Hedge Fund Manager Allegedly Victimized By Strippers (Finalternatives)
An unidentified hedge fund manager is among at least four men allegedly drugged and ripped off by a group of New York strippers. Four strippers and a strip-club manager have been arrested for the alleged scheme, which prosecutors say cost victims almost $200,000. According to the indictment, the quartet would “fish” for victims at ritzy bars in New York City and on Long Island, texting the “worthy targets” to meet up later. Then, they would allegedly drug the men and take them to one of two strip clubs, Scores in Manhattan and Roadhouse NYC in Queens.
Hedge Funds Get Stung by Slow Markets (WSJ)
Some of the biggest investors on Wall Street are losing money with wrong-way bets in markets around the globe, a surprising black eye amid a rise in stock and bond prices. Hedge-fund managers including Paul Tudor Jones, Louis Bacon and Alan Howard are among those who have misread broad economic and financial trends. Some have lost money as Japanese stocks fell, while others have been upended by the surprising resilience of U.S. bonds. An unusual period of calm has exacerbated problems for many trading strategies dependent on volatile markets. The losses by these so-called macro investors are contributing to a trading slowdown hurting the largest investment banks.
Allergan Sued Over Poison Pill Trigger (NYTimes)
Pershing Square Capital Management, the hedge fund run by activist investor William A. Ackman, has sued Allergan, the target of a hostile bid from Pershing Square and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Pershing Square is seeking to call a special meeting of Allergan shareholders later this year, at which it hopes to vote in new board members who would support the deal, which is valued at $53 billion. But Pershing Square contends that Allergan has not made it clear whether or not calling the meeting would set off its shareholder rights plan, or poison pill, which would substantially dilute shareholders, including Pershing Square with its nearly 10 percent stake. By not making that clear, Allergan is effectively postponing any potential meeting.
Everest’s Emerging-Markets Bets Pay Off (InstitutionalInvestorsAlpha)
Marko Dimitrijevic’s Everest Capital is deftly maneuvering through the volatile emerging markets so far this year. According to its May report sent to clients and obtained by Alpha, four of the Miami-based firm’s five global- and emerging-markets-focused hedge funds gained between 4 percent and 5 percent last month alone. As a result, three of the hedge funds and the firm’s two long-only funds are handily beating the various global market benchmarks for the first five months of the year.
‘Shorting Strangles’ Pays Off for One Macro Manager (WSJ)
In an environment that has seen many famous so-called macro managers bleed out slowly, one less well-known name has bucked the trend. Rajiv Sobti, founder of $850 million New York-based hedge-fund firm Karya Capital Management LP, went against the grain—and many of his peers—earlier this year in betting on an extended period of low volatility. Mr. Sobti said in an interview with MoneyBeat that he came to the conclusion after realizing that for all the bluster on rising long-term, central banks were unlikely to take concrete steps to move them as long as they saw the economy as remaining weak.
Recommended Reading:
Oaktree Capital’s Howard Marks’ Insight on Markets
