David Einhorn of Greenlight Capital Management is considered one of the most successful hedge-fund managers of all time. With a net worth of more than $1 billion and assets under management of more than $6 billion, Einhorn’s smallest moves are watched closely by insiders. Einhorn’s reputation has been built upon the short sale. He first rose to fame in 2002 after taking a huge short position in Allied Capital and making millions on accusations of fraudulent accounting practices that sent its stock crashing.
Elliott, Aurelius To Respond To Argentina Payment Plan (FINalternatives)
Argentina on Friday offered two options to the holdouts, either cutting the bonds’ face-value or extending their terms. Either would put the holdouts, led by Elliott Management and Aurelius Capital Management, on the same terms as those who participated in Argentina’s 2010 debt exchange.
Deer Park Launches New MBS/ABS Fund (FINalternatives)
Steamboat Springs, CO-based Deer Park Road Corp. has launched a new mortgage/asset-backed fund after closing its flagship $750 million STS Partners Fund. The new Burgess Creek Fund will employ a strategy similar to one Deer Park has been running in a $170 million separate account for a large institutional investor.
Herbalife CEO Compensation Falls to $10.3 Million in 2012 (Bloomberg)
Herbalife Ltd. (NYSE:HLF) said Chairman and Chief Executive Officer Michael Johnson was paid compensation of $10.3 million in 2012, a drop from the previous year when his pay was inflated by the value of stock awards. Johnson was paid a salary of $1.24 million, an increase of 0.5 percent from 2011, and received options valued at $5 million and incentive compensation of $3.71 million, the Cayman Islands- based nutrition company said in a proxy filing today.
NY federal appeals court reinstates suit against billionaire hedge fund founder Steven Cohen (Fox News)
A lawsuit accusing multibillionaire hedge fund founder Steven A. Cohen of hiding assets in a 1990 divorce was reinstated Wednesday — the latest chapter in a long-running legal battle with his ex-wife. A district court judge in Manhattan had thrown out Patricia Cohen’s suit in 2011, saying its fraud allegations were too old and unsubstantiated to go forward. Her husband’s lawyers had accused her of filing it merely to “to harass and generate media attention against Mr. Cohen” nearly 20 years after the couple split amid his rise to one of the richest men in America.
Armajaro plans hedge fund diversification and expansion (Risk.net)
Under the leadership of CEO Harry Morley, commodity house Armajaro Asset Management is planning for a long-term future, running a diversified stable of hedge funds and significantly increasing AUM. In an imposing main meeting room at Armajaro Asset Management (AAM), a large glass bowl dominates the board-sized table. The bowl is filled with chocolates made with cocoa from Trinidad, Venezuela, Madagascar, Ecuador and other countries. The sweets serve as a constant reminder, if it were needed, of the foundation of AAM.
Hedge Funds Up 0.72% In March (FINalternatives)
Hedge funds posted broad-based, if relatively small, gains in March as the global stock surge continued unabated. Hedge Fund Research’s HFRX Global Hedge Fund Index gained 0.72% last month and is up 3.13% on the year. By contrast, the Standard & Poor’s 500 Index rose more than 3% last month and was up more than 10% in the first quarter.
UK Hedge Fund Manager Wannabe Arrested In Cold Case Murder (HedgeCo.Net)
Self-proclaimed math whiz and aspiring hedge fund manager Steven Goff, 41, of Ventnor, UK, has turned himself in to the police claiming that he killed a teenager in a 1990 cold case.
Analyst Teeple Released on $200,000 Bond in Insider Case (Bloomberg)
Teeple, an analyst for an unidentified San Francisco-based hedge fund, didn’t enter a plea today before Magistrate Judge Kevin Nathaniel Fox in Manhattan federal court to charges of conspiracy and securities fraud. David Riley, the former chief information officer for Foundry Networks, was charged in March in a felony complaint filed in Manhattan accusing him of tipping Teeple about Foundry’s acquisition by Brocade Communications Systems Inc. (BRCD) The U.S. Securities and Exchange Commission also sued the two, as well as a third man, John V. Johnson.
Gross Says Buffett to Soros Careers Fueled by Expansion (Bloomberg)
Bill Gross, manager of the world’s largest mutual fund, said the most renowned investors from Warren Buffett to George Soros may owe their reputations to a favorable era for money management as expanding credit fueled gains in asset prices across markets. The real test of greatness for investors is not how they navigated market cycles during that time, but whether they can adapt to historical changes occurring over half a century or longer, Gross, 68, wrote in an investment outlook published today entitled “A Man in the Mirror,” named after a song by Michael Jackson.
Soros Redeems From Pershing Square (FINalternatives)
What is clear is that Pershing Square and founder William Ackman have been active in recent months. Most notably, Ackman has engaged in a war of words with nutritional supplements company Herbalife Ltd. (NYSE:HLF), and with longtime nemesis Carl Icahn. Ackman has accused Herbalife of being a pyramid scheme.
