Belo Corp., Dallas, on Jan. 4 split its G.B. Dealey Retirement Pension Plan from the A.H. Belo Corp. pension plan, according to a Belo news release.
The Dealey plan will serve as the defined benefit plan of Belo Corp.
A.H. Belo Corp. spun off from Belo Corp. in February 2008; the spinoff of the pension plans was approved by the two companies on Oct. 10.
The original plan had $370 million in assets, Paul Fry, Belo Corp. vice president of investor relations and treasury operations, said in a telephone interview. About 60% of the assets, or about $222 million, goes to the G.B. Dealey plan and the remainder will stay in the A.H. Belo plan, he said.
TA Associates buys stake in Evanston Capital
TA Associates acquired a minority ownership stake in hedge fund-of-funds firm Evanston Capital Management through some of its private equity and subordinated debt funds.
Terms were not disclosed. Philip Nunes, a spokesman for TA Associates, declined to give the size of the stake the private equity manager has taken in Evanston Capital.
Evanston Capital will continue to operate independently under its own name, managing about $4 billion for institutional and family office clients, Mr. Nunes confirmed.
David Wagner, Evanston Capital's founder and CEO, will continue in his role “for the foreseeable future,” according to a joint news release from the two firms.
Principals of Evanston Capital all have signed multiyear contracts and non-compete agreements and will continue to invest their own money in the firm's hedge funds of funds. An equity incentive plan also was put in place to give more Evanston Capital employees an ownership stake, according to the release.
“Evanston Capital has a blue-chip management team with a long track record of successfully investing in hedge funds. ... We anticipate Evanston Capital will continue its pace of measured growth and look forward to helping management pursue their objectives,” Todd Crockett, a TA managing director, said in the release.
Energy, infrastructure group spins out of TCW
TCW Group's energy and infrastructure group was spun out and renamed EIG Global Energy Partners, Jessica Emond, EIG spokeswoman, confirmed in an e-mailed response to questions.
R. Blair Thomas, who was CEO of the group, will hold the same position at the new firm, which has moved to Washington.
EIG, with $8.5 billion under management, will continue to invest in energy and energy-related infrastructure projects and companies worldwide, Ms. Emond wrote.
“We will continue to have an economic interest in EIG-managed funds through 2020,” according to a TCW statement. “We anticipate that TCW will continue to market EIG investment opportunities, and we look forward to continuing a successful business relationship that began in 1982.”
KeyCorp spins out fund-of-funds business
KeyCorp spun out its Key Capital Corp. private equity fund-of-funds division, which was renamed Cuyahoga Capital Partners, confirmed Bart Shirley, managing principal at Cuyahoga.
Mr. Shirley was managing director at Key Capital. Chris Hanrahan, also a former Key Capital managing director, will also be managing principal of Cuyahoga.
Cuyahoga will continue to manage balance-sheet funds and third-party private secondary funds, KCC Investors I, II and III, with a total assets under management of less than $1 billion.
Goldman Sachs fund buys Mount Lucas stake
Goldman Sachs' Petershill Fund will acquire a minority stake in global macro hedge fund manager Mount Lucas Management, confirmed Andrea Raphael, a Goldman Sachs spokeswoman.
Ms. Raphael would not disclose the terms of the agreement.
A news release from Mount Lucas indicated that the $1 billion Petershill Fund is acquiring a “passive minority interest” in the company, which “will retain complete autonomy over its management, operations, and investment strategies.”
Mount Lucas manages $1.8 billion in three strategies.
Also, “a substantial portion of the proceeds from the transaction will be reinvested in Mount Lucas' funds,” according to the release.
Former Insight duo creates hedge fund
Two former portfolio managers from Insight Capital Research & Management have launched a hedge fund firm, Diablo Vista Capital Partners.
The co-founders, Lance Swanson and Lee Molendyk, both will have the titles of managing partner and portfolio manager.
The new firm is based in Concord, Calif.
Mr. Swanson said in an interview that the duo opened a hedge fund and not a separately managed account because the hedge fund structure and addition of short positions will allow them to improve on returns.
The firm will use bottom-up in-depth fundamental analysis to select equities for long and short investments in all economic sectors, Mr. Swanson said.
At Insight, Messrs. Swanson and Molendyk oversaw the small-cap growth, small/midcap growth, all-cap growth and concentrated growth portfolio team. Randall Yurchak was named portfolio manager for the all-cap growth portfolio and co-portfolio manager for the small-cap growth, concentrated growth and small/midcap growth portfolios, said Jim Collins, Insight's CEO and chief investment officer.
Mike Ashton become co-portfolio manager for the small-cap growth, concentrated growth and small/midcap growth portfolio.
Further information about Messrs. Yurchak and Ashton could not be learned by press time.
Danish fund avoids bonds from most-indebted EU nations
ATP, Hilleroed, Denmark, won't touch government bonds issued by the European Union's most indebted nations as it deems the risk too great, according to the CEO of the 418 billion Danish kroner ($73.4 billion) pension fund.
“We invest in government bonds in order to purchase interest-rate risk, whereby we try to avoid credit risk entirely,” said CEO Lars Rohde in an e-mailed reply to questions Jan. 5. “This means that we for a long time have completely avoided government debt issued by Greece, Ireland and so forth; our European government bond holdings only include Danish, German and, to a lesser degree, French bonds.
“When we invest in government bonds, it's absolutely critical for us that there can be no doubt that we'll get our money back,” Mr. Rohde said.
ATP returned 5.7% on its investments in the first nine months of 2010, it said in its quarterly report on Oct. 28.
Goldman Sachs sees 21% S&P 500 return in 2011
The S&P 500 stock index will produce a 21% total return this year, according to a report Jan. 7 from Goldman Sachs researchers.
The return will consist of a 19% increase in the index level to 1,500 and a 2% dividend yield, they write in their report, “U.S. Equity Views.” The index ended 2010 at 1,257.64; it closed Jan. 7 at 1,271.5.
“We forecast that at year-end 2011 the nominal size of the U.S. economy will be 5% larger than today,” to $15.3 trillion in terms of gross domestic product, David J. Kostin, managing director and U.S. investment strategist in global investment research at Goldman Sachs Group, wrote in the report.
Goldman Sachs economics research unit forecasts a U.S. real GDP growth, adjusted for inflation, of 3.4% in 2011 and 3.8% in 2012. It forecasts the 10-year U.S. Treasury note yield will rise to 3.75% at the end of 2011 and 4.25% at the end of 2012, from 2.8% in 2010, while the two-year Treasury rate will rise to 1% in 2011 and 2% in 2012, from 0.7% in 2010, the report said.
Auto enrollment, escalation on rise, Callan says
More defined contribution plans are using automatic enrollment and auto escalation, according to a Callan Associates survey.
In a survey of 90 DC plans in October, 51.3% used auto enrollment, vs. 43.9% in 2009, according to a news release describing the survey. Plans using auto escalation climbed to 46.2% from 33.8%.
“There were a lot of pleasant surprises after years of sobering findings,” Lori Lucas, defined contribution practice leader at Callan, said in an interview, referring to stock market turmoil and a shaky economy.
The news release said inflation is one of the highest concerns among plan executives. “As a result, real return and TIPS funds were the most commonly added options in 2010 and will likely keep that spot in 2011,” the news release said. Nancy Malinowski, a Callan spokeswoman, said in an e-mailed response to questions that the firm didn't provide percentages about usage.