Hedge funds posted an average gain of 0.38 percent
in April, bringing their return for the year to just 0.20
percent, according to a new report from data tracker eVestment.
Activist strategies led the way, generating 2.21 percent
returns last month. However, they are only up 0.27 percent for
the year. Relative value credit and macro strategies, however,
lost money in April, although very small amounts. Managed
futures eked out a small gain in April. But they remain in the
red for the year, down 2.32 percent, making it the worst
performing strategy this year. Less than 30 percent of managed
futures funds tracked by eVestment are in the black so far in
2018, according to the report.
The Baupost Group said in a regulatory filing that it agreed
to exchange notes and $10 million with Keryx Biopharmaceuticals
for $164.75 million of zero-coupon convertible senior notes due
2021 in a private placement. The new notes are convertible into
as many as 35.58 million shares of common stock. The eclectic
investment firm, headed by Seth Klarman, said it is paying a
total of $125 million of notes plus $10 million of cash.
Shares of hedge fund favorite Booking Holdings fell
4.75 percent, to $2,080.02, after forecasting 7 percent to 11
percent room-night growth in the second quarter, which was
below expectations. Wall Street analysts had a mixed reaction
to the news from the company, formerly called The Priceline
For example, Credit Suisse trimmed its estimate
from $2,300 to $2,250, but raised its estimates. "The
trade-off/benefit to the lower growth is higher margins and
profit dollars, some of which is being redeployed on what
appears to be a long-term move to change the product offering
from a pure hotels-only transactional proposition to what we
presume should be an intermodal travel service to essentially
replicate what traditional agencies put together in the form of
an all-in, packaged (adding flights, attractions, etc.)
experience," it stated in a note to clients.
According to marketwatch.com, SunTrust Robinson
Humphrey cut its price target to $2,300 from $2,380 but
maintained its buy rating on the stock. "While 2Q outlook for
room-night growth was below Street expectations...we note that
this is in part self-inflicted and driven by the changes made
by Booking on performance advertising channels," the report
stated, according to marketwatch.com.
On the other hand, UBS raised its price target from
$2,250 to $2,320 and maintained its buy rating.