Highbridge Capital Management, LLC
The following piece on Highbridge Capital Management LLC (co-founder Henry Swieca on the right in the picture) is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.
Resource #1: (5.10.09) Hedge fund giant Highbridge Capital Management is taking Constellation Growth Capital, a media, communications and technology-focused private equity shop, into the fold under its Highbridge Principal Strategies unit.
Terms of the deal were not disclosed.
Two years ago, Highbridge hired Scott Kapnick, the former co-head of Goldman Sachs’ investment bank, to give it a foothold in the private equity space. source
Resource #2: (4.3.09) Hedge funds are back in the game. After a dismal 2008 that saw record losses and record withdrawals, investors are tentatively returning to the sector, prompted by signs that funds made money even as markets plunged this year.
Highbridge Capital Management, once the world’s biggest hedge fund, was a big winner, with $1bn (€757m) of net inflows this year, including $225m from majority owner JPMorgan, according to people familiar with the fund. It ended the quarter with $20bn under management. source
Resource #3: (12.2.08) Highbridge Capital Management LLC, the hedge fund company owned by JPMorgan Chase & Co., is limiting client withdrawal requests to avoid selling assets at distressed prices, according to a person familiar with the matter.
Investors who ask for withdrawals from the $1.9 billion Asia Opportunities Fund this quarter will get half their money by the end of January, said the person, who asked not to be identified because the information is private. The fund, which lost 32 percent this year through October, will return the rest within 12 to 18 months.
New York-based Highbridge, run by Glenn Dubin and Henry Swieca, will segregate hard-to-sell assets from the Asia fund and sell them off over time in a bet that prices will recover and clients will get back more money. Firms including Tudor Investment Corp. and GLG Partners Inc. have taken similar steps in the past month.
“This seems to be a much fairer alternative to fully halting redemptions or shuttering the fund,” said Tanya Styblo Beder, chairman of financial consultants SBCC Group in New York.
Mary Sedarat, a spokeswoman for Highbridge, declined to comment. The investment firm has about $20 billion of assets. source
Resource #4: (11.6.08) Highbridge Capital Management, the giant JPMorgan Chase-owned hedge fund, is not having a good year.
At least three of the firm’s funds posted double-digit losses during a disastrous October, according to e-mails to investors obtained by Wall Street blog Dealbreaker.com. The firm’s Convertible Arbitrage Fund plummeted 23.75% last month, leaving it down 37.33% on the year. Also posting big losses are the Asia Opportunities Fund, which lost 14.79% in October (down 32.44% YTD) and Highbridge Capital Corp.’s New Issue Restricted share classes, which fell 12.77% on the month (down 25.34% YTD). Source
Resource #5: Highbridge Capital Management, which is majority owned by JP Morgan Chase and has $25bn under management, is axing 10 per cent of its New York-based staff and plans cuts in Europe and Asia.
The volatility in global stock markets has savaged the performance of some of the world’s best-known hedge funds, raising fears of a collapse in the sector, which could cause a fresh crisis in the financial system.
Big names including Deephaven, Marshall Wace, Citadel Investment Corp, Lansdowne Partners, Third Point and Harbinger, have in recent weeks sustained losses of as much as 20 per cent in some funds.
Investors pulled at least $43bn (£25bn) from US hedge funds in September, according to TrimTabs Investment Research. This is nearly five per cent of the global sector’s estimated $2 trillion in total assets.
Part of the fall in share prices around the world is the result of hedge funds having to liquidate positions to fund redemptions as investors flee the asset class. Last week, Manny Roman, the co-chief executive of GLG, Europe’s biggest hedge fund, warned that thousands of hedge funds are on the brink of failure. He predicted that between 25 and 30pc of the world’s 8,000 hedge funds would disappear “in a Darwinian process’’, either by going bust or deciding that meagre returns are not worth their efforts. Source
Resource #6: Highbridge Capital Management, LLC (HCM) is a privately owned hedge fund sponsor. The firm primarily provides its services to pooled investment vehicles. It also caters to high net worth individuals and investment companies. The firm invests in the public equity and fixed income markets across the globe. It employs a multi-strategy, a market neutral strategy, an absolute return strategy, an Asian opportunities strategy, a global convertible arbitrage strategy, an event-driven equity arbitrage strategy, a statistical arbitrage strategy, a structured private investments strategy, a European special situations strategy, a long-short equity strategy, and a special opportunities strategy among others as a hedging technique to make its investments. The firm operates as a subsidiary of J.P. Morgan Fleming Asset Management Holdings Inc. Highbridge Capital Management was founded in 1992 and is based in New York, New York with additional offices London, United Kingdom; Boston, Massachusetts; Dallas, Texas; and Tokyo, Japan. Read more...
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