De Shaw, the leading US hedge fund with over $30 billion in assets, has invested $400 million in a DLF group firm that will set up special economic zones across the country, a person familiar with the situation told ET. This is the first known instance of an overseas private equity/hedge fund investing in SEZs in the country and comes at a time of raging controversy over whether these are meant to drive economic growth or land grab aimed at profiting big businesses.   more »

U.S.-based hedge fund Tudor Investment Corp. plans to inject $100 million into Helios Capital Management Pte. Ltd. and take a 15% equity stake in the India-focused fund company, according to people familiar with the arrangement. Tudor's investment is a sign of continued bullishness on prospects for Indian stocks, which are lagging this year after clocking 40%-plus growth in both 2005 and 2006. Helios is based in Singapore. Tudor, of Greenwich, Conn., is investing $50 million in Helios's equity-focused hedge fund, which holds shares in stocks and single-stock futures, according to the people. Single-stock futures are an unusual type of security available in India but not offered in most Asian markets.   more »

Old Lane, the New York-based, India-focused hedge fund recently bought out by Citigroup, plans to increase its India presence by floating a public asset management company and an infrastructure development company. Apart from the $4-billion hedge fund, Old Lane also has a $500-million India opportunities fund. Floated by three former Morgan Stanley executives, Old Lane plans to invest capital raised overseas in Indian equities and bonds as global investors are enthused with the world’s second-fastest growing economy that recently crossed the $1-trillion mark, said CEO and co-founder Guru Ramakrishnan.   more »

US hedge fund Atticus Capital, the activist investor pushing for change at Deutsche Börse, is expanding its stock exchange investments with a move into India. Atticus purchased a 4% stake in the Bombay Stock Exchange, according to Reuters. It purchased the stake through Atticus Mauritius, a subsidiary of Atticus' funds.   more »

India's central bank on Wednesday night released long-awaited draft guidelines for banks and dealers to begin trading credit default swaps in the country – derivatives that allow banks to hedge against the risk of default. The move will enable banks in India to step up lending to the corporate sector by allowing them to offload some of the risk to third-party investors. "As a part of the gradual process of financial sector liberalisation in India, it is considered appropriate to introduce credit derivatives in a calibrated manner at this juncture," the Reserve Bank of India said in a release addressed to the country's commercial banks.   more »

Hedge fund performance in the first quarter was positive, beating most of the major market indexes, with average fund performance ...   more »