Singer, in an email to investors on Wednesday announcing the
offering of up to $5 billion, said that the funds would be used
toward the "possibly large opportunity set that could emerge
when investor confidence is impaired, recent correlations and
assumptions donít work, and prices are changing rapidly."
In a separate note sent out to clients on Friday, and seen by
Reuters, Elliott said that more than $5 billion had been raised
as of Thursday.
New York-based Elliott manages $32.8 billion. That does not
include the fresh $5 billion, which is set up to be drawn from
investors over the next several years.
A spokesman for Elliott declined to comment.
"It is of no surprise that such a talented hedge fund manager
can raise $5 billion," said Arthur Salzer, chief investment
officer of Northland Wealth Management in Markham, Ontario. "In
a world of management fee compression for many funds due to poor
performance, there are always the standouts."
Singer, a conservative billionaire known for his pessimistic
views on the financial markets, said in his pitch to investors,
"We are at an extraordinary juncture in markets and in the
prospects for trading and investing."
He likened markets to a "coiled spring," distorted by more than
eight years of economic stimulus programs by central banks in
the United States and other developed countries.
Singer said the new commitment, the seventh of its kind, will
essentially let Elliott pounce using its hedge funds when and if
that spring uncoils.
"The nature of modern markets is that rich opportunity sets seem
to be ephemeral, providing surprising volatility, bargains and
dislocations for only brief periods of time before governments,
aware of the politically destructive effects of extreme
volatility, rally to take stern actions to keep the balls up in
the air," Singer wrote.
Elliott, according to the letter, has recently focused on
investing in securities of distressed companies, especially
those in the energy sector, and stocks using a corporate
Elliott's current activist bets include BHP Billiton Ltd, Akzo
Nobel and Arconic Inc.
(Reporting by Lawrence Delevingne; Editing by Leslie Adler)
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