Editor’s Note: Related tickers: Facebook Inc (NASDAQ:FB), Dell Inc. (NASDAQ:DELL), Deutsche Bank AG (USA) (NYSE:DB)
Billionaire hedge-fund manager Steven A. Cohen declined to testify before a grand jury about allegations of insider trading at his SAC Capital Advisors, according to three people familiar with the matter. Cohen, 57, made use of his Fifth Amendment right not to incriminate himself after being summoned, said the people, who asked not to be identified because the information is private. He was excused from appearing before the grand jury after informing prosecutors through his lawyers that he planned to use the right, said one of the people.
Facebook’s Hedge Fund Problem (TheStreet)
Facebook Inc (NASDAQ:FB) is in desperate need of a hedge fund spokesperson as the company’s shares remain mired well below a $100 billion valuation given to the social network in its May 2012 initial public offering. For the ordinary investor, or even a burned buyer of Facebook Inc (NASDAQ:FB)’s IPO, the seeming lack of interest by big money investors is troubling. Buying among hedge funds in upcoming quarterly Securities and Exchange Commission filings or in large individual holdings, however, could be a sign Wall Street’s most influential investors finally see value in the billion-member social network’s shares.
Icahn requests Dell meeting after securing $5.2 billion loan (ZDNet)
Dell Inc. (NASDAQ:DELL) investor Carl Icahn has asked for a meeting with Dell Inc. (NASDAQ:DELL)’s special board committee after lining up $5.2 billion in loans to show there is financial backing for his alternative buyout bid. In a letter to Dell Inc. (NASDAQ:DELL) shareholders, Icahn said that investment includes a commitment of $1.6 billion from Jefferies Finance, as reported by Reuters. In the letter, Icahn said he hopes that the newly-filed loan agreements will set aside “unwarranted speculation by Dell Inc. (NASDAQ:DELL) that our money would not be available.” …The investor’s proposal is meant to secure more value for shareholders, but has previously been branded “unrealistic” by Dell Inc. (NASDAQ:DELL)’s special committee. Dell Inc. (NASDAQ:DELL)’s board suggested that Icahn’s proposal would result in a shortfall, reduce dividends to $8.15 per share.
Deutsche Bank survey highlights investor emphasis on hedge fund operational due diligence (InvestmentEurope)
Deutsche Bank AG (USA) (NYSE:DB)‘s Hedge Fund Consulting Group’s second annual operational due diligence survey, which polled investors globally representing over $2.13trn of total assets, with a hedge fund allocation in excess of $724bn,shows almost three quarters rank a fund’s compliance and regulatory framework as the top priority for 2013. Operational due diligence has continued to grow in importance and an overwhelming 70% of ODD teams now have explicit veto authority in the investment decision making process, which was exercised in almost 10% of manager reviews. In a further sign of the influence ODD teams now hold, 63% of investors won’t reconsider investing in a fund previously vetoed by the ODD team.
Greenlight Funds Down In June; Gold Fund’s Losses Hit 20% (Finalternatives)
June proved a month to forget for Greenlight Capital. The firm’s gold hedge fund plummeted 11.8% last month and is now down 20% on the year, Reuters reports. The gold fund had $929 in assets under management at the end of March. Greenlight also suffered losses in its $8 billion flagship, albeit much more modest ones. The fund dropped 1.1% last month, but it up 7.4% on the year. And while it may be cold comfort for Greenlight and founder David Einhorn, things could be worse: Paulson & Co.’s Gold Fund was down 54% through May—before the June swoon in the metal’s price that so badly burned Greenlight.
