Wall Street Plays 2016 Dating Game as Christie Stumbles (BusinessWeek)
Billionaire Wilbur Ross invited Paul Ryan over for lunch. Goldman Sachs Group, Inc. (NYSE:GS) and Wells Fargo & Co (NYSE:WFC) bankers met with Rand Paul at a fundraiser in Atlanta. Investor Rob Arnott dropped in on Ted Cruz. Wall Street Republicans have begun their White House dance less than halfway into a second Barack Obama term they tried to prevent with record donations to Mitt Romney. As investigations slow Chris Christie, whose backers have included a troop of billionaires, donors are looking for a candidate who can replace the constraints they detest with appreciation they think is due.
Battered SAC Capital morphs into Point72 (HereIsTheCity)
Run by billionaire investor Steven A. Cohen and christened with his initials, SAC made the announcement in a letter to employees, which will become effective next month. Last November, SAC paid $1.2 billion in a settlement with regulators over securities fraud charges. “In the aftermath of our settlement with the government, Steve and senior management considered whether our path forward as a family office would be simpler if we operated with new legal entities and new names,” the firm said. “We concluded it would.”
Wall Street still hearts Obama (CNBC)
President Barack Obama’s approval rating may have hit a new low, but he still attracted big-money Democrats at a Manhattan fundraiser to benefit his political party. The Blackstone Group L.P. (NYSE:BX) President and Chief Operating Officer Hamilton “Tony” James hosted Obama on Tuesday night at his Fifth Avenue home for the Democratic Senatorial Campaign Committee. The event cost $32,400 to attend, and wealthy investors were featured prominently. …Representatives for the attendees did not respond to requests for comment or declined.
Ex-Goldman VP Tourre Ordered to Pay More than $825K in SEC Case (FoxBusiness)
A federal judge ordered former Goldman Sachs (GS) bond salesman Fabrice Tourre to forfeit a $175,000 bonus and pay a $650,000 fine for misleading investors in the run up to the 2008 financial crisis. A jury in August found Tourre guilty of defrauding investors in one of the few cases in which a Wall Street executive faced a trial in connection with actions regulators said contributed to the economic meltdown. Tourre was charged by the Securities and Exchange Commission with lying to investors while marketing a complicated investment product called a collateralized debt obligation filled with shaky mortgage loans that Tourre knew would likely plunge in value.
Bill Ackman Isn’t Giving Up On Herbalife (Benzinga)
When so many others would have cut their losses and ran, Bill Ackman is not only continuing to hold his short position in Herbalife Ltd. (NYSE:HLF), he continues to dig for new headlines to keep the story fresh in the minds of investors, regulators and the media. Tuesday, Ackman held a conference call where nearly 300 listeners heard him say that Herbalife is violating Chinese anti-pyramid scheme laws. His hedge fund, Pershing Square Capital, hired research firm OTG to collect evidence through interviews with Herbalife distributors in China.
Hedge fund directors lack credibility, says survey (Risk)
Of those polled, 73% of investors say they do not think directors are “useful”. However, the survey points out that there is a lack of understanding of the role of directors. “Competent fund directors can actually add value to the overall governance of a hedge fund,” says Jason Scharfman, managing partner of Corgentum Consulting, which carried out the survey. “Many investors simply view these directors as an extension of the fund itself,” he adds. Over half (62%) of the group surveyed feel directors do not have much credibility with fund managers and do not provide independent oversight, according to Scharfman.
‘Exuberance’ seen in the private equity market: Pro (CNBC)
Google Inc. retain status as top fund holding (FinancialPost)
Google Inc (NASDAQ:GOOG) remained the most-owned stock among the largest 50 mutual funds in the United States during the fourth quarter of 2013, while Apple Inc. (NASDAQ:AAPL) held on as the most widely-held hedge fund holding south of the border, says a Citigroup Global Markets report. Google was a top-10 holding in 26 mutual funds through the three-month period ended Dec. 31, 2013, good enough to retain its top-stock standing for the fifth straight quarter. Microsoft Corporation (NASDAQ:MSFT) and Wells Fargo & Co. were second-highest with top-10 positions in 19 mutual funds, followed by Amazon.com, Inc. (NASDAQ:AMZN) with 15.
Soros Says Europe Faces 25-Year Slump Without Overhaul (MSN)
Billionaire investor George Soros said Europe faces 25 years of Japanese-style stagnation unless politicians pursue further integration of the currency bloc and change policies that have discouraged banks from lending. While the immediate financial crisis that has plagued Europe since 2010 “is over,” it still faces a political crisis that has divided the region between creditor and debtor nations, Soros, 83, said in a Bloomberg Television interview in London today. At the same time, banks have been encouraged to pass stress tests, rather than boost the economy by providing capital to businesses, he said.
Ex-Two Sigma Analyst Indicted For Alleged Code Theft (Finalternatives)
A former Two Sigma Investments analyst has been indicted for stealing the hedge fund’s proprietary models. Kang Gao, a Chinese national, faces 11 counts of computer trespass, unlawful duplication of computer-related material, criminal possession of computer-related material and unauthorized use of secret scientific material. He pleaded not guilty. According to the Manhattan District Attorney’s Office, Gao used a decompiler to access models he was not permitted to view and then sent those and other Two Sigma data to a personal e-mail account. According to Two Sigma, which has also sued Gao, he planned to use the information, either at a new job or to start his own business in China.
‘Dr Doom’ needs to back up his views with hard evidence (IrishExaminer)
In 2008 economist Nouriel Roubini earned widespread ridicule for claiming that the embryonic problems in the US subprime sector would mutate into an existential financial crisis that would cost the banking system over $1 trillion (€721bn). Soon dubbed Dr Doom, Mr Roubini’s predictions were all too prescient. The global economy spiralled into a vicious downward loop that took unprecedented government and central bank action to stabilise. In the process, Mr Roubini became an unlikely household name who bloated his bank account through syndicated articles and speaking engagements advising how bad things were going to get.
Cooperman Backs Icahn On eBay (Finalternatives)
Critics of Carl Icahn’s campaign against eBay Inc (NASDAQ:EBAY) have been legion. Supporters have been few. But another prominent hedge fund manager has joined the latter contingent. Omega Advisors founder Leon Cooperman said he agreed with Icahn that eBay should spin-off its PayPal unit. “I give Carl a lot of credit for taking the time and showing the energy, and in this case, we happen to agree with him,” Cooperman told CNBC. “I think they should spin out a portion of PayPal.” Omega, like Icahn, is an eBay investor.
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