Hedge funds storm back into form
With crisis in Cyprus, gloom in the UK's Budget and growing fears of a correction in the US Treasury market, you could be forgiven for thinking markets were as turbulent as ever.
For some, though, the sun is shining: 2013 has seen some of the strongest returns from hedge fund managers in years.
So much so that many managers are quietly speaking of a return to form for the $2tn global industry -- which has hardly covered itself in glory since 2008.
On average, hedge funds -- once known for their high-octane, high-earning trades and outsize manager pay cheques -- have underpeformed most major markets for four years running.
Indeed, excluding 2009, when assets everywhere rallied, the past three years have been dismal. The average fund made just 11 per cent during the entire period, according to Hedge Fund Research.
Compare that with performance for the first two months of this year: up 2.7 per cent for the average fund and just under 4 per cent for the average equity-focused fund manager, HFR data show.
Most top-tier funds have performed far better.
"If you look at CNBC, then everything is in crisis; but if you look at price action, most of the problems this year have been ignored in the markets," says Luke Ellis, president of Man Group, the world's second-largest hedge fund manager. "It feels relatively easy to pick stocks now after a period where trying to make a return out of anything was very hard."
Not that anyone is quite prepared yet to declare the hedge fund industry's fortunes reversed. Rallies -- and subsequent disappointments -- have been a hallmark of the past few years.
"There was definitely a moment in the first quarter of last year where it felt like things were picking up," says Mr Ellis. "And then look what happened. There was definitely a moment like that in the first quarter of 2011 too."
In 2012 the average hedge fund made just over 6 per cent, while in 2011 the average fund lost just over 5 per cent, according to HFR. The S&P 500 rose nearly 13 per cent during the same 24 months.
The proof, says Mr Ellis, "usually seems to come in the second quarter". This year, though, managers are more confident of their chances, even if it is only March.
Indeed, what aggregated performance numbers obscure are some of the more structural reasons why many are more bullish about the markets they are navigating, and the opportunities these provide.
In particular, of course, it is managers' belief that the eurozone crisis -- notwithstanding recent events in Cyprus -- has been brought under control that has boosted industry gusto.
Politicians' and central bankers' apparent commitment to solving the problems in the financial system -- or at least indefinitely propping it up -- have begun to be felt as a "solid floor under markets for the first time", says one leading equity fund manager. And that leaves non-macro managers to concentrate on the details they prefer.
"This year is going to be one of a return to more normal markets where fundamentals play a much more important role," says Melissa Carnathan, EMEA head of capital introductions at JPMorgan. "Fundamentals are going to start having a much bigger impact."
In terms painted with the broadest brush: companies, and not countries, are where opportunities may now lie.
Equity long/short managers -- which focus on going long and short stocks -- have stood out from the crowd in recent months, with many of the sector's biggest names posting large returns.
Lansdowne Partners, Europe's largest equity long/short manager, has seen its flagship fund rise 7.75 per cent in the year to March 8, according to an investor.
Odey Asset Management, another UK-based equity long/short equity fund, has performed well too. Its flagship fund is up 11.5 per cent so far this year.
Some are faring even better. Sloane Robinson's global fund is up 17 per cent for the year to March 8.
In the US, too, equity-focused managers are faring well. Glenview Capital's flagship fund was up just under 11 per cent in the first two months of the year. Leon Cooperman's Omega Advisors has had a strong start too, and was up 6.5 per cent at the end of February, according to an investor.
Two measures point to further good returns for such managers: correlation and dispersion.
With correlation between stocks lower and dispersion higher, managers are better able to use their skill to identify idiosyncratic opportunities.
Investors in hedge funds are following the returns too.
"Many investors had rotated out of equity long/short funds into macro and credit, but last year had a very bullish equity market and investors noticed that," says Ms Carnathan. "Now they are trying to rectify their underexposure. We are seeing a lot of inquiries. We have had more inquiries than in a long time."
Not that those investors - many of them now pension funds and other large, conservative institutions - expect a great amount. "A number of years of muted performance have led people to finally adjust their expectations," says Ms Carnathan. Where hedge funds once promised returns of 20 per cent or more, now 8 per cent will do.
Global Box Office Revenues Show Significant Increase
The Motion Picture Association of America, Inc. (MPAA) has just released its annual Theatrical Market Statistics Report for 2012. It's revealed that international box office receipts for all films released around the world reached $34.7 billion in 2012, an increase of 6% over 2011.
The significance increase of the global box office was driven by growing foreign markets like Russia, Brazil and China. The box office revenues in the Asian country with a population of over 1.3 billion grew by 36% last year to become the largest international market, surpassing Japan.
A total of $2.7 billion was collected through movie tickets in China although the government imposed very strict rules over what films could and could not be screened. By the end of the year, the world's most populous country was placed at the second spot after North America.
In the U.S. and Canada, box office receipts increased 6% over last year to $10.8 billion while domestic ticket prices remained flat. It mainly came from the release of 2D films as revenue from higher-priced 3D films was comparable to 2011 levels at $1.8 billion.
Disney's fantasy adventure wizard movie "Oz: The Great and Powerful" is currently the most popular movie in North America, but it may be changed as animated feature"The Croods" is estimated to bow with more than $40 million next weekend.
Sitting at the third place was Japan which totaled $2.4 billion in 2012, followed by the U.K. and France with $1.7 billion each. India was next with $1.4 billion, Germany and South Korea followed with $1.3 billion each, Russia and Australia with $1.2 billion each and Brazil with $800 million.
"I am happy to report that in 2012, both global and domestic box office were up and so were domestic admissions," said Senator Chris Dodd, Chairman and CEO of the MPAA. "Great storytelling, memorable characters and an ever-innovating theater experience brought more people around the world to the movie theater in 2012 than ever before."
"It's a powerful reminder of just how much movies matter - not just to our culture, but also to our economy. Our industry supports 2.1 million jobs in the United States and more than 120,000 of those jobs are in movie theaters. So as you're looking at this report, it's important to remember the real economic impact these numbers have."
Downsound CEO Josef Bogdanovich & Ninja plan to make history
Downsound Records CEO Josef Bogdanovich believes his company is on a path to create history in dancehall music. He recently signed iconic clash artiste Desmond Ballentine, popularly known as Ninja Man, to his label.
Though many people might think Ninja Man is past his best musically,Bogdanovich is convinced that Ninja Man still has a lot to offer dancehall music.
"This guy is a living legend, he's one of the greatest artistes ever and I certainly think he has a lot to offer to this generation of dancehall fans. He's one of the greatest dancehall acts ever, he has a lot of history behind his name and Downsound plans to make some more with him, you'll see."
Ninja Man, who began his career in the late 1980s, is known for his famous clashes at Sting with the likes of other dancehall luminaries like Shabba Ranks and Super Cat. The self-styled bad boy of dancehall music has remained a prominent fixture on the local music landscape despite his many run-ins with the law over the years.
He recently declared that he has resigned from clashing to focus on the rebuilding of his recording career and the upliftment of dancehall music.
"Mi done do 26 years as the champion of clashing, mi a resign wid mi title like Lennox Lewis, mi do enough, mi a lef it gi KipRich. Mi teach him how fi clash and right off deejay a sting, a fi him time now fi reign and pass on the knowledge to a next youth. Now mi a focus pon mi career wid Downsound," said Ninja Man.
Bobby Brown Is Out of Jail After Serving Only 9 Hours
Singer Bobby Brown has been released from L.A. County Jail after serving mere 9 hours of his 55-day jail sentence. Los Angeles County sheriff's spokesman Steve Whitmore said that Brown was released and outfitted with an electronic ankle monitor Thursday, March 21 because of jail overcrowding and good behavior.
Jail records stated that Brown turned himself in to authorities on Wednesday, March 20 before 10 A.M. and was released at 6:58 P.M. Whitmore said that Brown would possibly serve no more than nine days due to jail overcrowding, time off for good behavior and credit for "good time work time." However, the county probation officials eventually decided to release him earlier and put an electronic ankle monitor on him, suggesting that he cannot travel outside his home for the time being.
A rep for the songwriter says in a statement that he is currently home with his family.
Brown was sentenced to 55 days in prison and four years probation last month after being arrested and charged for his third DUI in October 2012. The star, who pleaded no contest to the charges, also must complete an 18-month alcohol treatment program following his release. "Mr. Brown continues to remain committed to his sobriety," his attorney Christopher Brown says.
Michael Jackson's Sex Abuse Case May Be Revisited During Trial in Lawsuit Against AEG Live
Los Angeles Superior Court Judge Yvette Palazuelos sets rules for the upcoming trial in Katherine Jackson's lawsuit against AEG Live. AEG's team is allowed to revisit events preceding Michael Jackson's death in 2009, including the issue of child molestation charges against the singer.
The judge apparently agrees with the concert promoter's lawyers that the sex abuse case may be relevant to MJ's history of drug abuse and despondency, while Katherine's attorneys argued it should not be brought up again because the late King of Pop was acquitted on all counts.
In the pre-trial hearing, the judge also says the plaintiffs, Michael's mother Katherine and children Paris, Prince and Blanket, could be called as witnesses. Dr. Conrad Murray who was convicted involuntary manslaughter of the singer's death could also be asked to testify, despite the plaintiffs' objection.
Katherine and her grandchildren from Michael sued AEG Live for millions of dollars, accusing the company of negligently hiring Murray and failing to properly supervise him during his duty of caring for the singer ahead of his "This Is It" concert series. MJ died from an anesthetic overdose before the gig was kicked off.
Before the case goes to trial on April 2, Katherine and her teen grandchildren have been called sit for deposition by AEG's lawyers. They also wanted to depose Blanket, who was only 6 when Michael died, but his doctor argued it would be "medically detrimental" to him.
Prince, 16, was deposed earlier this month. The family's lawyers complained that AEG's team asked irrelevant and repetitive personal questions designed "to agitate the boy, creating serious concern among his guardians and attorneys," but the defendants insisted they only asked "legitimate questions appropriate to a wrongful death suit."
The Jackson's lawyers also had objection to the questioning of Katherine, 82. The family matriarch was allegedly interviewed for nine hours over three days and AEG's lawyers are still asking for a fourth chance. The attorneys representing the family believed the session could have been easily done in two or three hours.
Paris was being questioned Thursday, March 21. She was spotted wearing a blue top, jeans, and brown Ugg boots. Her co-guardian, TJ Jackson, was seen accompanying her.
Jude Law joins Jane film shoot exodus
Jude Law has become the latest big name to quit troubled production Jane Got a Gun, which has already had its director and another star exit the project.
The film made headlines earlier this week when Scottish director Lynne Ramsay did not arrive on the Santa Fe set for the first day of shooting.
Ramsay was swiftly replaced by Warrior director Gavin O'Connor, but this did not stop Law also leaving the project.
Michael Fassbender was the first to pull out, citing scheduling conflicts.
The Hunger star's role was taken by Australian actor Joel Edgerton, who remains with the western alongside its leading lady Natalie Portman and Brazil's Rodrigo Santoro.
According to showbiz website Deadline, Law only signed on to the film in order to work with Ramsay and did not wish to remain following her exit.
That earlier departure drew an exasperated response from the film's producer Scott Steindorff, who said he was "shocked and disappointed" by Ramsay's no-show.
The We Need to Talk About Kevin director has made no comment about her involvement in the film or the reasons for her departure.
Jane Got a Gun tells of a woman, played by Portman, who turns to an ex-lover to help her defend her farm against her outlaw husband's former associates.
Police officer denies cavity search and mistreatment of Shanique Myrie
A Barbados police officer accused of conducting a cavity search on Shanique Myrie denied the allegation when she took the stand before the Caribbean Court of Justice (CCJ) today.
Constable Sirphene Carrington also insisted that she did not make any derogatory remarks or searched the luggage of the Jamaican national who was denied entry into the island on March 14, 2011.
During cross examination Myrie’s Attorney, Michelle Brown sought to suggest that Carrington was “gruff, rough and boisterous with her client”.
Brown told the court that prior to taking Myrie to the bathroom during which a demeaning vaginal search was conducted, Carrington said she hated Jamaicans and accused Jamaicans of being liars who came to Barbados to steal men.
“Ms Myrie was never in the bathroom. Ms Myrie was not subjected to a cavity search...,” Carrington said.
Carrington, who was assigned to the Barbados Drug Squad, for two years, testified that she was present during an interview conducted by her superior officer, Constable Everton Gittens but she hardly spoke during the interview, which she estimated lasted for about 15 minutes.
Carrington maintained that Gittens did not search Myrie’s bag or her cell phone - rejecting claims levelled by Brown.
The police officer said Myrie was questioned in relation to the purpose of her visit to Barbados, where she was staying and her relationship with her host.
Carrington told the court that after the interview was completed Myrie was taken to Customs where her bags were searched by officials there.
Carrington said no drugs were found and Myrie was returned to the Immigration office.
The police officer said she left the airport along with Gittens soon afterwards.
But Brown sought to bring into question the accuracy of Carrington’s statement suggesting that it was near identical to the one provided by Gittens.
Carrington maintained it was written by her and no one helped her to word the statement.
Gittens had delivered his testimony ahead of Carrington’s.
Pressed why Myrie was selected for the police interview, Carrington told the court that as a normal practice police interviewed passengers who are referred to the Immigration Supervisor.
Gittens also told the court that he had a feeling Myrie was a drug courier but he later dismissed the thought after conducting an “extensive interrogation” with the Jamaican national.
He told the court he felt Myrie came to work.
The police officer said Myrie was not under arrest and if she wanted to she could have left.
Gittens, who is also assigned to the Barbados Drug Squad, strongly denied suggestions he showed Myrie blue folders which represented Jamaicans who had tried to enter Barbados with illegal drugs.
Gittens also rejected suggestions from Myrie’s lawyer Nancy Anderson that he cut a slipper owned by Myrie, denied her a phone call and threatened to take here to the Queen Elizabeth Hospital to be x-rayed for drugs, while attempting to persuade her that if she told him the truth he would help her.
“I did not make any threats to Ms Myrie,”he said.
During Brown’s cross examination, the police constable stoutly defended his colleague Constable Carrington.
He said Carrington had not made any derogatory statements to Myrie neither did she take her to the bathroom.
“I was the senior officer on duty, no such statement would have been made by Ms Carrington.
“Ms Carrington did not go to any bathroom with Ms Myrie, “he said.
Gittens told the court he discovered Myrie was lying about her host in Barbados after having separate conversations with Pamela Clarke, the woman with whom Myrie said she was staying.
The officer also spoke to Daniel Forde the man who came to the airport to collect Myrie. In a witness statement, Forde said he had asked Clarke for her name and number to give to a visitor he was expecting from Jamaica.
The Trinidad-based CCJ is hearing testimony in the case brought by the 25-year-old Myrie, who alleged that when she travelled to Barbados on March 14, 2011 she was discriminated against because of her nationality, subjected to a body cavity search, detained overnight in a cell and deported to Jamaica the following day.
Source: Jamaica Observer
Dominican military officials among 35 arrested in drug bust
Authorities in the Dominican Republic have arrested 35 people -- including military, police and customs officials -- in a drug bust at the country's busiest airport.
The arrests were made in connection with the seizure of a private jet carrying 682 packets of cocaine in 26 suitcases, the country's drug enforcement agency said Thursday.
The plane had been scheduled to leave the Punta Cana International Airport for France, with a layover in the Azores, authorities said.
A lieutenant colonel, a major and four captains were among those arrested, authorities said. Four Frenchmen also were arrested.
The arrests were made after an investigation that began seven months ago, as investigators also tracked other cases involving the shipment of hundreds of kilograms of cocaine to different countries in Europe, drug enforcement officials said.
Police charge McKeeva Bush
The former Premier of the Cayman Islands, William McKeeva Bush, has now been charged and is due to appear in court early next month.
Mr. Bush answered his bail this afternoon (Wednesday 20 March) and was formally charged with two counts of Misconduct in a Public Office, four counts of Breach of Trust by a member of the Legislative Assembly (contrary to S.13 of the Anti-Corruption Law 2008), and five counts of Theft (contrary to S.241 of the Penal Code 2007 Revision).
The 57 year old charged is said to in the misuse of government credit card and importing explosive materials.
Mr. Bush has been bailed to appear in Grand Court on 12 April 2013.
Meanwhile, His Excellency the Governor Duncan Taylor made it clear upon the Prime Minister’s arrest in December last year, that this was a police investigation not a Foreign and Commonwealth Office Investigation and that the premier’s arrest had nothing to do with the recent arrest of the former Turks and Caicos Premier Michael Misick in Brazil.
Venezuela cutting off contact with U.S. diplomat
Venezuela is cutting off contact with a top U.S. diplomat, the country's foreign minister said Wednesday.
Foreign Minister Elias Jaua said Wednesday that his country's representatives would no longer be talking about improving U.S.-Venezuela relations with Roberta Jacobson, U.S. assistant secretary of state for Western Hemisphere affairs.
Jaua accused the United States of trying to interfere with Venezuela's upcoming presidential election and criticized comments Jacobson made about the April 14 vote in an interview with Spain's El Pais newspaper.
The United States has been denying a steady stream of accusations from top Venezuelan officials since President Hugo Chavez's death on March 5.
"The United States categorically rejects allegations of any U.S. government involvement in any plots to destabilize the Venezuelan government or to harm anyone in Venezuela," State Department spokeswoman Victoria Nuland said on Monday.