John Thomas Hedge Fund Manager Sues to Block SEC Hearing (1) (Businessweek)
A Houston hedge-fund manager facing U.S. Securities and Exchange Commission claims that he defrauded investors by steering bloated fees to the John Thomas Financial Inc. brokerage sued to block an agency hearing. George Jarkesy Jr., who according to the complaint could be fined $100 million and barred for life from the securities industry, said if the SEC’s administrative proceeding is allowed to go forward it will violate his rights to due process and equal protection under the U.S. Constitution.
Dow Chemical Resists Spinoff Proposal and Increases Stock Buybacks (New York Times)
The Dow Chemical Company (NYSE:DOW) on Wednesday appeared to rebuff a proposal by an activist hedge fund manager, as it also announced measures intended to make shareholders happy. The company said it would triple its authorized share buyback program this year, to $4.5 billion from $1.5 billion worth of stock. It also said it would increase its first-quarter dividend by 5 cents, to 37 cents a share. The moves, Dow said, were part of its previously announced strategy. Wall Street was paying particularly close attention to the announcement because of recent moves by Daniel S. Loeb, the hedge fund manager who runs Third Point.
Hedge funds hit by passport rules (Financial News)
Marketing restrictions are a key part of the Alternative Investment Fund Managers Directive, the controversial legislation aimed at regulating the hedge fund and private equity industries, which was transposed into national laws last July. Managers have a year’s grace to transition to compliance. The legislation affects not only European managers but also those based outside Europe. Jerome Lussan, chief executive of Laven Partners, a consultant and law firm to the alternative investment industry, said: “If you’re going to sell a fund today, you need as much law as you need performance.” Laven has recently set up the Laven Global Fund Distribution Platform to help managers register a fund for local distribution and advise them on marketing strategy.
Canadian Dollar To Sink To 70 Cents, Hedge Fund Manager Says (Huffington Post Canada)
A California hedge fund manager who notoriously went all-in against the Canadian economy last year expects the loonie to fall to 70 cents. Vijai Mohan, head of Hyphen Partners LP, told the Globe and Mail a Canadian dollar worth 70 cents U.S., “if not worse,” is possible within five years. That’s especially the case if the divergence between the U.S. and Canadian economies continues to grow, he said. Though others have called for the loonie to keep falling, Mohan’s forecast may be the most pessimistic. Goldman Sachs is calling for an 88-cent loonie this year.
TPG Capital says it is raising up to $2 billion for bridge fund (CNBC)
TPG Capital LP, a private equity firm that is behind some of the world’s largest leveraged buyouts, said on Wednesday it was asking some of its key investors for up to $2 billion to spend on deals until it raises a new $10 billion flagship fund. Founded in 1992, TPG has been one of the private equity industry’s most successful firms, turning its founders, David Bonderman and James Coulter, into billionaires. But some of its bets went sour in the last six years, weighing on the performance of its funds.
