Editor’s Note: Related tickers: AutoNation, Inc. (NYSE:AN), Sears Holdings Corporation (NASDAQ:SHLD), Orchard Supply Hardware Stores Corp (NASDAQ:OSH), Berkshire Hathaway Inc. (NYSE:BRK.A), Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Dell Inc. (NASDAQ:DELL), Cisco Systems, Inc. (NASDAQ:CSCO), International Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Oracle Corporation (NASDAQ:ORCL), The Blackstone Group L.P. (NYSE:BX)
Edward Lampert used $393 million of shares in AutoNation, Inc. (NYSE:AN) to meet client redemptions from his main hedge fund, whose investment in Sears Holdings Corporation (NASDAQ:SHLD) has led to volatile returns. Lampert’s ESL Partners LP on June 10 distributed 9.09 million AutoNation, Inc. (NYSE:AN) shares, or about 41 percent of its stake in the auto retailer, to investors who were redeeming their interests in the fund, according to a regulatory filing June 12. The fund also used part of its stake in Orchard Supply Hardware Stores Corp (NASDAQ:OSH) to meet redemptions, filings show.
One Hedge Fund Manager’s War Against Corruption In Russia (HedgeCo)
Hedge fund founder and outspoken critic of corruption in Russia, Bill Browder, has told CNBC that he fears for his life and that if he were to be assassinated, “everyone would know who did it.” Browder’s lawyer, Sergei Magnitsky, was a Russian accountant and auditor who was arrested and died in custody while investigating fraud among Russian officials in 2009. Since 2007 Browder has been living in London after accusing Russian tax officials of embezzlement, Browder has been campaigning against Corruption in Russia ever since.
Icahn Names Four Possible Dell CEO Successors (TheVarGuy)
With a July 18 Dell Inc. (NASDAQ:DELL) shareholder vote fast approaching on Silver Lake Partners’ and chairman Michael Dell’s $24.4 billion proposal to take the embattled PC maker private, activist investors Carl Icahn and Southeastern Asset Management have named four candidates to helm the company should they prevail in the proxy battle. According to a Reuters report, possible candidates to succeed company founder Dell Inc. (NASDAQ:DELL) include Michael Capellas, currently a Cisco Systems, Inc. (NASDAQ:CSCO) board director and former VCE chairman and chief executive, as well as a Silver Lake senior adviser; Michael Daniels, a recently retired International Business Machines Corp. (NYSE:IBM) Services senior vice president and group executive; Mark Hurd, former Hewlett-Packard Company (NYSE:HPQ) chief executive and current Oracle Corporation (NASDAQ:ORCL) president and board member; and Todd Bradley, Hewlett-Packard Company (NYSE:HPQ)’s Printing and Personal Systems executive vice president.
Hedge Fund Research: $116 Billion Locked in Zombie Funds (HedgeCo)
Reuters reports that new data from Preqin shows that there are approximately 1,200 hedge funds that can be described as zombie funds sitting on $116 billion in assets. In a zombie fund, the GP is sitting on their assets past their expected holding period with no intention of making realizations and no plans to raise a successor fund, while continuing to collect management fees from their investors. “No one is a winner when zombie funds are involved and they represent a clear misalignment of interests between the fund manager and investor.
SAC Re ring-fenced from investor flight (Trading-Risk)
Steven Cohen’s hedge fund SAC Capital could face investor withdrawals of up to $3.5bn, or more than half the $6.75bn third-party capital it manages, according to reports. The $15bn SAC Capital also manages significant capital for its founder and has been embroiled in allegations of insider trading since the start of the year. In the first quarter, investors put in notices to pull out $1.7bn from the hedge fund by year-end, while second quarter redemption notices are expected to add…
Tracy Britt of Berkshire is Warren Buffet’s Protege? 28-Year-Old Could Lead Billionaire’s Hedge Fund (ChristianPost)
Tracy Britt of Berkshire Hathaway Inc. (NYSE:BRK.A), Warren Buffet‘s multibillion-dollar hedge fund, could be being groomed to take over the billionaire’s company once he’s retired. Britt is a 28-year-old graduate of Harvard Business School and has only been working as Buffet’s assistant since 2009, but already is managing four of the company’s subsidiaries. Tracy Britt’s Berkshire Hathaway Inc. (NYSE:BRK.A) work has led to rumors that she is Warren Buffet’s much-discussed protégé taking over once Buffet retires, according to The Wall Street Journal. Buffet has mentioned in the past that he already knows who is protégé is, although he refuses to divulge a name.
Scaramucci Plans NYC Eatery With Elite Vibe for Hedge-Fund Crowd (AmericanThinker)
Anthony Scaramucci is teaming up with a restaurant owner and a former Morgan Stanley (NYSE:MS) executive to open a Manhattan eatery catering to hedge-fund and private-equity professionals. The group, which includes restaurateur Eytan Sugarman and David Barrett, a 22-year veteran of Morgan Stanley (NYSE:MS), seeks to raise $4 million for The Hunt and Fish Club, set to open in December. It will have the feel of an elite “clubhouse” and be an alternative to bars and eateries surrounding the Grand Central Terminal in Midtown, which are “not fun” and have unattractive staff…
