hedge fund to string together stellar returns for two years in a row? Pretty hard, according to an analysis by the New York Post. A lot of funds that fared well last year are suffering in the red this year. The Tontine Overseas Fund for example was up 40 percent last year but is down 17 this year. Lone Cedar, from Lone Pine Capital, was up 44 percent last year but is down 6 percent this year. But there are always some exceptions. One of the biggest winners last year was Paulson & Co.'s Paulson Advantage, which was up 100 percent. This year, it is hanging tough with a 22 percent gain. Harbinger Capital Partners Offshore was up 112 percent last year and is up another 41 percent this year. We'll see how long this can last. source

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Kideral International

Kideral International

Kynikos Associates | Hedge Fund Notes

Our team is still building this specific set of Hedge Fund Tracker Notes, for completed manager profiles please see our Hedge Fund Tracker Tool.

Resource #1: Many of the specific allegations are in a court declaration by Dean Lodmell, dated November 4, 1999. Mr. Lodmell said Mr. McKae hired him in 1998 and he became "intimately familiar" with the records of the limited partnership and the offshore fund.

Mr. Lodmell said he is the principal of Kideral International, a financial advisory firm involved in the startup and operation of hedge funds, and chairman of Morning Star Group Limited, a private trust company.
Source

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