Editor’s Note: MBIA Inc. (NYSE:MBI), Deere & Company (NYSE:DE), J.C. Penney Company, Inc. (NYSE:JCP), Google Inc (NASDAQ:GOOG)
The Securities and Exchange Commission is delaying its civil action against billionaire hedge-fund manager Steven A. Cohen while federal prosecutors proceed with their criminal case against his firm, SAC Capital Advisors. The chief administrative law judge at the SEC, Brenda Murray, had been scheduled to hear the agency’s case against Cohen later this month. But she ruled Thursday to grant the Justice Department’s request for a delay.
Deere, GPS makers sued by hedge fund (Chicago Tribune)
Hedge fund Harbinger Capital, led by billionaire Phil Falcone, has sued Deere & Company (NYSE:DE) and GPS makers for $1.9 billion in damages in an effort recoup its investment in bankrupt wireless company LightSquared, court papers show. LightSquared filed for bankruptcy last year after Moline-based Deere, Garmin International, Trimble Navigation Ltd and GPS industry groups all opposed its plan to build a wireless network due to concerns that LightSquared spectrum would interfere with GPS systems, which are used in everything from farm machinery to airline navigation.
Playboy fraudster faces extradition to US over £12m hedge fund scam (Evening Standard)
A playboy fraudster is facing extradition to the United States to face charges over a multi-million pound hedge fund scam. Marc Duchesne, 52, pocketed £12million from at least 50 unwitting victims after promising them high returns on their money. Duchesne spent the money on a fleet of cars including a Ferrari Enzo, a Rolls Royce Phantom, a Bentley Arnage and several Hummers. He bought a speedboat for a friend, spent £60,000 on cosmetic dentistry and his cigar bill alone was more than £22,000. Described as a “Walter Mitty” character, Duchesne was later ordered to pay back £1.9m by a judge in his absence or face another five years jail in default of payment.
Hedge Fund Andor Capital Management’s Top Stock Picks (Seeking Alpha)
Daniel Benton’s technology and services focused hedge fund Andor Capital Management has filed its 13F for the second quarter of 2013, disclosing many of its long equity positions as of the end of March. Benton increased his stake in Google Inc (NASDAQ:GOOG), which had already been his top pick at the beginning of April, over the course of the quarter. As the tech company’s stock price bounces around $900 per share, it is valued at 17 times forward earnings estimates. Last quarter its net income grew by 16% compared to the second quarter of 2012, and if Google Inc (NASDAQ:GOOG) can hit analyst targets for next year and continue to grow earnings at double digit rates it could easily justify that valuation.
Hedge Fund GSO Scores Win With MBIA Bet (Wall Street Journal)
When MBIA Inc. (NYSE:MBI) and Bank of America Corp agreed in May to settle a four-year-old lawsuit, traders at GSO Capital Partners erupted in cheers. The agreement gave the New York hedge fund owned by Blackstone Group LP a $100 million profit plying one of Wall Street’s most-contentious trades since the financial crisis: whether MBIA, an Armonk, N.Y., bond-insurance company, would emerge intact from a cash crunch dating back to the U.S. housing bust and a related legal battle involving 18 banks and New York’s insurance regulator. Behind GSO’s gains was 41-year-old fund manager Darren Richman’s wager worth about $500 million that MBIA Inc. (NYSE:MBI) would wrangle settlements from the banks over real-estate losses, avoiding a seizure by regulators.
Video: Why hedge fund managers like the reinsurance business (Artemis.bm)
Multi-Strat Re is an interesting strategy which could help both smaller hedge funds, or hedge funds who do not want to devote the time to establishing their own reinsurance vehicle and building experienced teams, to get into the reinsurance business and begin to profit from the investment capital it provides via the reinsurance float. Recently, Opalesque TV interviewed Joe Taussig, the CEO of Multi-Strat Holdings Ltd., which owns Bermuda domiciled reinsurer Multi-Strat Re. Taussig explains in the video why hedge fund managers like to get into the reinsurance business, how the strategy works and how Multi-Strat aims to make the venture simpler for fund managers.
HFR: Net inflows to Asian hedge funds exceed flows to both U.S. and European-focused hedge funds in Q2 (Opalesque)
Building on strong recent performance gains, global investors increased allocations to Asian hedge funds in the second quarter with net inflows to Asian hedge funds exceeding the flows to both U.S. and European-focused hedge funds, according to the latest HFR Asian Hedge Fund Industry Report, released today by HFR, the established global leader in indexation, analysis and research for the global hedge fund industry. Investors allocated over $3 billion of new capital to Asian hedge funds, with new inflows concentrated in Equity Hedge strategies and Japan-focused funds. As of 2Q, total capital invested in the Asian hedge fund industry increased to over $98.4 billion (¥9.6 Trillion Japanese Yen, 602 Billion RMB), the highest level since 2007.
Billionaire Bill Ackman Takes On The World (Forbes)
William Ackman, the billionaire hedge fund manager, is having an eventful summer battling iconic Wall Street titans and corporate leaders as he tries to turn around his most problematic investments. In recent days, Ackman has launched a fierce showdown with the board of directors of J.C. Penney Company, Inc. (NYSE:JCP), the struggling retailer in which Ackman’s Pershing Square hedge fund is the biggest shareholder. He reportedly threatened the board, on which he himself sits, that he would sell Pershing Square’s 18% stake in the company if it did not quickly replace CEO Myron “Mike” Ullman. Ackman made his campaign against Ullman public as a letter he sent to the board demanding that Ullman be replaced soon found its way to CNBC.
Hedge Funds Flock To Curacao (Curacao Chronicle)
Citco is once again the most popular administrator for hedge funds, topping the annual Absolute Return ranking for the fifth consecutive year. The international firm, which has led the survey every year since its inception, further increased its market share to 23.03%, approximately 1.2 percentage points more than last year. Citco has kept its lead by investing aggressively in new products such as Treasury and collateral functions, and news standalone risk management software in the Americas and Europe, said global head of sales Jay Peller. Even among startups, the breadth of what funds are demanding from their administrators is increasing, he said.
Kinetic Partners helps Piquant Technologies become first UK hedge fund authorised according to AIFMD (HedgeWeek)
The directive, which came into force on the 22 July 2013, will change the way EU fund managers manage their alternative investments. Andrew Shrimpton, global head of regulatory compliance at Kinetic Partners, says: “It’s extremely rewarding for us to know that we have helped Piquant Technologies become the first hedge fund to be authorised by the FCA according to the EU AIFMD. To this end, we worked closely with a number of different parties to put in place the right structure and documentation needed to make sure that all of the regulatory and tax requirements were met. We were able to execute this quickly, with the transition from the original application to the new authorisation according to the AIFMD taking just three weeks.”
