Hedge funds, always quick to take advantage of a crisis, have ramped up their offerings of Europe-focused investments this year to take advantage of perceived opportunities coming from the Brexit vote. It's a strategy that says as much about fund marketing as potential returns.
In the second quarter of this year, ahead of the June 23 referendum in which British voters opted to leave the European Union, research firm Preqin found 16 per cent of newly-launched hedge funds had an investment strategy that was focused on European investments. In the preceding quarter, just 1 per cent of new funds were Europe-focused.
"The run-up to and aftermath of the U.K.'s decision to leave the EU caused volatility across several markets within Europe and beyond," says Amy Bensted, London-based head of hedge fund products at Preqin, in a new report. "Hedge fund managers have seen increased opportunities to capitalize on this turbulence, and more European-focused hedge funds have been launched by managers both in and outside the region."
The pitch for these new funds almost writes itself. Legendary investors such as George Soros have made their names with canny wagers on volatile European currency markets. Story
Verizon to announce Yahoo deal
Verizon Communications Inc. will announce plans to buy Yahoo Inc.'s core assets for about $4.8-billion (U.S.) on Monday, a move that would finally seal the fate of the iconic Web pioneer after months of speculation and pressure from investors.
News of the takeover is expected to come before the market opens, said a person with direct knowledge of the situation who asked not to be identified because the information isn't public.
The deal includes Yahoo real estate assets, while some intellectual property is to be sold separately, the person said. Yahoo will be left with its stakes in Alibaba Group Holding Ltd. and Yahoo Japan Corp., with a combined market value of about $40-billion.
A deal would end Yahoo's months-long exploration into strategic alternatives amid pressure from activist investor Starboard Value LP. It will add the web company and its millions of daily users to Verizon's growing stable of media properties and is also likely to bring to an end the reign of Yahoo chief executive officer Marissa Mayer, who tried and failed to re-invent Yahoo as an independent company. Story
IN CASE YOU MISSED IT
Shaking up Scotiabank: How Brian Porter is planning to build the bank of the future. Story
WEEKEND DEALS
Brookfield Asset Management Inc. and Appaloosa Management LP join to bid on SunEdison Inc.'s stake in TerraForm Power Inc. Story
Anglo American PLC's De Beers has put its Snap Lake diamond mine in Canada up for sale after suspending operations at the unprofitable mine last December, a spokesman said on Friday. Story
Online gambling group 888 Holdings and casino operator Rank Group are joining forces with a view to making a bid for William Hill. Story
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