SAC Up 9.2% YTD, Paulson Heart Boehner, And Other Hedge Fund Observations

For those who live and breathe solely to know how Stevie Cohen has performed at any given moment, we have an update. According to Bloomberg's Hedge Funds brief, SAC Capital told investors last week that his main hedge fund is up 9.2% year to date. It is unclear if he provided any further insight into the firm's troubled relationship with various regulators and law enforcement officials. Some other fund update from Bloomberg. Balestra Capital Partners LP was negative 2.37 percent last month and has lost 7.63 percent year-to-date, according to its monthly results and commentary sent to investors. Brencourt Advisors LLC’s $260 million Brencourt Multi-Strategy Fund lost 90 basis points to drop year-to-date returns to 2.84 percent, according to an email update sent to investors. The merger arbitrage fund gained 22 basis points last month and has returned 2.17 percent through June 30. The Brencourt Credit Opportunities Fund lost 0.95 percent and has returned 3.39 percent in 2011. Broadfin Capital LLC’s Broadfin Healthcare Fund LP returned nearly 9 percent in the second quarter, according to its quarterly letter to investors, a copy of which was obtained by Bloomberg. Long positions in Alkermes Inc. and Hi-Tech Pharmacal Co. Inc. “were the largest drivers of the fund’s performance,” the letter said. The New York-based fund is managed by Kevin Kotler. Summarizing returns by strategy for 2010 and 2011 (table below) shows quite vividly that what worked back in 2010 is no longer in vogue, although the main exception - the best strategy for both years - continues to be Mortgage-Backed arbitrage. Although most curious for some may be that none other than John Paulson is now officially the biggest fan of John Boehner. Read on.

And some other notable hedge funds news:

  • Employees at Paulson & Co. contributed $61,050 to U.S. House Speaker John Boehner’s campaign account, more than any other company. Moore Capital Management LLP employees gave $53,000. The Ohio Republican has raised $6.6 million for his campaign committee. No one from either firm donated to Boehner for his 2010 re-election campaign, according to the Center for Responsive Politics, a Washington-based research group that tracks political money.
  • Christopher Louis Pia, a former Moore Capital Management LP portfolio manager, was barred from trading palladium and platinum on the New York Mercantile Exchange as part of a settlement over charges that he attempted to manipulate prices. Pia agreed to pay more than $1 million to settle allegations of irregular trading between November 2007 and May 2008, according to an order issued by the Commodity Futures Trading Commission.
  • Former SAC Capital Advisors LP portfolio manager Donald Longueuil asked a federal judge to impose a sentence of less than the 46 to 57 months sought by the U.S. for his role in an insider-trading scheme. Craig Carpenito, a lawyer for Longueuil, 35, said his client was seeking leniency from the court saying his client, “not the caricature of a greedy yuppie portrayed by the Government.” He is scheduled to be sentenced by U.S. District Judge Jed Rakoff on July 29.

Source: Bloomberg