Editor’s Note: Related tickers: Dell Inc. (NASDAQ:DELL), Citigroup Inc. (NYSE:C), The Blackstone Group L.P. (NYSE:BX)
The most successful campaign initiated by billionaire hedge-fund operator George Soros has been the legalization of marijuana. California has been the focus of most of his efforts. But there are indications that the campaign has gone too far, too fast in Colorado, prompting a backlash from the black Democratic mayor of Denver, who fears his city is becoming a new capital for the marijuana industry. During my recent trip to Denver to cover the National Conference for Media Reform, I visited a “Native Roots Apothecary,” an official dispensary of “medical marijuana” in Denver, and discovered that a Colorado resident can get two ounces of marijuana a day (at an average of $150 an ounce), and “self-medicate” for almost any reason. Even a heavy marijuana user goes through only a quarter of an ounce a day. So fears are growing that “medical marijuana” is quickly becoming integrated into the illegal drug business. It was not supposed to happen this way, but state “regulation” of the industry has been a tragic joke.
Hedge Funder Dan Loeb Bought Sandy Weill’s Sick Yacht (BusinessInsider)
Hedge fund hot-shot Daniel Loeb, the founder of Third Point LLC, recently purchased Sandy Weill’s 200-foot yacht, CNBC’s Kayla Tausche and Robert Frank report. He paid between $50 to $52 million for the former Citigroup Inc. (NYSE:C) CEO’s “April Fool”, sources told CNBC. It was listed $69.5 million in 2011, according to the Wall Street Journal. The price was lowered to $59 million, according to CNBC. Loeb was one of the best paid fund managers in 2012 taking home an estimated $380 million, according to Institutional Investor’s Alpha.
Roubini: ‘Sleeper cell’ behind Boston attack (Politico)
Nouriel Roubini, the rock-star economist who is credited with predicting the collapse of the U.S. housing market, believes he knows who is responsible for Monday’s attack at the Boston Marathon. “So it looks like 1 of the sleeper cells on the Eastern Seaboard woke up. & since the NYC Marathon was cancelled they went for the Boston one,” he tweeted on Monday night, more than seven hours after the explosions. When asked by a follower how he knew, Roubini cited “informed sources.” POLITICO sent multiple emails to Roubini over the last 18 hours requesting comment or more information. We also spoke with Roubini’s assistant, who said she would relay the inquiry to him. He has yet to respond.
Gold’s Fall Costs Paulson $1.5 Billion This Year (CNBC)
The tumbling gold price has personally cost billionaire hedge fund manager John Paulson at least $1.5 billion so far this year, as a decline in the price of the metal turned into a rout. The estimated losses for Mr. Paulson, who has made and lost more money on gold than almost any other hedge fund manager, reflect a bold all-in bet on the precious metal While many investors hold some gold in case of financial calamity or a return of the rampant inflation of the 1970s, since 2009 Mr. Paulson has allowed clients of Paulson & Co to denominate their holdings in gold, rather than US dollars.
HFRX: Hedge Funds Up 0.86% In March, 3.27% In Q1 (Finalternatives)
Hedge funds rose last month amidst a market rally that left the Standard & Poor’s 500 Index up more than 10% in the first quarter, according to data from Hedge Fund Research. The HFRX Aggregate Index wasn’t quite so lucky, closing out the first quarter up 3.27% after a 0.86% rise in March. Master-limited partnerships continued to lead the way, rising 4.8% on the month and 15.39% on the year. Technology and healthcare funds rose an average of 3.49% on the month (6.46% year-to-date), energy infrastructure funds 2.79% (9.08% YTD), yield alternative funds 2.48% (6.37% YTD), real estate funds 2.15% (3.67% YTD) and activist funds 2.1% (4.85% YTD).
Former top T. Rowe Price manager to launch Baltimore hedge fund (BaltimoreSun)
Kris H. Jenner, the manager of T. Rowe Price Health Sciences Fund until his resignation in February, has raised more than $100 million to launch a Baltimore-based hedge fund, Bloomberg News reported. The hedge fund, which will be called Rock Springs Capital, will have a similar investing strategy as Price’s Health Sciences Fund, said Bloomberg, quoting an unnamed person knowledgeable about Jenner’s plans. Jenner had managed the Health Sciences Fund since 2000. It has been one of Price’s top funds, achieving a 15.3 percent annualized return over 10 years, according to Morningstar. Along with Jenner, two of the Health Sciences Fund analysts, G. Mark Bussard and Graham M. McPhail, also resigned. Bussard and McPhail will be running the hedge fund with Jenner, Bloomberg reported.
Kaye Scholer Says Fund’s Claims Imperil Deal In GSC Row (Law360)
Kaye Scholer LLP on Monday pushed for approval of its $1.5 million settlement with the government over alleged ethics violations in GSC Group Inc.’s bankruptcy, but the firm suggested it will back out of the deal if it is forced to defend related claims from an objecting hedge fund. Black Diamond Capital Management LLC, which purchased GSC out of bankruptcy in 2011, objected last month that the law firm’s settlement with the U.S. Trustee’s Office goes “a step too far” in foreclosing third parties like the…
