Elliott Gains 5.3% In First Half, Trade Publication Says
August 27 2010 - 10:44AM
Dow Jones News
Hedge fund manager Elliott Management Corp.'s fund gained 5.3%
in the six months ended June 30, trade publication Absolute Return
+ Alpha reported late Thursday, citing an investor letter that is
at the heart of a pending court case.
Elliott, founded by Paul Singer, rose just 0.4% in the second
quarter, according to the letter. Its performance for the first
half still outperformed broad market indexes, however. The S&P
500 declined by 6.6% during the period.
Elliott's 26-page investor letter is at the heart of a court
case in which the hedge fund management company is seeking an
emergency court order to force Absolute Return + Alpha to disclose
the source who leaked the investor letter. It argues the disclosure
of Elliott's positions and results would "give other market
participants a competitive advantage to the detriment of Elliott,
affecting Elliott's future results."
A New York State court hearing is scheduled for Sept. 9 and
Absolute Return + Alpha said on its website on Aug. 25 that it will
respond on Sept. 2.
Absolute Return + Alpha's article said Elliott profited in the
second quarter from debt and convertible investments, but lost on
distressed securities in Lehman Brothers Holdings Inc., General
Growth Properties Inc. (GGP), and Washington Mutual Inc. It also
suffered losses from event arbitrage trades on Pacific Century
Premium Development Ltd. (0432.HK) and Epicor Software Corp.
(EPIC), the publication said.
"Opportunities are actually low across the board," Absolute
Return + Alpha cited the letter as saying. "We feel confident that
when the environment changes, we will be able to deploy money in a
cornucopia of attractive situations to fill up whatever capital we
have available."
Elliott noted that its large positions in Argentinean debt, the
Lehman Brothers bankruptcy and Delphi Holdings equity "continue to
develop" but won't be resolved this year, the magazine said.
It added that Elliott will close a second, unspecific
fundraising tranche on Oct. 1, in addition to the $16.9 billion it
currently manages.
-By Amy Or, Dow Jones Newswires, +1 212 416 3142,
amy.or@dowjones.com
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