Long known for pushing companies to take actions to increase or unlock value, Carl Icahn is delivering a bit more to his own shareholders. Icahn Enterprises, the billionaire’s publicly-listed investment vehicle, will up its annual distribution to $4.00 per depositary unit, payable in cash or additional shares, from a prior payout of 40 cents in cash and $1.00 in additional shares. …Monday’s announcement was just the latest development to put Icahn’s name in the spotlight this year. The activist – who invests for himself after returning all fee-paying capital in the spring of 2011 – made a sizable bet on Netflix, Inc. (NASDAQ:NFLX) late last year that has profited handsomely and is believed to have a long position in Herbalife Ltd. (NYSE:HLF).
Norwatt Leads Power Fund Rout as Nordic Price Trends Ease (BusinessWeek)
Almost every hedge fund specializing in Nordic power posted losses last year as surplus water for generating energy kept prices oscillating in a narrow range, confounding expectations for a steady retreat. Energy Invest and Power Focused, run by Gjoevik, Norway- based Norwatt AS, slid 17 percent and 15 percent respectively, the most among eight funds with at least $157 million invested in Nordic electricity. Seven of the eight posted negative returns, generating a median loss of 11 percent, compared with gains of 0.8 percent in 2011 and 13 percent in 2010, according to a survey of managers by Bloomberg.
Brussels takes aim at fund pay (CityAM)
EUROPEAN authorities have unveiled strict plans to curb the pay of London’s alternative fund managers, in a move which could see their compensation treated in the same way as that of bankers. The proposals, laid down by the European Securities and Markets Authority (Esma) yesterday, target the bonuses of senior executives at hedge funds and private equity funds to bring pay controls in-line with the increasingly stringent remuneration policies of City banks.
New York fund manager arrested on Ponzi scheme charges (III)
A New York fund manager was arrested on Monday on charges of orchestrating a Ponzi scheme and stealing around $2 million from three hedge fund investors, U.S. authorities said. Federal prosecutors charged Jason Konior, 39, with defrauding investors by promising to match their investments in his fund, Absolute Fund LP, many times over. Prosecutors said he used $2 million of the money he collected from three hedge funds to pay his own expenses and to cover redemption requests from prior investors, according to the criminal complaint dated February 7. Konior’s lawyer Douglas Jensen of the law firm Park & Jensen LLP had no comment on the case when contacted by Reuters.
Agrium-Jana Feud Heats Up (FoxBusiness)
Fertilizer maker Agrium Inc. (NYSE:AGU) named two directors to its board and said it held discussions with Jana Partners LLC to resolve a proxy battle with its largest shareholder, but those talks ended after Jana rejected a proposed settlement. Agrium is in the midst of a battle with U.S. hedge-fund Jana Partners, which in late November proposed a slate of five new directors for election to Agrium’s board. Jana has also pressured the fertilizer maker to spin off its retail business that sells seed and other crop inputs to farmers. Agrium has said it doesn’t believe a spinoff would be in the best interests of its shareholders.
NML May Demand Information From Argentina’s National Bank (BusinessWeek)
A hedge fund that holds defaulted Argentine bonds won approval from a federal judge in New York to demand information about the nation’s assets worldwide from Banco de la Nacion Argentina, to help it understand Argentina’s “financial circulatory system.” U.S. District Judge Thomas Griesa said Elliott Management Corp.’s NML Capital may go forward with a subpoena requiring BNA to produce documents “relating to any assets or accounts maintained at BNA by Argentina or for Argentina’s benefit, any debts owed by BNA to Argentina and transfers into or out of Argentina’s accounts” as part of NML’s attempts to seize assets to pay what it’s owed on the bonds.
Olympic Gold-Winning Swimmer Joins Andurand (Finalternatives)
From swimming pools to pooled investments: Olympic gold medal-winning swimmer Clement Lefert has joined hedge fund Andurand Capital Management as an intern. Pierre Andurand, founder of the oil and commodities hedge fund and a former member of the French junior national swim team, confirmed the addition of Lefert to Bloomberg. Lefert will start as an analyst in May with the goal of becoming a trader, said Andurand. The 25-year-old Lefert was part of the French 4X100 meter freestyle relay team that won gold at the London Summer Olympics. He as an economics degree of USC and a master of finance from the Ecole des Hautes Etudes Commerciales du Nord.
Spartan Fund Management launches Noble Bay Energy Fund (Opalesque)
Spartan Fund Management, an emerging hedge fund manager platform located in Toronto has announced the launch of a new fund – the Noble Bay Energy Fund, a multi strategy energy fund managed by Mark Ellis. Prior to founding Noble Bay, Mark was a founding partner of Rayne Capital, a Calgary based energy fund that returned over 63% in 4 ½ years to its investors. Spartan focuses on emerging hedge fund managers in the Canadian market and currently has 7 strategies operating on the platform. These managers typically come from backgrounds such as institutional money managers, or proprietary bank traders. Other strategies on the platform include long/short equity, special situations, quant, short-term directional and micro cap. Noble Bay is the newest addition – a multi-strategy, energy-focused fund.
Galleon’s Far Dodges Prison After Aiding FBI Probe (Law360)
Ali Far, a hedge fund manager who admitted to insider trading and then cooperated in an investigation against Galleon Group LLC, was sentenced Monday to one year’s probation. U.S. District Judge Robert P. Patterson Jr. also sentenced Far, 51, to 100 days of community service and ordered him to pay a $100,000 fine. Far, who worked with Galleon founder Raj Rajaratnam before leaving to found his own hedge fund, turned cooperator after being approached in 2009 by FBI agents then secretly investigating Wall Street insider trading….
Hedge Fund Manager and Newark Accountant Convicted in $40M Investment Fraud Conspiracy (LoanSafe)
On Friday, February 8, 2013, a federal jury in Charlotte convicted certified public accountant Jonathan D. Davey, 48, of Newark, Ohio, of four criminal charges relating to an investment fraud conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The federal indictment, returned in February 2012, charged Davey with serving as the “administrator” for numerous hedge funds for the Black Diamond Ponzi Scheme; with soliciting over $11 million from victims with his own hedge fund, “Divine Circulation Services”; and with tax evasion. The charges arise from the Black Diamond investigation, which has brought criminal charges against 11 individuals and CommunityONE Bank, relating to conduct between October 2007 and April 2007 that deprived over 400 victims of more than $40 million.
Judge accelerates hedge fund’s lawsuit against Apple (CNET)
A federal judge has approved Apple Inc. (NASDAQ:AAPL)’s request to fast-track a lawsuit filed last week by hedge fund manager David Einhorn’s Greenlight Capital in an effort to get the electronics giant to share more of its massive cash reserves with investors. U.S. District Judge Richard J. Sullivan for the Southern District of New York granted Apple Inc. (NASDAQ:AAPL)’s request, moving forward the schedule for a hearing on a preliminary injunction sought by Greenlight Capital. Apple Inc. (NASDAQ:AAPL) had argued that the proposed meeting would have an effect on its shareholder meeting later this month. The modification request suggested that document filing dates be moved up by two to three days and that arguments be scheduled for as early as February 19, three days ahead of the previous February 22.
Citadel’s Equities Co-Chief Weller Said to Leave Hedge Fund (SFGate)
Steve Weller, co-head of Citadel LLC’s global equities group, left after more than a decade at the hedge fund run by Kenneth Griffin, according to two people familiar with the matter. Weller departed from the Chicago-based firm last week, said the people, who asked not to be identified because the information is private. Brandon Haley, 38, who ran the group with Weller, was picked as the unit’s sole head, Katie Spring, a spokeswoman for Citadel, confirmed by phone today. Investors were told about the management change on Feb. 6, she said.
Hedge Fund Kahn Brothers’ Stock Picks for 2013 Include Citigroup (InsiderMonkey)
Hedge funds and other major investors continue to file their 13Fs for the fourth quarter of 2012 this week, disclosing many of their long equity positions as of the end of December. We believe that there are multiple ways to take advantage of this information. One technique we use is to pool 13F filings in our database and use them to formulate investment strategies; the most popular small cap stocks among hedge funds as of the end of June 2012, as listed in our August newsletter, earned an excess return of 18 percentage points between September and January despite the significant delay from when these positions were actually held.
New Edward Burns Hedge Fund Movie Embraces Crowdfunding (Forbes)
Several months ago we spotlighted a soon-to-launch crowdfunding company that sought to bring crowdfunding to independent film. That company – Seed & Spark – has launched and now boasts an upcoming film starring Edward Burns among its list of financing projects. Largely financed by Atlantic Pictures, the film’s working title called Oliver’s Deal and stars Edward Burns (The Brothers McMullen, Sidewalks of New York) as a hedge fund jock working to redeem a $1 billion debt from Peru‘s government. The film also stars Caitlin Fitzgerald (Newlyweds, It’s Complicated) and will be directed by Barney Elliot (True Colours).
SEC proposes BNY Mellon pay $23 million cross-trading settlement (PIOnline)
The SEC issued a proposed plan for distributing $23 million to some institutional clients of BNY Mellon Securities harmed by cross trades that favored some hedge fund customers. According to a January 2011 administrative complaint by the Securities and Exchange Commission, BNY Mellon Securities failed to supervise institutional order desk manager Mark Shaw, whom the agency said manipulated the timing of trades from November 1999 through March 2008 “to advantage a handful of accounts held by individuals and hedge funds at the expense of accounts belonging to various employee stock purchase plans, employee stock option plans, direct purchase and sale plans, and similar plans.”
Duet Starts Venture With Former Credit Suisse Latin Chief (BusinessWeek)
Duet Asset Management Ltd., the hedge-fund group founded by Henry Gabay, started a unit with Pedro Chomnalez, Credit Suisse Group AG’s former head of investment banking in Latin America, and Diego Gradowczyk, Barclays Plc’s ex-head of emerging-markets trading. Duet Latin America is a partnership with CG Capital, an investment company started by Chomnalez and Gradowczyk, London- based Duet said today in an e-mailed statement. The company’s first venture, Merchant Opportunity Fund, will focus on non- financial assets and private equity in Latin America. Duet Latin America may also help manage Duet’s Emerging Markets Real Estate Debt Fund.
Blackstone Said to Add Executive in Push for Fund Stakes (Bloomberg)
Blackstone Group LP hired Anthony Maniscalco to help run a new business that will buy stakes in hedge-fund managers, said three people familiar with the plans, as the firm tackles an investing area where institutions such as Goldman Sachs Group Inc. have had mixed results. Maniscalco, 42, previously head of alternative-asset management in the investment-banking group at Barclays Plc in New York, will be part of the team that evaluates and strikes deals with fund managers, said the people, asking not to be named because the information is private. Peter Rose, a spokesman for New York-based Blackstone, which has $46.1 billion in its hedge-fund group, declined to comment on the hires.
Arden fund creates new alternative investment model (IFLR)
The Arden Alternative Strategies Fund represents a new investment model that is potentially more responsive to events and changing markets than other mutual funds. The fund, which launched with more than $700 million of commitments in November 2012, gives retail investors access to alternative assets – but not without significant risks. Taking the form of a mutual fund format, it is a hybrid representing a conglomerate of hedge fund managers, each responsible for a different so-called sleeve of the fund. In July 2012, an exemptive order was filed with the Securities & Exchange Commission (SEC) to allow the fund to hire new managers or sub-advisors without putting the matter to a shareholder vote, explained Kramer…
Jim Rogers Is Buying Russia; Should You, Too? (TheStreet)
Famed investor Jimmy Rogers was on CNBC last week and when pressed, he said in his opinion Russia is currently the best investment opportunity he sees. There are several individual stocks that trade as ADRs to choose from but anyone interested in following Rogers’ advice might have an easier time choosing between the SPDR S&P Russia ETF (RBL_) or the iShares MSCI Russia Capped ETF (ERUS_). For Rogers, this is part contrarian play because as he said everyone hates Russia. He also believes the country will turn around and President Vladimir Putin will not impede progress.
