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Friday, 7 December 2012

Triple-Dip Recession in UK and USA October Industrial Production Joins Disappointing Q4 Data




Britain's industrial output dived by 3 percent year-on-year in October, according to the Office for National Statistics (ONS), in the latest piece of UK economic data that suggests the country is back in decline after emerging from recession in the third quarter of the year.

Manufacturing production tumbled at the start of the final quarter, reported the ONS, which followed worrying private business surveys showing slowing activity across two of the economy's three main sectors.

Between September and October, production fell by 0.8 percent, marked by a 3.9 percent decline in mining and quarrying output and a 1.3 percent fall in manufacturing.

Coke and refined petroleum manufacture plummeted by 19.6 percent month-on-month, which the ONS said was largely due to planned maintenance at productions sites.

"Although we should not focus too much on one month's figures, it is clear that the manufacturing sector is facing major obstacles to a sustainable recovery," said David Kern, chief economist at the British Chambers of Commerce (BCC).


"However there is no justification for pessimism. Manufacturing is still a significant sector of our economy and is still benefiting from a competitive exchange rate, notwithstanding sterling's rise over the past year.

"Weak growth in world trade will limit the scope for significant rises in manufacturing exports, but the sector is well-managed, and has the potential to recover.

"Crucially, many manufacturing firms have been able to maintain their skillbases during the recession."

Private sector service firms reported their slowest rate of rising business activity for almost two years in November in a monthly index compiled from surveys of purchasing managers.

Britain's service sector accounts for around three quarters of its economy.

In the same measure for the construction sector, firms reported a renewed slowdown in activity as output sank back into contraction during November.

The sector saw its sharpest fall in new business orders since April 2009.

Manufacturing purchasing managers reported a rise in activity, though not enough to lift the sector out of its continued contraction.

Leading economic forecasters such as the Bank of England and International Monetary Fund all predict a worsening outlook for UK growth.

Independent fiscal watchdog the Office of Budget Responsibility slashed its forecast for 2012 to a -0.1 percent decline from original predictions of 0.7 percent growth.

UK GDP swelled by 1 percent in the third quarter, ending the double-dip recession, lifted by the London 2012 Olympic Games and a positive base effect in the data, as anomalous lost output from an extra public holiday for the Queen's Diamond Jubilee corrected itself.

With a series of disappointing figures in the final three months of the year, some economists believe the country is headed for a triple-dip recession.

Bank of England policymaker Martin Weale warned of a potential triple-dip in October.

"I certainly would not say there is no risk of [a triple-dip recession] happening," he said.

Germany may fall into recession in 2013
CNNMoney
Germany's central bank said the country may slip into recession early next year, confirming Europe's biggest economy has lost much of its immunity to the economic gloom pervading the region. "The cyclical outlook for the German economy has dimmed ...
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Japan Says Recession Has Probably Started
Wall Street Journal
TOKYO—An index of data reflecting the current state of Japan's economy fell in October for the seventh straight month, indicating a high possibility that the country has already fallen into a recession. The coincident composite index, whose 11 ...
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Wall Street Journal
Small business hiring plans hit post-recession low as fiscal cliff nears
Washington Post
... instead pulled back further on their already bleak hiring plans. In fact, a new Gallup poll shows that small business owners expect to add fewer new jobs in the coming year than they have at any point since the depths of the recession in late 2008 ...
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'Dire' manufacturing data pushes UK closer to triple-dip
The Guardian
A rise of 1% between July and September brought the longest double-dip recessionsince the 1950s to an end, but this was partly due to a temporary boost from the London Olympics. The economy has been flatlining over the last two years. Markit's chief ...
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The Guardian
Manufacturing points to fresh recession
The Times (subscription)
Manufacturing output fell in October at the fastest pace since June, reinforcing fears the economy will shrink again in the final three months of the year having just escaped from recession. Britain has suffered two recessions in the past four years ...
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Recession took toll on worker benefits
Cincinnati.com
Greater Cincinnati and Northern Kentucky are doing better after clawing their way out of the GreatRecession, but the economic downturn took a toll on workers' wages, benefits and health care coverage, according to a report released today. The United ...
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Triple-Dip Recession? October Industrial Production Joins Disappointing Q4 Data
IBTimes.co.uk
Britain's industrial output dived by 3 percent year-on-year in October, according to the Office for National Statistics (ONS), in the latest piece of UK economic data that suggests the country is back in decline after emerging from recession in the ...
See all stories on this topic »

IBTimes.co.uk
Republicans Are More Willing to Cause Another Recession than Abandon the Rich
PoliticusUSA
Every creature on this planet has a purpose in life whether it is an animal that exists to procreate, or a human who studies to learn how to build bridges, and regardless the end to be attained, it takes ardent dedication to that purpose to find a ...
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ABC 33/40 - Birmingham News, Weather, SportsBronner: Recession looms ...
Alabama's News Leader
MONTGOMERY, Ala. (AP) - The head of Retirement Systems of Alabama is warning of dire consequences for the economy if political leaders in Washington D.C. can't reach agreement on the so-called fiscal cliff. David Bronner said that if leaders can't ...
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Kevin Conroy's Blue Rooster flies through the recession with focus on ...
Puget Sound Business Journal
Kevin Conroy, founder and president of Blue Rooster, with some of his staff and one of his many mascots at their offices in a converted industrial building in Seattle's Northlake district. Conroy also runs a winery in the same building, and staffers ...
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Still Optimistic about Kingfisher Airlines





Lenders to Kingfisher Airlines will meet in the week starting December 16 to decide on their future course of action regarding their Rs. 7,000 crore exposure to the beleaguered airline, Shyamal Acharya, deputy managing director of SBI, told NDTV. Most of the lenders have classified their loans to the airline as non-performing assets.

Mr Acharya said SBI had waited long for Kingfisher to clear its dues, adding, however, that the bank was still optimistic that the loan will be repaid.

At the meeting Diageo funds will also be discussed, he added. On November 9, the companies jointly announced that Diageo will acquire a controlling 53.4 per cent stake in Vijay Mallya-promoted United Spirits for Rs. 11,166 crore (nearly $2 billion). (Read: Diageo strikes Rs. 11,000 crore deal with Mallya's United Spirits)

However, United Breweries group chairman Vijay Mallya has made it clear that the United Spirits deal will have no implications on the Kingfisher situation. After the deal was announced, Mr Mallya said both United Spirits and Kingfisher would be dealt as two separate situations.

The liquor baron’s deal to sell a stake in United Spirits could throw a lifeline to his grounded Kingfisher Airlines, but pulling the carrier back from the brink will not be easy. His decision to give up control of his group's flagship company as Kingfisher heads towards the point of no return suggests that he is unwilling to write off his airline business, bankers and industry analysts had said when the deal was struck.

The proceeds from Mr Mallya's deal with Diageo will not be enough in themselves to rescue the ailing airline, which has failed so far to find fresh investment to prop it up or a global carrier willing to play white knight. It could still give him enough to make a piecemeal payment to his creditors and draw them back to the negotiating table for fresh loans and another restructuring of the airline's debt.




Kingfisher’s brand value has gone down, Mr Acharya told NDTV, adding that it would like to hike its exposure, at Rs. 1,500 crore currently, to the airline.



SBI has an exposure of Rs. 1,500 crore to the Bangalore-based airline, which has not been serviced since January this year. Launched in May 2005, the airline has not reported a single penny in profit and has bank debt over Rs. 7,000 crore and unpaid interest thereon since January, apart from over Rs. 1,000 crore in vendor and tax arrears. It also has accumulated losses of nearly Rs. 10,000 crore, apart from the salary dues of the past seven months. The Centre for Asia Pacific Aviation has said a fully funded turnaround for Kingfisher would cost at least $1 billion.

Labour unrest towards the end of September led to the airline suspending operations from October 1 and on 19th of the same month, the regulator DGCA had suspended its flying licence till further orders for its failure to come up with a viable plan of financial and operational revival.

Airport operators have also asked the DGCA to keep on hold the renewal of Kingfisher's license, which is slated to expire on December 31, until their dues are cleared.





Kingfisher ramps up eco agenda and ups home design advice
Retail Week
DIY giant Kingfisher is to ramp up its eco agenda and give more attention to helping shoppers visualise how to do up their homes after carrying out a European home survey on 15,000 households.Kingfisher group chief executive Ian Cheshire said two of ...
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Kingfisher plays for 3A title tonight
Enid News & Eagle
Kingfisher quarterback Grant Newton (right) jogs back to his teammates after running a play as coach Jeff Myers instructs Thursday at the Yellowjackets' practice field. Newton is one of 11 KHS seniors who will play in their third 3A state title game ...
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Turkish Airlines to begin code share agreement with Air Canada



Turkish Airlines has entered into a code share agreement with Air Canada scheduled to take effect in early 2013.

The agreement will give Turkish Airlines passengers the chance to transfer to more U.S. destinations via Toronto. For Air Canada passengers, it will ensure seamless connections on a single itinerary for those traveling beyond Istanbul throughout Turkey and to points in Central Asia, Africa and the Middle East. Passengers will have the opportunity to earn and use miles on both Turkish Airlines and Air Canada flights.

View slideshow: Turkish Airlines news
“We are extremely delighted to sign the code share agreement with Air Canada, as this code share partnership serves as an example of Turkish Airlines’ target to maximize the travel opportunities offered to passengers through the extensive networks of both airlines.," explains Temel Kotil, Ph.D., President and CEO of Turkish Airlines.


Turkiah Airlines and their code share agreement with Canada
Photo credit:  Turkish Airlines
Toronto is a good location for Turkish Airlines to use as a North American gateway.

"We will have a chance to transfer our passengers to more US and Canadian domestic destinations via Toronto by connecting our networks,” adds Kotil.

One of the fastest growing airlines in the world, Turkish Airlines flies to more than 200 destinations in more than 90 countries and has been named “Best Airline Europe” two years in a row by consumer ranking group, Skytrax.


Still optimistic about Kingfisher Airlines: SBI
NDTV
Lenders to Kingfisher Airlines will meet in the week starting December 16 to decide on their future course of action regarding their Rs 7,000 crore exposure to the beleaguered airline, Shyamal Acharya, deputy managing director of SBI, told NDTV. Most ...
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With Oil Prices Low, Watch The Airlines
Forex Pros
One sector of the market that's about to take off is airlines. Oil prices are moving lower and the chart for the index shows a very positive technical outlook. It has been moving in a very technical pattern since bottoming in March of 2009 with a ...
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Delta Airlines sued over mobile app privacy policy
NDTV
California sued Delta Airlines Inc. on Thursday, alleging the Atlanta-based company is breaking state law by not warning users that the airline is collecting sensitive information each time customers contact the company on its "Fly Delta" mobile ...
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NDTV
Turkish Airlines to begin code share agreement with Air Canada
Examiner.com
The agreement will give Turkish Airlines passengers the chance to transfer to more U.S. destinations via Toronto. For Air Canada passengers, it will ensure seamless connections on a single itinerary for those traveling beyond Istanbul throughout Turkey ...
See all stories on this topic »
Messi Named Global Brand Ambassador For Turkish Airlines
TheSportsCampus.com
International soccer superstar Leo Messi was named Global Brand Ambassador for Turkish Airlinesat a ceremony today at the Camp Nou Stadium in Barcelona, Spain, after signing theagreement in September 2012.The FC Barcelona forward joins the ranks ...
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Fuel Import Plan to Ease Airline Pain: Corporate India
Bloomberg
The petroleum ministry agreed to allow airlines to use refiners' infrastructure at airports when they import the fuel, Aviation Minister Ajit Singh said in a Dec. 4 interview. Oil Minister Veerappa Moily said the next day that his ministry will discuss ...
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Southwest Airlines Applies For Additional Slots At Ronald Reagan Washington ...
Daily Markets
DALLAS, Dec. 7, 2012 /PRNewswire/ — Southwest Airlines (NYSE:LUV) today announced it has filed an application with the U.S. Department of Transportation (DOT) for slot exemptions that would allow Southwest to offer nonstop service between Ronald ...
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FAA lifts ban on US airlines flying into Iraq
USA TODAY
For years, Iraqi Airways and Royal Jordanian were the only two companies to make regular passenger flights in and out of Iraq. Now the Federal Aviation Administration is allowing U.S. commercial flights fly into two northern Iraq airports, including ...
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Hong Kong Airlines may switch A380 order for A330s
ATWOnline
Hainan Airlines' subsidiary Hong Kong Airlines is considering changing out its Airbus A380 orders in favor of the A330 and delaying the A380 delivery date. The airline is reevaluating its A380 orders due to a decline in market demand, especially on its ...
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Southwest Airlines November traffic dips
MarketWatch
NEW YORK (MarketWatch) -- Southwest Airlines Co. (NYSE:LUV) said Friday it flew 8.1 billion revenue passenger miles in November, down 1.5% from 8.3 billion miles flown in the year-ago period. The carrier's November load factor fell to 80% from 81.6%.
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How to: Choose an Aviation Management Company






Ajit Singh asks CMs to reduce aviation fuel taxes
Hindustan Times
In an attempt to bring down operating cost of airlines, civil aviation minister Ajit Singh on Friday asked chief ministers of states to reduce taxes on aviation fuel. "We have written to chief ministers several times on the issue, but they are all ...
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Clouds gather on soaring aviation's horizon
swissinfo.ch
An economic impact study published in May 2011 by the Civil Aviation Office showed that the three international and four regional airports had a combined economic effect of at least SFr9.7 billion ($10.35 billion) in 2008 – up from SFr6.7 billion in 2004.
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swissinfo.ch
The International Civil Aviation Day
Manila Bulletin
In 1996, on the initiative of the International Civil Aviation Organization (ICAO), the United Nations General Assembly officially recognized the 7th of December as International Civil Aviation Day, a global celebration to create and consolidate ...
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H+S Aviation Expands CT7 ECMP Overhaul Agreement with GE Aviation
The Leading Aviation Industry Resource for News, Equipment and
EVENDALE, OHIO — December 7, 2012 — H+S Aviation expanded its CT7 Engine Overhaul Subcontract Agreement (EOSA) with GE Aviation to include all CT7-5A and CT7-9B ECMP (Engine Care Maintenance Program) commercial engine shop visits ...
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Antigua Needs Own Civil Aviation Authority
Caribarena Antigua
The Eastern Caribbean Civil Aviation Authority (ECCAA) The Editor: The Eastern Caribbean CivilAviation Authority (ECCAA) is the regulatory body for Civil Aviation in the Organization of Eastern Caribbean States. It regulates aviation in Antigua and ...
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How to: Choose an Aviation Management Company
St. Louis Business Journal
When it comes to choosing the right aviation management firm, the terms “cost savings” or “best price” have no place in the selection process, according to Jeremy Cox, vice president of JetBrokers, a Chesterfield-based company that brokers aircraft.
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Not bullish on aviation stocks: Sajiv Dhawan, JV Capital Services
Economic Times
ET Now: What about some of these stocks which have rallied a bit, there is United Spirits of the world or the aviation stocks on deal or news flow of deals have gone up quite a bit anything in that space that you have a view on? Sajiv Dhawan: See again ...
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Aviation Industry Promotes English for Workers
CRIENGLISH.com
Several Chinese airlines and other aviation industry companies gathered Friday in Beijing for a seminar to discuss the importance of English-language proficiency for those who work in the sector to accelerate the global appeal of domestic airlines. CRI ...
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Nigerian Aviation Industry Generates $25 Billion
Ventures Africa
VENTURES AFRICA – Reports indicate that over $25 billion has been generated in Nigeria by foreign and domestic airlines, charter service providers and cargo operators. According to ThisDay, the earnings have been generated from passenger tickets, ...
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Think positive (and back it up) - Phoenix Small Business Marketing

Think positive (and back it up) - Phoenix Small Business Marketing ...
I have been doing these columns for a couple of years now and have to send kudos out to the sources I quote who give me a treasure trove of business and ...
www.examiner.com/article/think-positive-and-back-it-up
What helps you think positive thoughts? - Yahoo! Answers
Doing something fun ... self goals kitties puppies nature ... I think about people less fortunate than me. I look at my material belongings and think, "Some people can ...
answers.yahoo.com/question/index?qid...
Magnolia - Think positive
Write a comment. You must be logged in to write a comment. If you're not a registered member, please sign up. Magnolia. photo. Blog search. Latest comments ...
my.opera.com/themagnolia/blog/2012/12/03/think-positive

Sebi asks fund houses, bourses to push new equity scheme

Sebi asks fund houses, bourses to push new equity scheme
mydigitalfc.com
Giving a further leg-up to the implementation of Rajiv Gandhi Equity Savings Scheme (RGESS), the Securities and Exchange Board of India (Sebi) on Thursday directed stock exchanges, depositories,mutual funds, asset management companies (AMCs), ...
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Keeping it simple for small-town investors
Business Standard
For small-town investors, the friendly neighbourhood Life Insurance Corporation of India (LIC) agent could soon be replaced by a mutual fund distributor. The Securities and Exchange Board of India ( Sebi), in a recent circular, allowed postal agents ...
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NAVs surge as markets registered marginal gains
Moneycontrol.com
Equity Mutual Funds hovered in the positive terrain alongside Indian Benchmark Indices. As markets registered marginal gains, most of the equity categories ended higher registering very few decline. On the sector space, Banking & Finance and FMCG ...
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Moneycontrol.com
Best & Worst ETFs and Mutual Funds: Large Cap Blend Style
WealthManagement.com (blog)
The Large Cap Blend style ranks first out of the twelve fund styles as detailed in my style rankings for ETFs and mutual funds. It gets my Neutral rating, which is based on aggregation of ratings of 39 ETFs and 1,046 mutual funds in the Large Cap Blend ...
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Thursday, 6 December 2012

US stock Mutual Funds suffer biggest outflows this Year 2012 - 13


Investors in U.S.-based funds  pulled the most money out of stock mutual funds this year in the
past week, possibly out of concern that taxes on capital gains
could rise in 2013, data from Thomson Reuters' Lipper service
showed on Thursday.



Stock mutual funds suffered outflows of $4.14 billion in the
week ended Dec. 5, the most since December of last year. Stock
ETFs, however, raked in $7.69 billion in new cash, with the SPDR
S&P 500 ETF fund topping demand with inflows of $3.18 billion.
    Retail investors are concerned about the prospect of higher
taxes on capital gains and could be taking profits from stock
mutual funds, said Lipper analyst Matthew Lemieux.
    Investors in ETFs, meanwhile, "don't seem to have the same
concerns as mutual fund investors," said Lemieux.
    Overall, stock funds had net inflows of $3.55 billion, less
than half the previous week's inflows of $7.38 billion.
    ETFs are generally believed to represent the investment
behavior of institutional investors, while mutual funds are
thought to represent the retail investor.
    Bond funds had inflows of $1.18 billion, modestly trailing
the previous week's inflows of $1.81 billion. Aside from a
meager $8.2 million into bond ETFs, all of the inflows were into
bond mutual funds.
    The benchmark S&P 500 index fell 0.33 percent over
the reporting period as negotiations between U.S. President
Barack Obama and Congress over the looming "fiscal cliff" of
roughly $600 billion in tax increases and spending cuts
continued.
    Toward the end of the reporting period, President Obama told
Bloomberg Television that a Republican proposal to resolve the
crisis was "out of balance" and said any deal must include a
rise in income tax rates on the wealthiest Americans.
    Despite negative reactions in the stock market, investors
showed greater appetite for risk in high-yield corporate bonds
and invested $653.2 million into funds that hold the bonds,
above the $532.9 million invested in higher-quality
investment-grade corporate bond funds.
    Funds that hold safe-haven U.S. Treasuries, meanwhile, had
outflows of $320.26 million, the most since late October.
Investors also parked a massive $29.7 billion in low-risk
money-market funds.
    Investors may be aiming for extra yield before the end of
the year, while also using money market funds as a way to store
cash, said Lemieux.
    The weekly Lipper fund flow data is compiled from reports
issued by U.S.-domiciled mutual funds and exchange-traded funds.
    The following is a broad breakdown of the flows for the
week, including exchange-traded funds (in $ billions):
   
 Sector                    Flow Chg  % Assets  Assets     Count
                           ($Bil)              ($Bil)    
 All Equity Funds          3.554     0.13      2,861.014  10,045
 Domestic Equities         2.477     0.12      2,136.817  7,446
 Non-Domestic Equities     1.077     0.15      724.197    2,599
 All Taxable Bond Funds    1.188     0.08      1,505.007  4,704
 All Money Market Funds    29.702    1.28      2,358.373  1,388
 All Municipal Bond Funds  0.489     0.15      324.993    1,342



Mutual funds bet on banking debt funds
Economic Times
Religare Mutual Fund, Principal Mutual and Axis Mutual Fund already have banking debt funds in their portfolios. According to distributors, almost all leading fund houses including Reliance Mutual, ICICI MF and Birla Sun Life are planning to launch ...
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Economic Times
Equity mutual funds at 52-week high
Times of India
CHENNAI: The recent upturn in markets has pushed up the performance of equity mutual funds(MFs). Net asset values ( NAV) of a vast majority of funds have hit their 52-week high. The buoyancy in recent weeks has resulted in NAVs of even the laggards ...
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US stock mutual funds suffer biggest outflows this year -Lipper
Reuters
By Sam Forgione NEW YORK, Dec 6 (Reuters) - Investors in U.S.-based funds pulled the most money out of stock mutual funds this year in the past week, possibly out of concern that taxes on capital gains could rise in 2013, data from Thomson Reuters' ...
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Fidelity Offering Hedge-Fund Play
Wall Street Journal
The mutual fund opened for business last week with more than $700 million from Fidelity, according to people familiar with the fund. It has made investments with nine managers, including Chilton Investment Co., Jana Partners and York Capital Management ...
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