Editor’s Note: Related tickers: The Blackstone Group L.P. (NYSE:BX), JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Dell Inc. (NASDAQ:DELL)
In the insider-trading investigation of hedge-fund billionaire Steven A. Cohen, the U.S. government playbook looks to be missing two important elements: incriminating wiretaps and well-positioned cooperators. The Wall Street Journal reported last week that federal prosecutors in Manhattan are unlikely to bring criminal insider-trading charges against Mr. Cohen, founder of SAC Capital Advisors LP, before a statute-of-limitations deadline expires late this month. The deadline is connected to what prosecutors have called the most lucrative insider-trading scheme ever made public.
Blackstone Raises $5 Billion Rental Bet With Lending Arm (Bloomberg)
The Blackstone Group L.P. (NYSE:BX), the private-equity firm that has spent $5 billion on more than 30,000 distressed houses, is preparing to expand its bet on the housing recovery by lending to other landlords. …Tennyson didn’t return phone messages seeking comment on his role at B2R. Peter Rose, a spokesman for The Blackstone Group L.P. (NYSE:BX), declined to comment. With the creation of a lending unit, The Blackstone Group L.P. (NYSE:BX) would be adding to a big wager on the residential real estate recovery it began making after the crash, when prices fell as much as 35 percent from the 2006 peak.
Trustee Wins $546 Million From JP Morgan For Hedge Fund Investors (HedgeCo)
The case from back in June (2013) of US regulators via. Jon Corzine (MF Global Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-2790, and Deangelis v. Corzine, U.S. District Court, Southern District of New York, No. 11-7866,) over the collapse global financial derivatives broker and hedge fund trader MF Global, formerly known as Man Financial, won court approval on Wednesday for a $546 million settlement with JPMorgan Chase & Co. (NYSE:JPM), according to Reuters. ( the run-on sentence is due to the Friday-after-4th-factor.) Reuters reports: “Under the settlement, JPMorgan Chase & Co. (NYSE:JPM) will pay $100 million to benefit former customers. It has also agreed to return more than $29 million in brokerage funds and to release claims on $417 million.”
James Altucher hosts Stansberry Radio with Guests Dan Marino and Michael Pento (PRWeb)
The always-lively James Altucher entertained listeners of Stansberry Radio last week in an episode that boasted guest appearances by bond expert Michael Pento and famed NFL Quarterback, Dan Marino. Altucher went into detail about his decision not to run for political office saying his advisory team told him, “my platform was completely crazy.” Altucher and show Co-host Aaron Brabham discussed the new book, “Choose Yourself!” released in June of this year. “We have to choose ourselves now for success” stated Altucher.
Hedge Fund Perry Capital Sues US Treasury, FHFA Over Fannie Mae and Freddie Mac Takeovers, Sweep Amendment (IBTimes)
In the latest sign of unrest among private shareholders of Fannie Mae (OTCBB:FNMA) and Freddie Mac (OTCBB:FMCC), hedge fund Perry Capital LLC filed a lawsuit against the U.S. Treasury in a federal court in the District of Columbia, on Sunday, alleging that the 2012 amendments made to the bailout terms set for the two firms were illegal. New York-based Perry Capital challenged the government’s takeover of the mortgage giants during the financial crisis and the subsequent “sweep amendment” in 2012, which altered the original terms of the acquisition. The fund claimed, according to the lawsuit, that the alteration violates private investors’ rights as it prevents the two firms from building their own capital.
Melanion Capital launches first hedge fund focused on dividend futures (Opalesque)
Melanion Capital, Paris has received authorization from the French Autorité des Marchés Financiers to become the first alternative manager to specialize in investment in dividend futures. Led by Jad Comair, founder and CIO, the Melanion team traces its track record and expertise in dividend futures (at a leading French investment bank) from 2008, the year of the first listing of a dividend future on Eurex. Since 2008, the dividend futures market has expanded in volume, in the number of traded instruments (single stocks, indices, options, etc), the number of exchanges issuing these contracts (Eurex, NYSE Euronext, MEFF, LSE, Tokyo, Singapore etc.) and the number of market participants (institutions, banks, family offices and others).
Hold on for China roller coaster ride: Quam AM (AsianInvestor)
Managers for the Quam China Focus Fund expect more mainland market volatility to come, even as a relative calm has prevailed following a turbulent -15.6% drop in the CSI300 last month. “There is high degree of uncertainty surrounding the China economy, as there is a consensus that there will be no economic stimulus from the government,” says Jim Fong, portfolio manager for the Greater China-focused long/short equity strategy, run out of Hong Kong by Quam Asset Management. Last month’s rocky trading conditions were triggered by an expected tightening of liquidity in China, with stocks of small banks bearing the brunt of losses. It has effectively diffused optimism that fuelled a bull market in February.
