Editor’s Note: Related Tickers: UBS AG (USA) (NYSE:UBS), Herbalife Ltd. (NYSE:HLF), Agrium Inc. (USA) (NYSE:AGU)
SAC Said to Give Investors Until June 3 for Redemptions (Bloomberg)
Ex-UBS Credit Trader Nakum Joins Lucidus Capital Hedge Fund (Bloomberg)
Lucidus Capital Partners LLP, the credit hedge fund, hired Anatoly Nakum last month to be a money manager focused on corporate debt. The former co-head of debt trading for North America at UBS AG (USA) (NYSE:UBS) is running a long-short credit strategy with William Gaberlavage, Nakum said today in an e-mail. Nakum, who left UBS in 2011, joins David Gallers, who departed his post as head of credit-default swap index trading at UBS in October and now is a money manager focused on the indexes. Simon Meadows, head of business development at Lucidus in London, declined to comment on the moves.
Why Hedge Fund Big Shots Hate Ben Bernanke (Forbes)
Hedge fund zillionaire Paul Singer is super-mad at the Federal Reserve and Fed Chairman Ben Bernanke over inflation they have not yet quite unleashed. In his eyes, they’re guilty of “lower and lower discipline, less and less conservative stewardship of the precious confidence that is all that stands between fiat currency and monetary ruin.” Hedge fund zillionaire Seth Klarman has the same Bernanke bee in his bonnet. And it’s not just those two, of course. Fellow master of the universe David Einhorn is on record accusing Ben and the other gluttons at the Fed of an unnatural love for jelly donuts. Yet another investing legend, Stanley Druckenmiller, just called the Fed’s bond purchases the “most inappropriate” monetary policy ever.
Hedge fund Jana not done with Agrium (bnn.ca)
U.S. based hedge fund Jana Partners is not walking away from Agrium Inc. (USA) (NYSE:AGU) after it failed in its 10-month long proxy battle that culminated in April with none of its five nominees being elected to the fertilizer company’s board, a source familiar with the hedge fund tells BNN. Jana continues to monitor Agrium Inc. (USA) (NYSE:AGU) and is working on the governance issues that it says are evident after proxy campaign, the unidentified person said. Jana managing partner Barry Rosenstein claimed that Agrium Inc. (USA) (NYSE:AGU) played dirty, after the hedge fund believed it had enough votes at April’s annual general meeting to place two of its nominees on the board.
Passport’s Burbank a Believer in Gold, Shorting Bullion Miners (Businessweek)
John Burbank, founder of San Francisco-based hedge-fund firm Passport Capital LLC, said he’s a believer in gold and is short on bullion miners. “We made money this year in shorts,” Burbank said today during a panel discussion at the SkyBridge Alternatives Conference in Las Vegas. “Mining and steel companies are not doing well. A lot of things tied to gold growth are not doing well.”
Falcone’s Harbinger Loses Appeal Over Northern Rock Stake Value (Bloomberg)
Harbinger Capital Partners LLC lost a U.K. appeal seeking compensation for a stake in Northern Rock Asset Management Plc that was valued as worthless when the British lender was nationalized in 2008. Philip Falcone’s hedge fund had argued its shares were worth as much as 400 million pounds ($622 million). Judge John Mummery upheld the decision today of a lower court. Andrew Caldwell, an independent assessor from the accounting firm BDO International, had determined there was no value in the shares. “I think that the valuer got it right,” Mummery said in a written ruling.
Paulson hedge fund puts hotel unit in bankruptcy to escape lawsuit (Yahoo! News)
Billionaire investor John Paulson has put a real estate unit of his hedge fund into bankruptcy to thwart a lawsuit by a lender that claims it is owed tens of millions of dollars related to the recent sale of several luxury resorts. According to filings late Wednesday in Manhattan bankruptcy court, MSR Hotels & Resorts Inc. sought Chapter 11 protection from creditors to sell its remaining assets and wind down. A bankruptcy filing often halts litigation against a debtor. Daniel Kamensky, MSR’s treasurer and a partner at a Paulson & Co. affiliate, said in an affidavit that protection was necessary because of the “baseless” lawsuit filed last month by Five Mile Capital Partners against MSR’s directors, which he said reflects the lender’s “scorched-earth” tactics.
Investor Dan Loeb’s pragmatic, opportunistic approach pays off (Reuters)
Peak6 raises $1 billion for new hedge fund (Crain’s Chicago Business)
Peak6 Investments LP’s asset management unit has raised $1 billion for a new hedge fund, one of only two managed by the Chicago firm. It’s also the first hedge fund created at Peak6 under former O’Connor & Associates veteran Joe Scoby, who joined the firm last year to lead the company’s asset management business, Peak6 Advisors. The new Peak6 Achievement fund is one of about 1,100 hedge funds created worldwide last year and one of nearly 10,000 existing hedge funds, according to Hedge Fund Research Inc.
‘China’s George Soros’ joins Hong Kong firm (South China Morning Post)
Dai Jixin, a former manager of Soros Fund Management, plans to start a new hedge fund in Hong Kong backed by a trader dubbed “China’s George Soros”, according to company filings. Dai’s Xin Tian Fund Management was incorporated in late January, according to filings with Hong Kong’s Companies Registry. Dai is joined by two other directors, Ye Qingjun, chairman of Chinese asset manager DH & YZ Capital, and Zhang Yongjun, DH & YZ’s chief investment officer, the filings show.
Karpati leaving as SEC asset management enforcement chief (Pensions & Investments)
Bruce Karpati is stepping down as chief of the SEC enforcement division’s asset management unit, the agency announced Thursday. Julie Riewe, deputy chief in the unit’s Washington office and Marshall Sprung, deputy chief in the Los Angeles regional office, will serve as interim chiefs until a successor is named. Mr. Karpati, who leaves the Securities and Exchange Commission on Friday, joined the agency as an enforcement attorney in 2000 and helped create the asset management unit in 2010. In 2012, he and his staff received the SEC Chairman’s Award for Excellence for developing the Aberrational Performance Inquiry, which monitors performance data of hedge fund managers to detect investment fraud.
Vinik vows to remain active in Tampa despite fund closure (Tbo.com)
The Tampa region can expect to see a lot more of Lightning owner Jeff Vinik in the coming years. Vinik may be shutting down his namesake hedge fund, but rather than go into seclusion, he plans a host of new projects around town, from developing the neighborhood around the Forum where his hockey team plays, to a new focus on philanthropy, and helping his former employees start new companies and land on their feet. Vinik laid out the broad strokes of his vision to The Tampa Tribune on Thursday, particularly with his neighborhood in downtown.
Lodestone Hedge Fund Said to Liquidate After Founders’ Arrests (San Francisco Chronicle)
Lodestone Investment Partners LLP is liquidating its hedge fund following the February arrests of two of the firm’s founders as part of an investigation into alleged insider trading, two people with knowledge of the matter said. The $100 million Lodestone Natural Resources fund, which invests in commodity stocks, is shutting down after U.K. regulators detained Chief Investment Officer Tim Whyte and founding partner Carl Linderum for questioning on Feb. 27, said the people, who asked not to be identified because the London- based firm is private. Neither has been charged with any crime.
