JAT, Citadel, Quantz Among Top Hedge Funds in '11

Total Page:16

File Type:pdf, Size:1020Kb

JAT, Citadel, Quantz Among Top Hedge Funds in '11 This document is being provided for the exclusive use of <[email protected]> 06.19.12 www.bloombergbriefs.com Bloomberg Brief | Hedge Funds 12 SPOTLIGHT QuantZ Capital’s Milind Sharma on Applying a ‘Macro Overlay’ to Quantitative Investing a slow, gradual thing? in the higher order effects, namely what Milind Sharma, CEO of New York-based A: We’re really betting on the second does that do to vol and dispersion and QuantZ Capital Management Ltd., spoke order effects. Regardless of whether you stock correlation and all those things. to Bloomberg’s Nathaniel Baker about his have the big event or not, it’s going to be The macro stuff translates directly into views on the global macro picture and how a big unwind because there’s no ways to the fact that in the last couple of years these are incorporated into his hedge fund’s you’ve seen record high stock correla- strategy. get rid of the debt instantaneously. The real issue near term is whether Angela tion. That makes it very difficult for a Merkel and Europe can take a page fundamental, bottom-up stock picker to Q: Your fund was in the top 3 percent in out of our history book from Alexander outperform. The other issue is that when the Bloomberg database last year and Hamilton’s experience and apply it to Eu- you’re in a sideways to downward bear recently won the Battle of the Quants. rope. Even if they do, it’s difficult to see market, the typical long/short process What’s the strategy, exactly? how the world can magically heal itself. doesn’t work well. Because most long/ short funds are essentially levered beta A: We’re ‘quantamental,’ which means Because we’re still looking at a potential riders. They see a rally, they load up and a hybrid of quantitative-driven on the hard-landing scenario in China, India’s jump on. Not to mention that with the securities selection side with some macro not in great shape with inflation, the pressure on expert networks and Reg adjustment/macro overlay, if you will. Japanese have plenty of their own debt to worry about and are only 23 years into FD it’s gotten much harder for many of these managers to do what they used Q: Quantamental. I like that. How does their bear market, and we’re 13 years into to do. Plus, with the relative volume in the macro overlay work? ours. We see the ‘lost decade’ in stocks – not the one that just happened, but ETFs rising dramatically, you’ve got an A: It’s taking our house view and the one that’s likely to come – to act like environment where a process-driven combining it with a regime-switching ap- a dampened oscillator. This means that strategy can tweak the right levers to proach. Basically forecasting probabili- each successive episode of quantitative take advantage of these issues. ties, which then drive the portfolio tilt easing will be less and less effective. As and overall portfolio orientation. There’s an example, this is the third year in a row Q: Isn’t there a lot of upwards/down- a lot of moving parts. that we’ve seen a very serious déjà-vu wards/sideways movement as we go script playing out; you get a very strong along here? Q: So what are your macro views then? first quarter, market peaks in April or A: Exactly. In general, one should expect A: We sound like a broken record in May, then you get a summer swoon. For much higher volatility and correlation in terms of our perma-bearish outlook but the third year in a row we’ve been justi- these bear market cycles. That’s some- that’s because frankly we see either a fied in being cautious that once the sugar thing a quant process can take advantage ‘checkmate’ or a ‘stalemate.’ We don’t high of quantitative easing wears off, the of. We for instance are always implicitly see any great scenarios that can come same script plays out. What I’m saying is long vol/long dispersion. But we can out of this massive deleveraging cycle. that at some point you’re going to have choose to be long correlation/short cor- We’re in the camp of this being a great an episode of QE perceived not as a relation by tweaking our ratio bets on stagnation/deflationary bust or secular license to melt up, but as sheer despera- idiosyncratic versus common factor risk. bear market. tion on part of the Fed. Q: I think you just lost me. Q: What are your big concerns? It Q: How are these views translated into A: It’s very difficult for fundamental man- sounds like this goes beyond Greece your strategy exactly? How does that agers to even measure their idiosyncratic and European sovereign debt? mechanism work? versus common factor levels, much less A: That’s right. All of the above plus of A: As I mentioned we’re more interested take advantage of that. course the domestic issues: your fiscal cliff, the $46 trillion of unfunded liabilities, trying to solve the debt overhang with more debt and the possibility of a disor- Age: 40 derly default or disorderly decline in one of the major reserve currencies. At the College/University/Grad School(s): Oxford, Vassar, Carnegie Mellon, Wharton end of the day, we believe that enough Professional Background: MLIM, ran proprietary stat arb portfolios at RBC cans have been kicked down enough roads in enough countries that some- and Deutsche Bank AG, the latter under Boaz Weinstein. thing’s got to give at some point soon. Mentors: Boaz Weinstein; Bob Doll, vice chairman of BlackRock. Q: Will this be a big event or more like Charitable Work: Ti Kay Haiti (www.tikayhaiti.org) 1 2 3 4 5 6 7 8 9 10 11 12 “QuantZ - Winner of the Best Quant fund award at the Battle of the Quants 2012” Global Markets Summit 2012 & Markets Choice Awards 2013 The Secret Triumph of Quants October 18, 2012 By Irwin Speizer Equity market-neutral funds have found a path to modest profit in the past two years, but managers running the strategy in quantitative mode have been more impressive performers, posting double-digit returns. Funds plying an equity market-neutral strategy place long and short bets in a balanced way that exploits mispricings while avoiding correlation with overall markets. The quant strategists, however, have been particularly good at navigating choppy markets, thanks to algorithms that detect changes, even minute ones, in value, momentum and other broad factors. After several difficult years, equity market-neutral funds overall showed positive results last year and to-date this year. The sector had a rough September, however. The Dow Jones Credit Suisse AllHedge Index pegs the sector up 4.33 percent year-to-date through September, on a par with the Dow Jones Credit Suisse AllHedge Index, which rose 4.621 percent for the same period. What the market-neutral index may be obscuring is the quantitative version within the strategy. Among the index-beating quant funds are Boston-based Acadian Asset Management’s $58 million Global Leveraged Market Neutral Fund, up 15.2 percent in 2012 through August after rising 18.1 percent last year, according to people familiar with the fund, and QuantZ Capital Management’s Quark Equity Market Neutral Fund in New York, up about 6 percent for the year through early October, according to sources, after posting a 13.82 percent gain last year. Yet despite strong performance, investors have not paid much attention to the strategy. Alexandre Voitenok, a senior vice president and director of long-short strategies at Acadian, says that in surveys investors in both Europe and the U.S. have for the most part said their interest was neutral, as opposed to rising or falling. He has, however, just begun to get more calls from European fund-of- funds managers in the past few months. Investors may be reluctant due to a lingering hangover. Quants had a poor year in 2009, and before that they suffered from doube-digit losses in 2007, when many quant funds were so over-leveraged that a downward market trend set off a chain reaction of forced selling. Many investors now want to see two years or more of good performance before they commit. according to investors familiar with the strategy. What’s working in favor of the winners, say people familiar with the funds, is a reliance on effective and constantly updated models that tend to stress analysis on broad factors like value or momentum rather than focusing more on fundamental stock picking. Acadian monitors 40,000 companies worldwide, using factor models and carefully monitored timing of plays. We diversify not only by having a multifactor approach but also by thinking about different time horizons, says Voitenok. The QuantZ fund owns about 800 stocks at a time and uses computer models to analyze and predict macro economic trends. If we can anticipate when it is risk on and when it is risk off by virtue of getting the macro probability right, we can make money by being tilted the right way, even if there are other headwinds, says Milind Sharma, CEO of QuantZ. Cerebellum Capital in San Francisco takes a somewhat different approach in its $80 million ATM Fund. We have identified a particular form of quant arbitrage that if carefully deployed, can generate modest returns with very low risk, says Conrad Gann, Cerebellum’s chief operating officer.
Recommended publications
  • Global Events
    GLOBAL EVENTS Education • Professional Leverage • Networking • Philanthropy Industry Icons Sep 18, 2013 New York: A Conversation With Adena T. Friedman, Chief Financial Officer, The Carlyle Group Adena Friedman, Chief Financial Officer, The Carlyle Group Bill Stone, Founder and CEO, Moderator, SS&C Technologies Jun 3, 2013 Washington: Conversation with David M. Rubenstein, Co-Founder, The Carlyle Group David M. Rubenstein, Co-Founder, The Carlyle Group Jeffrey R. Houle, Moderator, Partner, DLA Piper Apr 3, 2013 New York: Fireside Chat with Saba Capital's Boaz Weinstein Boaz Weinstein, Founder & CIO, Saba Capital Stephanie Ruhle, Moderator, Anchor, Bloomberg Oct 30, 2012 Newport Beach: A Conversation with Dr. Mohamed El-Erian of PIMCO: Investing in a Zero-Interest Rate Environment Dr. Mohamed El-Erian, Chief Executive Officer and Co-CIO, PIMCO Lupin Rahman, Moderator, Executive Vice President, PIMCO Marc Seidner, Managing Director and Generalist Portfolio Manager, PIMCO Qi Wang, Managing Director and Portfolio Manager, PIMCO Oct 16, 2012 New York: Know Yourself and Your Decision-Making Process: A Conversation with Nobel Laureate Dr. Daniel Kahneman Dr. Daniel Kahneman, Eugene Higgins Professor of Psychology and Professor of Public Affairs Emeritus, Princeton University Jason Zweig, Moderator, Columnist, Wall Street Journal Sep 19, 2012 New York: Conversation with Eric E. Schmidt, Executive Chairman of Google Eric E. Schmidt, Executive Chairman, Google Apr 30, 2012 New York: An Armchair Discussion with John J. Mack on Leadership John J. Mack, former Chairman and CEO, Morgan Stanley Joanne Pace, Moderator, former Chief Operating Officer, Morgan Stanley Investment Management Jan 25, 2012 Geneva: Philippe Jabre Talks Markets Philippe Jabre, Chief Investment Officer, Jabre Capital Partners Dec 8, 2011 Los Angeles: Dinner Event with Howard Marks, Chairman, Oaktree Capital Oct 26, 2011 Los Angeles: Renee Haugerud, Founder, CIO & Managing Principal, Galtere, Ltd.
    [Show full text]
  • The Quants Run Wall Street Now - WSJ 5/24/17, 11:08 AM
    The QuantsTHE Run Wall Street Now - WSJ QUANTS RUN5/24/17, 11:08 AM WALL STREET SHARE NOW For decades, investors imagined a time when data-driven traders would dominate financial markets. That day has arrived. https://www.wsj.com/articles/the-quants-run-wall-street-now-1495389108 Page 1 of 14 The Quants Run Wall Street Now - WSJ 5/24/17, 11:08 AM BY GREGORY ZUCKERMAN AND BRADLEY HOPE Alexey Poyarkov, a former gold-medal winner of the International Mathematical Olympiad for high-school students, spent most of his early career honing algorithms ? at technology companies such as Microsoft Corp. , where he helped make the Bing search engine smarter at ferreting out pornography. Last year, a bidding war for Mr. Poyarkov broke out among hedge-fund heavyweights Renaissance Technologies LLC, Citadel LLC and TGS Management Co. When it was over, he went to work at TGS in Irvine, Calif., and could earn as much as $700,000 in his first year, say people familiar with the contract. The Russian-born software engineer, who declined to comment, as did the hedge funds, had almost no financial experience. What TGS wanted was his wizardry at designing algorithms, sets of rules used to power calculations and problem- solving, which in the investment world can quickly parse data and decide what to buy and sell, often with little human involvement. Up and down Wall Street, algorithmic-driven trading WSJ PODCAST and the quants who use sophisticated statistical models to find attractive trades are taking over the The Quants: Today’s Kings investment world.
    [Show full text]
  • MORTGAGE MARKETS and the 2008 FINANCIAL CRISIS by Allison
    MORTGAGE MARKETS AND THE 2008 FINANCIAL CRISIS by Allison Sterling Submitted in partial fulfillment of the requirements for Departmental Honors in the Department of Finance Texas Christian University Fort Worth, Texas May 2, 2014 ii MORTGAGE MARKETS AND THE 2008 FINANCIAL CRISIS Project Approved: Supervising Professor: Dr. Mauricio Rodriguez, Ph.D. Department of Finance Dr. Joseph Lipscomb, Ph.D. Department of Finance Dr. William Wempe, Ph.D. Department of Accounting iii Table of Contents INTRODUCTION .............................................................................................................. 1 THE ROLE OF THE UNITED STATES GOVERNMENT .............................................. 5 Social Policy ....................................................................................................................... 5 Government-Sponsored Enterprises ................................................................................... 7 Too Big To Fail Policy ....................................................................................................... 8 Federal Regulation of Mortgage Markets ........................................................................... 9 THE ROLE OF THE FEDERAL RESERVE ................................................................... 10 Low Interest Rate Policy ................................................................................................... 10 Negligent Attention to Financial System .......................................................................... 12
    [Show full text]
  • Hedge Funds Vs Traditional Assets
    University of Nottingham Hedge Funds & The Alpha Paradigm Ioannis Logothetis Master of Science in Finance & Investment Hedge Funds & The Alpha Paradigm by Ioannis Logothetis September 2012 A Dissertation presented in part consideration for the degree: ‘Master of Science in Finance and Investment’ 1 Abstract Numerous heavily quantitative strategies, macroeconomic and esoteric investment techniques involving currencies, fixed income products, commodities and equities have proven to be very profitable over the last two decades as math whizzes of Wall Street implemented mathematical and quantum physics models to outperform financial markets in search of Alpha. The development of mathematical algorithms, exotic trading techniques, lightening fast computerized machines and platforms and the effective in-depth skilful macroeconomic analysis from numerous hedge fund managers have resulted in trillions of profits or even losses which have in turn affected the global financial system significantly. This thesis will examine the features of the hedge fund industry focusing on the analysis and the background of the ‘Alpha’ paradigm, the various profitable strategies on record, their performance over the years, the recent developments in the field, their influence and their effects on the global economy and the financial system with the infamous events of 2007- 2008 serving as a backdrop. By assessing historically the hedge fund performance it could be demonstrated that hedge funds produce superior risk-adjusted returns over time comparing with traditional assets, and they carried fewer risks when the volatilities are compared. Our findings also support that hedge funds possess the ability create alpha consistently and systematically with limited volatility and by outperforming traditional asset classes, while there is a limited interaction between hedge fund returns and systematic market factors.
    [Show full text]
  • Bloomberg Briefs: Hedge Funds
    Tuesday March 7, 2017 March 7, 2017 Alaska's Wealth Fund Seeks 11 Funds for Investments Number of the Week By Hema Parmar Alaska’s $55.4 billion wealth fund is seeking up to 11 hedge funds for allocations, following its decision in May to redeem from its funds of hedge funds and invest in $1.06 Billion managers directly. The Alaska Permanent Fund Corp. prefers experienced managers that have a track Net inflows into macro hedge funds in record of producing returns of at least inflation plus 5 percent, according to public January, according to eVestment. documents from its quarterly board of trustees meeting. Alaska is seeking funds with low correlation to equity markets, "appropriate" risk controls as measured by historical drawdowns and volatility and that can show they have protected capital during down Inside markets, the documents from the Feb. 22-23 board meeting show. Equity-focused Viking Global saw a Marcus Frampton, Alaska’s director of private markets, declined to comment. slight loss in February, while Alaska currently has nine managers in its program that invests directly in hedge funds. Renaissance's equities fund gained It plans to invest a total 5 percent of the firm’s assets, or about $2.8 billion, in managers in the month: Returns in Brief via that program, the documents said. As of Dec. 31, Alaska had a 4.5 percent exposure to commingled funds, either directly Macro funds run by Prologue and or via the funds of hedge funds from which it is redeeming. The move to allocate to State Street are closing: Closures managers directly will save Alaska $15 million a year, according to the documents, as it allows the wealth fund to cut the layer of fees paid to funds of funds for making Ray Dalio jolts Bridgewater as Jon investments.
    [Show full text]
  • Credit Default Swaps: Indices, Curves and Their Relationship to Volatility
    Find our latest analyses and trade ideas on bsic.it Credit Default Swaps: indices, curves and their relationship to volatility Introduction Credit Default Swaps (CDSs) have had an interesting trajectory to say the least, starting out as a niche derivative, they rose to prominence after the Russian financial crisis of 1998, ballooning into a market worth an enormous $62.2 trillion in 2007. In 2008, this market promptly collapsed, producing a mushroom cloud worthy of Warren Buffet’s designation of CDSs as ‘financial weapons of mass destruction.’ However, the CDS market is far from finished, standing at $8.8 trillion in the first half of 2020 according to the Bank for International Settlements. In this article we’ll give a quick primer on the theory underpinning these derivatives and explore CDS indices and their arbitrage, curve trades, and the relationship between credit risk and equity volatility, proposing a pairs trade. What are Credit Default Swaps and how do they work? Credit Default Swaps are over the counter financial contracts that allow investors to regulate their exposure to credit risk. While the most straightforward use of credit derivatives is to hedge the risk derived from investing in bonds or other credit securities, they are also used to express views on the creditworthiness of one or more entities (i.e., the governments or corporations who issue the bonds.) Beyond taking a simple directional bet in the form of buying/selling a single-name CDS, investors can express their view on the relative value of two different credits (pairs trading), the time when an entity will default (curve trading), the capital structure of the entity etc.
    [Show full text]
  • How Profitable Is Capital Structure Arbitrage?
    How ProÞtable Is Capital Structure Arbitrage? Fan Yu1 University of California, Irvine First Draft: September 30, 2004 This Version: January 18, 2005 1I am grateful to Yong Rin Park for excellent research assistance and Vineer Bhansali, Nai-fu Chen, Darrell Duffie, Philippe Jorion, Dmitry Lukin, Stuart Turnbull, Ashley Wang, Sanjian Zhang, Gary Zhu, and seminar participants at UC-Irvine and PIMCO for insightful discussions. The credit default swap data are acquired from CreditTrade. Address correspondence to Fan Yu, UCI-GSM, Irvine, CA 92697-3125, E-mail: [email protected]. How ProÞtable Is Capital Structure Arbitrage? Abstract This paper examines the risk and return of the so-called “capital structure arbitrage,” which exploits the mispricing between a company’s debt and equity. SpeciÞcally, a structural model connects a company’s equity price with its credit default swap (CDS) spread. Based on the deviation of CDS market quotes from their theoretical counterparts, a convergence-type trading strategy is proposed and analyzed using 4,044 daily CDS spreads on 33 obligors. We Þnd that capital structure arbitrage can be an attractive investment strategy, but is not without its risk. In particular, the risk arises when the arbitrageur shorts CDS and the market spread subsequently skyrockets, resulting in market closure and forcing the arbitrageur into liquidation. We present preliminary evidence that the monthly return from capital structure arbitrage is related to the corporate bond market return and a hedge fund return index on Þxed income arbitrage. Capital structure arbitrage has lately become popular among hedge funds and bank proprietary trading desks. Some traders have even touted it as the “next big thing” or “the hottest strategy” in the arbitrage community.
    [Show full text]
  • Carefully Consider the Fund's Investment Objectives, Risk Factors
    Saba Capital Management, L.P. (“Saba”) Launches an ETF Focused on Closed-End Funds, Including a Rates Hedge (Bats: CEFS) March 20, 2017 Saba launches CEFS, an actively managed ETF that seeks to generate high income by investing in closed-end funds trading at a discount to net asset value (“NAV”) and hedging the ETF’s risk to rising interest rates. This is Saba’s first ETF; Saba is a well-known alternative investment products firm. Closed-end funds are listed investment vehicles that trade at a premium or discount to NAV as a result of market technicals and sentiment. Saba specializes in fixed income and equity closed-end funds trading at a discount to NAV, given they typically offer higher yield and return potential than the underlying securities. A small portion of that excess return is utilized to finance the portfolio’s interest rate hedge. “Many closed-end funds are trading at an attractive discount to their net asset value,” said Boaz Weinstein, Founder and Chief Investment Officer at Saba. “In an environment where investors are searching for yield, we believe closed-end funds offer high income and a margin of safety due to the discount.” The ETF offers access to Saba Capital’s portfolio managers who have years of experience trading and hedging closed-end funds. Saba Capital’s investment process includes proprietary models that dynamically rank closed-end funds across a variety of factors, including yield, discount to NAV and quality of underlying securities. In addition, CEFS seeks to outperform index-based closed-end fund products by actively trading the portfolio in an attempt to capture the widening and narrowing of discounts to net asset value.
    [Show full text]
  • The Big Shorts Saba Capital Netflix Drama
    THE 2020 ADVISER AWARDS THE BIG SHORTS SABA CAPITAL NETFLIX DRAMA ACTIVIST INSIGHT MONTHLY VOLUME 9 ISSUE 11 | DECEMBER 2020 CONTENTS ACTIVIST INSIGHT MONTHLY, DECEMBER 2020. 03 EDITOR’S LETTER | JASON BOOTH, ACTIVIST INSIGHT 04 FEATURE: THE 2020 ADVISER AWARDS 18 THE TERMINATORS | ACTIVIST IN FOCUS: SABA CAPITAL | JASON BOOTH, ACTIVIST INSIGHT 22 NETFLIX DRAMA | IURI STRUTA, ACTIVIST INSIGHT 25 ESG GOES TO WASHINGTON | ESG CORNER | ELEANOR O’DONNELL, ACTIVIST INSIGHT 27 DISCOVERY TIME | VULNERABILITY REPORT: DISCOVERY INC | IURI STRUTA, ACTIVIST INSIGHT 30 THE BIG SHORTS | IBM | ELEANOR O’DONNELL, ACTIVIST INSIGHT 32 SHORT NEWS IN BRIEF 33 NEW SHORT INVESTMENTS 34 NEWS IN BRIEF 38 NEW INVESTMENTS 40 MONTHLY SUMMARY All rights reserved. The entire contents of Activist Insight Monthly are the Copyright of Activist Insight Ltd. No part of this publication may be reproduced without the express prior written approval of an authorized member of the staff of Activist Insight Ltd, and, where permission for online publication is granted, contain a hyperlink to the publication. The information presented herein is for information purposes only and does not constitute and should not be construed as a solicitation or other offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction, or as advice of any nature whatsoever. PUBLISHED BY: 4 Old Park Lane Image credits (All Shutterstock.com) Activist Insight Ltd Mayfair, London, W1U 6PZ Page 7: Evergy, APNPhotography; Page 9: HP, Tomasz +44 (0) 20 7129 1314 Wozniak;
    [Show full text]
  • Inside a Moneymaking Machine Like No Other
    Inside a Moneymaking Machine Like No Other The Medallion Fund, an employees-only offering for the quants at Renaissance ​ ​ ​ Technologies, is the blackest box in all of finance. ​ Katherine Burton November 21, 2016 Sixty miles east of Wall Street, a spit of land shaped like a whale’s tail separates Long Island ​ Sound and Conscience Bay. The mansions here, with their long, gated driveways and million-dollar views, are part of a hamlet called Old Field. Locals have another name for these moneyed lanes: the Renaissance Riviera. That’s because the area’s wealthiest residents, scientists all, work for the quantitative hedge fund Renaissance Technologies, based in nearby East Setauket. They are the creators and overseers of the Medallion Fund—perhaps the world’s greatest moneymaking machine. Medallion is open only to Renaissance’s roughly 300 employees, about 90 of whom are Ph.D.s, as well as a select few individuals with deep-rooted connections to the firm. The fabled fund, known for its intense secrecy, has produced about $55 billion in profit over the last 28 years, according to data compiled by Bloomberg, making it about $10 billion more ​ ​ profitable than funds run by billionaires Ray Dalio and George Soros. What’s more, it did so in a ​ shorter time and with fewer assets under management. The fund almost never loses money. Its biggest drawdown in one five-year period was half a percent. “Renaissance is the commercial version of the Manhattan Project,” says Andrew Lo, a finance professor at MIT’s Sloan School of Management and chairman of AlphaSimplex, a quant research firm.
    [Show full text]
  • Filed: New York County Clerk 12/06/2016 12:16 Pm Index No
    FILED: NEW YORK COUNTY CLERK 12/06/2016 12:16 PM INDEX NO. 653216/2015 NYSCEF DOC. NO. 102 RECEIVED NYSCEF: 12/06/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x PUBLIC- SECTOR PENSION INVESTMENT BOARD, : Plaintiff, : Index No. 653216/2015 - against - : AMENDED COMPLAINT SABA CAPITAL MANAGEMENT, L.P., : SABA CAPITAL OFFSHORE FUND, LTD. and BOAZ WEINSTEIN, : Defendants. : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x - Plaintiff Public Sector Pension Investment Board ("PSP"), by its attorneys, for its Amended Complaint against defendant Saba Capital Offshore Fund, Ltd. (the "Feeder Fund" or "Fund"), alleges upon knowledge with respect to itself and its own acts, and upon information and belief with respect to all other matters, as follows: SUMMARY OF THIS ACTION 1. PSP brings this action to recover the damages it has suffered as a result of the Feeder Fund's breach of the contractual duties it owed to PSP as an investor in the Feeder Fund, a hedge fund managed by Saba Capital Management, L.P. ("Saba Management") and controlled by Boaz Weinstein ("Weinstein," together with Saba Management, "Saba"). The Fund engaged in this wrongdoing by artificially manipulating the value of PSP's investments in the Fund in order to benefit Saba at the expense of PSP. 2. As part of a master/feeder hedge fund structure, the Feeder Fund allocated substantially all of its assets to a master hedge fund (the "Master Fund"), also managed by Saba Management, that invested in securities across the capital structure of a 1 of 12 number of different companies. Under governing Fund organizational documents, the securities in the Master Fund's investment portfolio were to be valued by Saba in good faith in accordance with an applicable valuation policy.
    [Show full text]
  • The Other Side of Wall Street
    Praise for The Other Side of Wall Street “Todd blows up the typical Wall Street stereotype and proves without a shadow of a doubt that nice guys can finish first. This book captures the essence of what it means to not only be a good trader, but to be a better person. If you read one book about Wall Street this year, this should be it.” —Guy Adami, CNBC’s Fast Money “Todd courageously reminds us that success in life isn’t about what happened yesterday, or what may have occurred today—both good and bad—but what we are doing to make tomorrow better, despite it all. His journey is humbling and inspirational.” —Peter Atwater, President, Financial Insyghts LLC and former Treasurer, Bank ONE “Todd’s unique combination of trader bravado and reflective sentimentality makes The Other Side of Wall Street a must-read for anybody who wants to go beyond the headlines to see how the financial world really works.” —David Callaway, Editor-in-Chief, MarketWatch “Todd Harrison takes you on a high-speed train ride across a landscape inhabited by the financial wizards of our time. And he does it with his eyes wide open to the excesses and utility from an insider’s point of view. This is real life played out to the hilt! Enjoy the ride....” —Bill Cella, former CEO, Magna Global “Fasten your seat belt as Todd Harrison takes you on a fast-paced and wild ride through the vicissitudes of his dramatic life. Harrison’s gift for storytelling is on every page, and in the end, will bring a smile to your face.” —William Cohan, author of Money and Power “Todd Harrison puts readers in the front row for a very personal story about his search for the true meaning of wealth.
    [Show full text]