John Paulson’s Paulson & Company has launched a new hedge fund, Paulson Pure Spread Fund. The fund specifically focuses on merger arbitrage spreads, according to an person with knowledge of the fund. It is said to be complimentary to the New York firm’s flagship merger arb strategy and created in response to demand for this approach. The fund has a minimum investment of $1 million.
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In a merger of hedge funds of funds, 50 South Capital Advisors, a subsidiary of Northern Trust Corporation, agreed to acquire the investment management business of Aurora Investment Management, a wholly-owned subsidiary of Natixis Global Asset Management. The combined company will have $9 billion in alternative assets under management.
“The addition of new clients and experienced professionals from Aurora strengthens 50 South Capital and deepens our expertise in providing alternative investment solutions that combine unique manager sources of alpha with strong risk management and oversight,” Northern Trust Asset Management president Stephen Potter said in a press release. In June 2015, Northern Trust established 50 South Capital Advisors, from the Northern Trust Alternatives Group.
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Ricky Sandler’s Eminence Capital established a 5.8 percent stake in Restoration Hardware Holdings as of February 25. The firm, which sometimes engages in activist investments, filed the position as a passive investment. Shares of the high-end home furnishings company had plunged by 26 percent on February 25 after the company reported disappointing fourth quarter earnings. However, the stock surged more than 5 percent on Wednesday on the news of Eminence’s investment. The New York hedge fund manager did not disclose a position in the stock as of year-end.
