Former Nomura MD Launches First Hedge Fund [HFMWeek] Arthur Roulac, formerly of Nomura Securities International, is preparing to launch his maiden hedge fund, HFMWeek has learned. According to a source familiar with the plans, Roulac set up New York-based investment manager Three Court this quarter. The firm’s flagship distressed debt offering is expected to debut with $20m in July with commitments from friends and family.
Rubenstein Said to Tell Investors Carlyle Is a Discount [Bloomberg] Carlyle Group LP (CG) co-founder David Rubenstein told investors he agreed to seek an initial public offering at a discount to rivals, to prove that shares in private-equity firms can raise, according to a person present at the meeting. Rubenstein, speaking yesterday at a meeting in New York where the founders were trying to win over prospective shareholders for the company’s planned IPO next month, said investors come first at Carlyle and the firm considers shareholders investors as well, said the person, who asked not to be named because the information was private.
Hedge Fund Managers See Tough Year for Industry [DealBook] Hedge fund managers are predicting a tough year for the sector in 2012. A report by the consulting firm Rothstein Kass found about half of the 400 hedge fund managers who responded believed that 2012 would be a “a difficult or somewhat difficult” year for the industry. Almost 40 percent expressed concerns that the United States would enter a double-dip recession. Only about 32 percent of those who responded in 2011 thought it would be a rough year for hedge funds.
Hedge Fund Dreams Fuel Man Group Deal Talk at Record Low [Bloomberg] For asset managers seeking hedge fund-like returns on the cheap, Man Group Plc (EMG) is now offering the biggest discount on record. The world’s largest publicly traded hedge-fund manager was valued at 0.65 time’s net assets this week before takeover speculation lifted Man Group’s stock from its lowest price in more than a decade, according to data compiled by Bloomberg. The London-based company also had about $1.7 billion in cash, more than any investment management firm in the industrialized world relative to its market value, the data show.
BlackRock Said to Plan Asia Investment Fund With CIC [Bloomberg] BlackRock Inc. (BLK), the world’s largest money manager, plans to start a fund with China Investment Corp., according to a person familiar with the matter. CIC, the nation’s sovereign-wealth fund, and BlackRock will initially provide capital for the investments, which would be in Chinese companies and businesses that sell products in China, said the person, who asked not to be identified because the details aren’t public. The joint venture will be managed by Liu Erh-fei, who will leave his position as chairman of Bank of America Corp.’s brokerage operations in China, the person said.
Flowers Leaves US For London Berth [FT] Christopher Flowers, the veteran private equity investor, has moved to London from the US, seeing a shift in the balance of investment opportunities to Europe. Mr. Flowers rose to fame a decade ago when he quadrupled his money after scooping up Japan’s failed Long Term Credit Bank but has suffered some high-profile investment missteps since. According to people close to the financier, he moved from New York to London last month and is about to move into a new home in Belgravia. Mr. Flowers has never lived outside the US before.
Morgan Stanley Said to Hire Asia Head of Electronic Trading [Bloomberg] Morgan Stanley (MS) hired Bank ofAmerica Corp. (BAC)’s Gabriel Butler as head of electronic trading for Asia excluding Japan, according to two people familiar with the move. Butler, who was head of electronic trading sales at Bank of America Merrill Lynch where he worked until last week, will start at Morgan Stanley in Hong Kong by August, the people said, asking not to be identified because the move hadn’t been announced. Butler replaces Joseph Sarcona, who was promoted to global co-head of listed derivatives for the electronic trading team in New York, the people said.
Bank Reforms Wipe 10-20 Billion Pounds Off RBS Value-CEO [NYTimes] Tougher UK banking regulations have wiped off as much as 20 billion pounds from the market value of state-backed Royal Bank of Scotland, the bank’s chief executive said. “The UK regulatory reforms on their own have probably cost 10-20 billion pounds from our future market value,” RBS CEO Stephen Hester said in a speech. “We can cope with these extra challenges, but they use up the outperformance we have achieved and they mean that our shareholders, indeed all bank shareholders, will see value recover less well than hoped for.”
A Double-Dip Recession in Britain [NYTimes] Britain has fallen into its first double-dip recession since the 1970s, according to official figures released Wednesday, a development that raised more questions about whether government belt-tightening in Europe has gone too far. The report of an unexpected 0.2 percent decline in economic output during the first quarter of 2012 provoked an outcry in Britain and came on the same day that Mario Draghi, the president of the European Central Bank, shifted his rhetoric on the debt crisis to put more emphasis on growth.
As a Top Banker Leaves Bank of America, Another Joins [DealBook] Months after a management shake-up, one of Bank of America’s most senior bankers, Michael Rubinoff, has left, but the firm has also hired a top UBS executive, Alex Wilmot-Sitwell.
Royal Bank of Scotland Said to Shed M.&A. Business [DealBook] The Royal Bank of Scotland will spin off its mergers and acquisitions business by early next year, as the nationalized British bank continues to cut back on its investment banking unit, according to people with direct knowledge of the matter. Under the proposals, 45 bankers will form a new advisory boutique business out of the spun-off unit, added one of the people, who spoke on condition of anonymity because he was not authorized to speak publicly.
Rochdale Investment Firm Sold To City National [WSJ] Rochdale Investment Management, will be sold to Los Angeles’ City National Bank in a deal announced today, continuing City National’s expansion. Rochdale holds $4.8 billion in assets under management for affluent and high-net worth clients. Combined with City National’s Asset Management, the new firm, City National Rochdale Investment Management, will have $18 billion in its hands and be based in Los Angeles. The business will be lead by Rochdale’s CEO Garrett D’Alessandro.