Icahn to Almost Double Money With $520 Million CVR Refining IPO (BusinessWeek)
Carl Icahn, who failed to find a buyer for oil processor CVR Energy, Inc.(NYSE:CVI) after taking over the company last year, is poised to almost double his $2 billion investment with the initial public offering of the company’s refineries today. CVR Refining LP (CVRR), which is seeking as much as $520 million in the IPO, would become at least the third refiner in the past year to sell its plants to the public and distribute operating profits to investors. CVR Refining, a master-limited partnership, is scheduled to offer 20 million units today for $24 to $26 each, the Sugar Land, Texas-based partnership said in a regulatory filing.
The Dow Jones Credit Suisse Hedge Fund Index finished up 1.48 per cent for the month of December. Nine of the 10 sub-strategies finished the month in positive territory with emerging markets (2.38 per cent) and event driven (1.98 per cent) leading the way. Dedicated short bias was the only sub-strategy to see negative returns at -2.95 per cent over the month.
Mariner absorbs Concordia as hedge fund consolidation gathers pace (HedgeFundsReview)
Mariner Investment Group is taking over the investment teams and operations of multi-strategy hedge fund Concordia Advisors. Concordia manages around $1 billion in relative value-oriented strategies in the interest rate, credit and equity markets. The company’s 18 investment professionals, led by CEO Basil Williams, will join Mariner following the merger, with Williams becoming Mariner’s deputy chief investment officer.
UK fund manager eyes iCapital.biz (TheMalaysianReserve)
Closed-end fund iCapital.biz Bhd, which fended off a takeover bid by European hedge fund Laxey Partners Ltd recently, is still an interest to City of London Investment Management Co Ltd. The UK-based fund manager, which is seen to be aligned to Laxey, has quietly accumulated iCapital.biz shares since last year and is now estimated to own 7.5% of the Malaysian company. Last November, the fund manager had 6.45% of iCapital.biz, but has gradually increased that portion through a number of purchases, including the latest yesterday for about 10.5 million shares.
Networker Kinnucan Gets 4 Years in Insider Case After FBI Taunts (SFGate)
John Kinnucan, the expert-networker who refused to cooperate in a U.S. probe of insider trading before admitting to passing tips to hedge-fund clients, was sentenced to four years and three months in prison. U.S. District Judge Deborah Batts in Manhattan yesterday rejected arguments by Kinnucan’s lawyers that his actions stemmed from alcohol abuse triggered by the stress of being the target of a federal crackdown on insider trading. Defense lawyer Jennifer Brown also said Kinnucan, the founder of Broadband Research LLC, suffered from an addiction to gambling in the stock market.
Wausau Paper fires back at investment fund critics (WSAU)
Wausau Paper Corp. (NYSE:WPP) and the hedge fund that controls much of their stock is continuing to criticize each other. Monday, Starboard Value publicly criticized the management of Wausau Paper for its decision to put the Mosinee, Rhinelander, and Brainerd Minnesota mills up for sale as they shift their focus to the more profitable tissue market. Starboard officials accused Wausau Paper’s Chairman of the Board Tom Howatt of acting in bad faith and for having a strategy to sell off underperforming paper mills. Wausau Paper fired back Tuesday. The Board of Directors sent Starboard Value’s Managing Member Jeffrey Smith a letter, and released it to the media as well.
Hitachi International’s pension launches alternative funds (IPE)
Hitachi International Electric Pension Fund has gradually introduced a number of new strategies via private equity, non-life insurance and hedge funds in line with its plan to expand its alternative investments from this fiscal year. Its new policy asset mix in April 2012 lowered its allotment to domestic and foreign stocks and more than doubled its alternative investment ratio from 10% to 23%, aiming to raise the efficiency of its overall portfolio. Its alternative investment framework since April comprises private equity (6%), absolute-return strategy (15%) and REIT (2%). Its latest action concentrates on the former two categories.
