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HEDGE FUND ALERT: July 3, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030

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HEDGE FUND ALERT: July 3, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030 ValueWorks Vehicle on a Tear Assets under management at fund shop ValueWorks have spiked this year on the strength of blistering performance. !e New York "rm, founded in 2001 by Charles Lemonides, runs a long-biased hedge fund that was up 51% year to date as of June 30 — versus a 13.8% gain for the S&P 500 Index. !e JULY 3, 2013 DE Shaw, Two Sigma Embr returns of the fund and related separate accounts have helped 2 Doors Opened on Healthcare Fund Two ace Mutual Funds of the biggest systemat — want to expand their p ic traders — D.E. Sha 2 Waypoint Ready to Raise Capital roduc w and Two Sigma D.E. Shaw t lines to include m Investments li# ValueWorks’ assets to $227 million, from $167 million at , which runs som utual funds. 2 Estimize Eyes Economic Indicators lowing in the e $30 billion, and footsteps of qua the $14 billion Group among ntitative-investme Two Sigma are fol- 3 Lyford Group the small but nt managers AQR Throws in the mutual f growing number Capital and Man the start of the year. Towel unds. So-called of hedge fund mutual liquid alternatives ! rms that also 3 ValueWorks funds — have dr — hedge fund o" er Vehicle on a Tear and no awn increasing strategies packaged w account for $150 b ly strong demand as 3 M81 Launches Merger Tw illion of assets, acco since the ! nancial !e fund’s year-to-date performance includes a 1.5% loss -Arb Fund o Sigma has begun rding to Morningstar crisis format, talking to investors . 4 Appleb a source said. It to gauge their y Fortifi es Hedge Fund New ’s unclear what interest in a mutu Teams York ! rm bills itself strategy it envisi al fund ti! c method-based a as a “technolog ons for the vehicle, for June. But the down month followed gains of 17.3% in 4 Options Specialist Readies ppro y company th but the Vehicle ach to invest at applies a rigo As for D.E. Shaw ment manageme rous, scien- 4 Standard Pacifi , it doesn’t plan nt.” c Alum Going Solo to repackage one of its existing h January and 14.3% in March — the fund’s strongest monthly 7 LATEST LAUNCHES edge fund See EMBRACE on P Discovery, Rubicon Excel Amid Macr age 6 returns since 2009. !e vehicle was up 23.3% last year, 1.7% THE GRAPEVINE Like most global-macr o Slump ment too o players, Discovery k their licks Capital a Rubicon notion tha in early June — nd Fund Manage- Jonathan Ledden t macro managers can but their solid in 2011, 8.5% in 2010 and 57.9% in 2009. It lost 34% in 2008, ’t make m year-to-date returns will leave his job as chief # e Discovery Global oney in this en belie the operating o% cer o des Opportunity vironment. f Citadel’s equity uni pite a 1.2% loss for t Master Fund w in August, a$ er nine y t wa he ! rst three as up 14.9% as ears at the Chicag s down 1.3% in weeks of the mon of June 21, when the S&P dropped 38%. ! rm. Ledden’s r o wa the ! rst half of J th. # e Rubicon Glo ole encompasses o s riding a 3.8% mo une, then rebounded bal Fund of business strat versight pro! nth-to-date gain as of the following egy and day-to-da t year to date. June 21. # week and tions for the 130-perso y opera- at le$ Rubicon with a 23.2% n equity team. H # eir returns st !e "rm takes a deep-value approach to investing in both plans to take time o e tracked and out among " before ! guring o by HSBC. those of 30 d his next m ut Investment Only two other iversi! ed global-macr ove. Citadel has y — vehicles — op o funds replacement. et to name a are up by double erated by Moore Capital itive territo Hedge Fund Researdigits this year, and Tudor equity and debt securities, typically leveraging up its long ry. and many are do ch’s HFRX wn or barely in Erin Witmer Macro/CTA Index had fallen 0.7% pothiss- has le$ her post as head o hedge fund r f See SLUMP on P esearch at Willett Advisors, age 5 book to 125% of investor capital while committing 25% to its the family o Citadel Alum Starts Special-Situations Fund % ce of New York’ mayor, Michael Bloomber s billionaire g. One-time Citadel employ Witmer’s execut Andr ment plans cou ! rst time s ive ew Greenber short positions — a variation on the 130/30 theme. But unlike it’s kno ldn’t be learned, b ince the credit cris g is running wn that she is m ut Working is. a hedge fund f It oving to Arizo through AMG or the ’s unclear if Willet na. vehicle his Capital, t has replaced her called Saker Pa the Chicago-based . his rtners on June Greenberg l most 130/30 funds, which strictly adhere to exposure ratios, I.A. own money and 1 with $7.8 millio aunched a Englander & Co. raise additional c contributions fr n — represen has hired thr apit om a few outside ting a mix of sales professiona ee al for now, and will in backers. He d ls for a unit tha Saker Partners stead focus o oesn’t plan to kets brokerage ser t mar- employs the s n building a track r ValueWorks will adjust its long and short books in response vices, technolog strategy that Gr ame equity-res ecord. related pro y and eenberg has em tructuring and s ducts both to hedge funds and complemente ployed in recen pecial-situation investors who main d by opportunist t years for his s tain separ positions at a time. ic risk-arbitrage pla personal portfolio with fund o ate accounts ys. Greenberg aims to hold 20-30, to changing market conditions. perators. # e recrui Greenberg Chicoine, Harry Fr ts — Bob spent nine years eda and Nick Rizzi lion as co-head at Citadel, wher — of the ! e he event See GRAPEVINE on Back P to Deepha rm’s event-driv ually ran more ven Capital en investment than $1 bil- age as head of the team. In late 2006, !e hedge fund, called ValueWorks LP, accounts for about former Knight Capital he moved unit’s Deep haven Event See CITADEL on P a third of the "rm’s overall assets, with the rest run in separate age 5 accounts on behalf of wealthy individuals, including corporate chief executives and a former U.S. congressman. !e "rm also counts trusts, endowments and pensions among its clients. Lemonides oversees a sta$ of eight, including four invest- chief investment o%cer at wealth manager M&R Capital of ment professionals. Before founding ValueWorks, he was New York. HEDGE FUND ALERT: July 3, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700.
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