John Thomas Investor Demands Access To Hedge Fund Files (Law360)
A hedge fund investor fired off a books-and-records complaint at John Thomas Capital Management Group LLC Tuesday, demanding access to internal documents in the wake of fraud charges brought against the firm’s manager by the U.S. Securities and Exchange Commission. In March, the SEC launched administrative proceedings accusing George R. Jarkesy Jr., head of the Houston-based firm, of defrauding investors in two hedge funds by inflating valuations and the books-and-records suit was filed in Delaware Chancery Court by Paul Rodney, a limited partner in one of…
Hedge-Like Funds More Correlated with Stocks (WSJ)
As funds using hedging strategies soar in popularity, there may actually be less reason to like them. Many investors are attracted to such mutual funds and exchange-traded funds due to a lack of close correlations with stocks. In the past, that divergence has provided investors with an added degree of portfolio diversification to weather market turbulence. But a new study by boutique investment manager the Leuthold Group of Minneapolis suggests alternative funds may now be moving more in tandem with stocks than they used to. So-called hedge-like funds, which can hold a variety of different types of securities, have seen their ranks swell.
Hedge fund hires former RBS managing director (eFinancialNews)
Financial News has learnt that Christopher Lynch has been recruited by the $250m manager as head of structured solutions. Lynch will be responsible for the origination and execution of structured products for EQI’s clients. Steve Smith, head of trading at EQI, confirmed the hire. He said: “It’s part of an expansion that EQI continue[s] to make.” EQI, founded in 2009, implements equity strategies through listed and over-the-counter derivatives. Its chief executive, Salim Mohamed, has held roles at Merrill Lynch and Goldman Sachs Group, Inc. (NYSE:GS). Most recently, Lynch was at Evoia Capital, a boutique financial services firm that works in asset management, agency brokerage and structured solutions.
Icahn takes Dell battle to court (ITWeb)
Billionaire investor Carl Icahn plans to seek a higher price for his Dell Inc. (NASDAQ:DELL) shares in court and urged other investors to do the same, in an effort to block Dell Inc. (NASDAQ:DELL) founder Michael Dell’s $24.4 billion buyout offer ahead of a key shareholder meeting. Icahn opposes the proposal from Michael Dell and private equity firm Silver Lake, arguing it undervalues the PC maker, and has put forth a number of alternative options in concert with fellow Dell Inc. (NASDAQ:DELL) shareholder Southeastern Asset Management.
Hedge Funds Stumbled in June After Months of Gains (WSJ)
It was good while it lasted, we’re sure, but nothing lasts forever. After seven months in the black, hedge funds around the world hit the skids in June, according to data provider Eurekahedge. Six of Eurekahedge’s seven regional hedge fund indexes finished in the red last month–meaning that hedge funds invested exclusively in those regions lost money. At least on paper. The exception was the Eurekahedge Japan Hedge Fund Index, which despite the Nikkei Stock Average’s wild ride last month eked out a gain of 0.15%. It’s up 17.38% on the year.
Starboard Zeroes In on New Target: Emulex (InstitutionalInvestorsAlpha)
Jeffrey Smith’s Starboard Value, the New York hedge fund firm that has picked battles with corporate targets including Office Depot Inc (NYSE:ODP) and Tessera Technologies, Inc. (NASDAQ:TSRA), has identified its newest activist target. The firm’s hedge fund, which manages between $1.3 billion and $1.4 billion, disclosed late Monday that it owns 6.9 percent of Emulex, a provider of products that connect servers, storage and networks within data centers. The filing comes less than a week after Bloomberg reported that Emulex hired Goldman Sachs Group, Inc. (NYSE:GS) to find potential buyers, citing two people with knowledge of the situation.
