Manager of defunct U.S. hedge fund pleads guilty to fraud (Reuters)
A former hedge fund manager pleaded guilty on Friday to defrauding investors in a $12.6 million scheme, more than five years after the fund collapsed under the weight of failed real estate loans. Lloyd Barriger, who operated Gaffken & Barriger, a Monticello, New York-based investment fund, pleaded guilty in White Plains federal court to charges of securities fraud, mail fraud and conspiracy, the U.S. Attorney’s Office said in a statement. …Barriger’s lawyer, federal defender Mark Gombiner, did not immediately respond to an email seeking comment.
Dell’s Future Is Rocky: Analysts (CRN)
Advice to Dell Inc. (NASDAQ:DELL) VARs: put on your seatbelt things are about to get bumpy. That’s what industry analysts are advising Dell Inc. (NASDAQ:DELL) channel partners as the buyout vote that will determine the company’s future approaches. The vote pits Michael Dell, CEO, Dell Inc. (NASDAQ:DELL) against investor Carl Icahn as they both fight for two different visions of the company. Caught in the crossfire are Dell Inc. (NASDAQ:DELL) channel partners, which nearly unanimously are rooting for Michael Dell to emerge victorious from next week’s vote. Partners are in line with CEO Dell Inc. (NASDAQ:DELL)’s goal of taking his company private and focusing on growth instead of shareholders value—an Icahn priority.
Hedge Funds Raise Gold Bets as Goldman Sees Decline: Commodities (Bloomberg)
Hedge funds raised wagers on a gold rally as speculation that the Federal Reserve will hold off on curbing stimulus drove prices toward the biggest gain in 18 months. Goldman Sachs Group, Inc. (NYSE:GS) expects the rally to reverse. Money managers increased their net-long position by 26 percent to 70,067 futures and options as of July 23, U.S. Commodity Futures Trading Commission data show. The fourth consecutive weekly gain is the longest streak since October. Bullish wagers across 18 U.S.-traded commodities gained 7.4 percent to 615,140. Investors more than doubled bets on lower corn prices to a record net-short holding.
Icahn’s Barbs Reflect a Broader Trend Against Short-Selling (InstitutionalInvestor)
Last week’s Delivering Alpha conference was filled with impressive speakers, lively investment chatter, insightful macro outlooks and even a fair amount of comedy. But ironically for a hedge fund conference, the event – hosted by Institutional Investor and CNBC – was short on one traditional staple: short-selling ideas. Save for permabear Jim Chanos’s case for shorting construction-equipment manufacturer Caterpillar Inc. (NYSE:CAT) and Richard Perry’s condemnation of Japanese corporate bonds, the day was notable for a dearth of suggestions on what investors could profitably sell short.
Hottest trade on Wall Street: Detroit bonds (CNN)
Detroit’s bonds have become the hottest trade on Wall Street, since the Motor City filed for the largest municipal bankruptcy two week ago. Prior to the bankruptcy filing, Detroit’s emergency manager, Kevyn Orr, offered to pay bondholders roughly 10 cents on the dollar to help keep the city going. That would result in huge losses for the city’s original creditors. But hedge funds, particularly those that invest in troubled or bankrupt companies, think these bonds will turn out to be lucrative in the long run. The problem is there aren’t that many available. Few have traded, and the waiting lists are long.
GLG launches Total Return fund (MoneyObserver)
Hedge fund firm GLG Partners has launched a ‘value driven’ Total Return fund for investors. The UK-domiciled Ucits fund will invest across a range of liquid asset classes, including equities, foreign exchange, sovereign bonds, currencies, credit, rates and commodities. The annual management charge for the fund is 0.75 per cent – there is no performance fee. James Ind, who recently joined GLG from Russell Investments, will be responsible for ongoing portfolio management. The fund will be managed by the GLG macro and relative value team, headed by Jamil Baz and Sudi Mariappa.
