The Hedge Fund Kid and the Treasure Ship (Businessweek)
On Monday, a deep-water exploration ship lingered 160 miles off the coast of Charleston, S.C. The vessel is operated by Odyssey Marine Exploration Inc (NASDAQ:OMEX), a company with a unique business model: It recovers treasure from shipwrecked vessels. Odyssey Marine hopes to retrieve an estimated $86 million in gold from the SS Central America, a steamship sunk during a hurricane in 1857 while it carried large amounts of gold from California. The publicly traded, Tampa-based company is entitled to a substantial percentage of the riches. Naturally, Odyssey Marine is promoting the possibility of a big score on its website. Not everybody is persuaded. Ryan Morris, an activist hedge fund manager who has shorted Odyssey Marine’s stock, insists that nothing of great value is left on the sunken vessel.
Hedge funds wade into systemic risk debate (Financial News)
Representatives from the hedge funds industry have joined the debate over whether asset managers could pose a systemic risk if they fail, arguing that regulators are taking the wrong approach to evaluating potential threats. The Alternative Investment Management Association, the Hedge Fund Standards Board and Brevan Howard are among the industry members that have pushed back against regulators’ proposals. Their comments, in response to a consultation by the Financial Stability Board and the International Organization of Securities Commissions on how to identify systemically important financial institutions beyond the banking and insurance sector, were made public last week.
Hedge-fund Exec: Lewis Is Wrong — Markets Better Than Ever (Moneynews)
Michael Lewis produced a top-selling book by arguing that the U.S. stock market is rigged. To one of hedge-fund operator Citadel LLC’s top executives, small investors have never been more fortunate. “It’s one of the few markets in the world where the little guy gets a better deal than the big guy,” Jamil Nazarali, the head of Citadel Execution Services, said Monday during a panel discussion at the Milken Institute Global Conference in Beverly Hills, California. “Things are much better today than they were 10 to 15 years ago.”
Ex-Hedge Fund Manager Admits $554 Million Fraud (FINalternatives)
Former hedge fund manager Stephen Walsh has pleaded guilty to fraud charges more than five years after he was first arrested and charged. Walsh, who led WG Trading and Westridge Capital Management with Paul Greenwood, admitted to ripping off investors of $554 million over the course of 13 years. His plea comes nearly four years after Greenwood pleaded guilty to the charges.
Investors Question Why Smart Money Bets on Zillow: StockTwits (TheStreet.com)
Investors followed the “smart money” into Zillow Inc (NASDAQ:Z) Tuesday. Tiger Global Management, a firm Forbes called “the world’s hottest hedge fund,” bought a 9.5% stake in the online real estate search company, according to an April 21 SEC filing that made its rounds on the Web Tuesday. The fund, run by Charles P. Coleman III, has been a top performer for several years. Zillow’s stock rose more than 11% today.
Recommended Reading:
Lone Pine Capital Reports Holding Almost 6% of Equinix Inc (EQIX)
Second Curve Capital Increases Stakes in Consumer Portfolio Services Inc (CPSS)
