Shares of hedge fund favorite Rite-Aid crumbled on Thursday,
dropping 26.5 percent to close at $2.89, after Walgreens Boots
Alliance canceled its planned acquisition of the drugstore
chain. Instead, Walgreens will acquire half of
Rite-Aid’s stores. Five of Rite-Aid’s
ten largest shareholders at the end of the first quarter were
Adage Capital Management,
Highfields Capital Management,
Two Sigma, Greenlight Capital, and Pentwater Capital
Management. On the other hand, shares of Walgreens rose more
than 1 percent.
Ring out the old ring in the new. While many
long-established hedge funds that have had strong reputations
for decades have lately suffered from mediocre performance,
redemptions, and fee cuts, new funds are apparently thriving.
According to a new study from Preqin, so-called first-time
funds with a track record of three years or fewer have posted
gains of 14.10 percent over the past 12 months. This compares
with an 11.91 percent gain generated by a universe of funds
Preqin calls first-time funds defined as having less than $300
million in assets. All hedge funds in the data
scorekeeper’s universe generated gains of just
10.22 percent over the past 12 months. The funds with track
records of three years or less have also easily beaten the
other two groups over the past three and five years.
"Emerging hedge funds may be more prone to failure, either
due to their strategies being untested through market cycles or
as a result of their small size, making them more vulnerable to
capital losses," Preqin states in a new report. "Therefore,
investors expect emerging manager hedge funds to generate
strong returns in order to compensate for the higher risk that
can be associated with investing in them."
Preqin tracks a total of 14,621 active hedge funds,
including 1,759 first-time funds with $300 million or less in
assets and 867 first-time funds with a track record of three
years or fewer.
Two Sigma Ventures led the $8.5 million financing for Homer
Logistics, a food delivery startup. Homer said in a press
release it plans to use the proceeds to expand its research
capabilities and technical team.
S. Donald Sussman’s Paloma Partners Management
disclosed it owns 5.5 percent of Quinpario Acquisition Corp. 2,
a special purpose acquisition company that went public in 2015.
In January sharholders approved an extension for the date by
which it must complete an initial business combination to July
24, 2017. In January Quinpario had also agreed to merger with
Source HOV and Novitex Holdings in a deal valued at about $2.8
billion. Quinpario shareholders are scheduled to meet July 11
to approve the deal.