Ackman Puts Stamp On Canadian Pacific With New CEO (Bloomberg)
William Ackman had to wait only six weeks after winning a proxy fight at Canadian Pacific Railway Ltd. (CP) for his choice as chief executive officer to get the job. Achieving his profitability targets for the least efficient of North America’s major railroads may take several years. Ackman and the board elected in May are betting that the CEO named today, 67-year-old Hunter Harrison, can pull off a turnaround similar to the one he oversaw at Canadian National Railway Co. (CNR) Harrison has said he can cut Canadian Pacific’s operating expenses to 65 percent in 2015 compared with 80.1 percent of sales in the three months through March.
Nomura Cuts Executive Pay Amid Unit Suspensions On Leaks (Bloomberg)
Nomura Holdings Inc. (8604), Japan’s biggest brokerage, said it will cut top executives’ pay and suspend some operations following an internal probe into leaked information amid a government crackdown on insider trading. Chief Executive Officer Kenichi Watanabe’s pay will be lowered by 50 percent for six months, while Chief Operating Officer Takumi Shibata’s compensation will be reduced for five months, the Tokyo-based company said in a statement yesterday. The institutional equity sales department will halt business for five days from July 2, it said.
JPMorgan Cushions Drew’s Retirement With $21.5 Million (Bloomberg)
JPMorgan Chase & Co. (JPM)’s decision to let Chief Investment Officer Ina Drew retire four days after the bank disclosed a $2 billion loss in her division allowed her to walk away with about $21.5 million in stock and options. Drew, who resigned May 14, can keep $17.1 million in unvested restricted shares and about $4.4 million in options that she otherwise would have been required to forfeit if the New York-based bank had terminated her employment “with cause,” according to regulatory filings and estimates from consulting firm Meridian Compensation Partners LLC.
Batista’s Billions Wilt On Missed OGX Goal In Brazil (Bloomberg)
Eike Batista, who energized Brazilian markets by taking six startups public since 2006, is no longer among the world’s 20 richest people after shares of his commodity empire plunged, wiping $3.8 billion from his fortune. OGX Petroleo & Gas Participacoes SA, Batista’s biggest company, lost 40 percent of its value in the past two days after cutting production targets at its first two oil wells by as much as 75 percent. The drop dragged down Batista’s mining, logistics and shipbuilding companies on concern the enterprises, some of which rely on OGX for revenue, will scale back targets as well.
Fund Managers Face Longer Wait For Bonuses Under EU Rules (Bloomberg)
Senior hedge-fund and private-equity managers face longer waits for bonuses under proposals from the European Union’s top markets regulator. Bonuses for risk-taking employees should be withheld for a certain length of time to align managers’ interests with the long-term performance of the fund, the European Securities and Markets Authority said today. Staff with the “most material impact on the risk profile” of the fund should be subject to longer retention periods, ESMA said without specifying how long.
Fairfax Had ‘Massive’ Loss In Morgan Keegan Case: Judge (Bloomberg)
Canadian insurer Fairfax Financial Holdings Ltd. (FFH) suffered “massive” economic loss because of a campaign of negative information that led it to sue broker-dealer Morgan Keegan & Co. and Exis Capital Management Inc., a judge ruled. A state judge in Morristown, New Jersey, narrowed the lawsuit yesterday, dismissing a claim against Morgan Keegan, Exis and two others, while allowing three claims to go to trial on Sept. 10. Fairfax seeks $8 billion in damages through its lawsuit, filed in 2006.
Kerviel Apologizes To SocGen Employers At Close Of Appeal (Bloomberg)
Jerome Kerviel apologized to Societe Generale SA (GLE) employees and said he “never lied” during the investigation into the bank’s 4.9 billion-euro ($6.1 billion) trading loss, as his lawyers asked a Paris court to clear him of any wrongdoing on the final day of his hearing. Kerviel, 35, is fighting a 2010 guilty verdict, for which he was sentenced to three years in prison and ordered to repay the bank for its losses. Prosecutors this week asked for the maximum five years, a tougher recommendation than the lower court prosecution requested.
Hedge fund eyes 35 percent return from Greek bonds buy (Reuters)
London-based hedge fund firm Adelante Asset Management has bought a position in the cut-price bonds of debt-laden Greece, betting that efforts by European politicians to restructure its debt mountain will provide a short-term boost to bond prices. The firm, which specialises in emerging markets debt, bought a basket of bonds at 12.5 cents shortly before Greek elections this month, won by a conservative-led government promising to negotiate softer terms on its tough international bailout.
U.S. hedge fund puts Telus on hot seat (Vancouversun)
U.S. hedge fund Mason Capital Management has asked Telus Corp. to address uncertainty that has been raised about the company’s compliance with foreign ownership rules. Mason Capital said Thursday a complaint by small Canadian rival Globalive that Telus has exceeded the 33.3-per-cent limit of foreign owners has heightened concerns.
Hedge Fund People: Black Diamond Capital Management Hires Jean Fleischhacker (HedgeCo)
$11 billion hedge fund firm, Black Diamond Capital Management LLC, announced the appointment of Jean Fleischhacker as Senior Managing Director, Business Development. Ms. Fleischhacker will lead the structuring and marketing for CLOs, other structured products, and mezzanine debt. She will also head new product development and play an instrumental role in strategic development and growth initiatives. Ms. Fleischhacker will be based in Black Diamond’s Greenwich, Connecticut office, working alongside Michael Moreno, Head of Marketing and Investor Relations and a Principal of Black Diamond.
EU watchdog plans curbs on hedge fund pay (Reuters)
European regulators published draft rules on Thursday to crack down on excessive bonuses for managers of hedge funds, a sector politicians have blamed for worsening euro zone debt problems. Policymakers have already clamped down on bankers’ bonuses, a move that has proved popular in the wider world where most people’s incomes are becoming ever-more squeezed.
Hedge Fund Manager Skill Is Misperceived (ai-CIO)
Investors must better distinguish between skill of hedge fund managers and their propensity to take on extra risk, according to Bryan Kelly, a professor of the University of Chicago. “We want to distinguish between genuine expertise of a hedge fund manager rather than outperforming by taking on extra risk — anyone can take on extra crash risk and get a higher return,” Kelly told aiCIO following the recent release of his academic paper on the topic, which he co-wrote with Erasmus University Professor Hao Jiang.
Paulson Talks Returns, Regret and Retirement in New Profile (NYTimes)
Appearing on the forthcoming cover of Bloomberg Businessweek is a close-up of the hedge fund titan John A. Paulson. Plastered over his face is a sticky note with the words “The Big Loser.” It is unlikely that the hedge fund manager, who cooperated for the profile, is happy with that depiction. But after a bloody year in which one of his biggest funds lost more than 52 percent, and with 2012 shaping up to be another period of poor performance, those words are on the lips of more than a few investors.
Capital Financial Global Pursuing 40% Interest In Hedge Fund (SacBee)
Capital Financial Global, Inc. (OTC: CFGX), announced today that it is in talks with a hedge fund to acquire a 40% interest in its management entity. “We are hopeful this will allow us to increase our funding capacity and simultaneously add some consistent fee revenue to our business model,” said Mr. Paul Norat, CEO of Capital Financial Global, Inc. “Even though we have reached an agreement in concept, I have to wait for due diligence to complete before I can announce names and final terms. I’m very excited about this and will announce more as soon as I can.”
Women ‘never the right age’ in hedge fund (Phys)
The report from the universities of Leicester and Essex looked into the concept of “adulting” which is defined as the attempt by people to be seen as mature and responsible, professionally and socially. The academics, who looked at men and women at a London hedge fund, found that women faced problems at every stage of adult life – from getting started in the company to keeping credibility among colleagues after giving birth.
SEC to issue hedge fund ad rules this summer (MyFoxphilly)
Securities and Exchange Commission Chairman Mary Schapiro said Thursday she expects the SEC to issue rules this summer to allow hedge funds and other private funds to advertise broadly. Schapiro, in prepared testimony before a panel of the US House oversight committee, said that the SEC would not meet a July 4 deadline set by Congress to complete the rules lifting the longstanding ban on publicizing private securities offerings.
Ernst & Young and The Hedge Fund Journal announce Tomorrow’s Titans 2012 (MarketWatch)
Ernst & Young LLP and The Hedge Fund Journal today announced the release of Tomorrow’s Titans 2012, a survey identifying 40 emerging hedge fund managers who are making an increasing contribution to the industry’s development and success. This is the second such survey published by The Hedge Fund Journal and sponsored by Ernst & Young. Following the first survey in 2010, Tomorrow’s Titans: Blue Chip Managers for the Next Decade, this year’s report highlights a new list of the top emerging hedge fund industry leaders based on their performance, asset size and the extent of their portfolio management responsibilities.
US Tech Buys UK Hedge Fund Company For $890 Million (HedgeCo)
SS&C Technologies Holdings, Inc., today announced the acquisition of hedge fund risk-reporting giant GlobeOp Financial Services S.A. (GlobeOp), for £4.85 ($7.54) per share, approximately £572 million ($890 million). The acquisition is, by value, the largest in SS&C’s history and significant for the fund services industry. The combined companies, including the PORTIA business acquired by SS&C from Thomson Reuters in May 2012, had revenues of $635 million in fiscal year 2011 and 3,600 employees operating in 43 offices including New York, Boston, Chicago, London, Amsterdam, Hong Kong, Kuala Lumpur, Singapore, Sydney, Bangalore and Mumbai.
Elderly Paraplegic With Dementia And Multiple Sclerosis Victimized In FOREX Hedge Fund Fraud (Forbes)
Damn, here we go again. On June 27, 2012, a federal grand jury in Newark, NJ indicted George Sepero, 39, Glen Rock, NJ on one count of wire fraud conspiracy and 16 counts of wire fraud involving for a purported hedge fund scam of investors. Wow . . . that’s a crime we just never hear about anymore . . . yeah, right. Now that you and I are done rolling our eyes at the familiarity – and the banality – of this most recent securities fraud, howsabout we take a gander at the alleged flim flamer and his flim flaming?
Allison Walker joins Korn/Ferry International as head of hedge fund practice (HedgeWeek)
Korn/Ferry International has appointed Allison Walker as a Senior Client Partner and Head of the firm’s Hedge Fund Practice. Walker joins Korn/Ferry after four years at Arden Asset Management, LLC in New York, where she served as Managing Director and Chief Administrative Officer. As a Partner in the firm, she worked side-by-side Research, Risk, Operations, Legal & Compliance, Finance and Technology with a primary focus on people, process, strategy, communications, as well as client service and development.
Magnum announces hedge funds liquidations: Jericho, MG Secured Debt, TM IndiaStar (Opalesque)
According to Magnum U.S. Investments, Inc, a fund of hedge funds manager and hedge fund sponsor, Jericho Tax Lien Offshore Investments Ltd and Jericho 2010 Tax Lien Fund LP have returned capital to investors and are no longer reporting prices to database companies. The funds were self liquidating. Jericho 2010 Tax Lien Master Fund, L.P., launched in March 2010, is based in Florida and managed by the General Partner (itself 100% owned by Scott Svirsky and Glenn Chwatt). Autumn Capital Partners LLP are advisors and Magnum provides Jericho with consulting services, back office support and marketing assistance.
Single trial for 3 accused in Dell insider case: Judge (Reuters)
Two former hedge fund portfolio managers and an analyst charged in a $62 million insider trading scheme will go to trial together in October, a U.S. judge ruled on Thursday. Lawyers for each of the defendants had sought to convince U.S. District Judge Richard Sullivan in Manhattan that they were entitled to separate trials.
AOL launches $400 million share buyback (NDTV)
AOL on Thursday launched a $400 million stock buyback in the latest move aimed at improving shareholder value at the Internet and media group. The company, which fended off a challenge from a hedge fund to revamp its board, said it had begun a modified “Dutch auction” to repurchase shares and boosted the total amount AOL intends to return to shareholders in 2012 to $1.1 billion.
Asian hedge funds lose appetite for short selling, Segaanti to soft close as assets triple, RBS hires David Gray as head of APAC prime services, and KPMG report warns asset managers over light touch regulation (HedgeWeek)
Asia’s hedge fund industry never fails to surprise. In the latest twist in its evolution, some of the region’s oldest funds are apparently ditching short-selling – the very tool that managers use to ‘hedge’ their bets in long/short equity funds – in response to investor pull back reported Reuters this week. The reason being that investors remain unconvinced that short positions actually work and aren’t worth the fees they incur. Quite what this will mean for the region’s reputation – and whether this is a short-term reaction or the start of a long-term trend – remains to be seen; if hedge fund managers can’t successfully build short positions, what does this really say about them? As Reuters rightly points out, the move towards long-only investing as part of the shake-out of Asia’s USD124billion industry could be a potential blow to the prime brokers that support the sector.
Hedge Fund Manager Expands The Spot Experience (HedgeCo)
Former NFL player and hedge fund manager Mitch Marrow has teamed up with real estate firm Rose Associates to provide luxury dog amenity services for Rose’s residential real estate portfolio in New York City. “Our dog amenity program is the first-of-its-kind, and is a win-win for both residential real estate landlords and residents.” Marrow, CEO and founder of The Spot Experience, said, “It allows building owners to present a unique selling service to residents seeking quality service for their beloved family member – their dog, while tenants benefit from having access to the highest caliber of dog services in the city.”
Hedge Fund Law Firm Ogier Wins Offshore Lawyer Award (HedgeCo)
Cayman-based hedge fund law firm Ogier this week won the Offshore Law Firm of the Year award, announced at The Lawyer Awards 2012, in London. “We are absolutely delighted to win the Lawyer Offshore award. Last year was a tremendous year for us; our new office openings in Shanghai and Luxembourg are already making a positive contribution to the Ogier Group and our approach to offering legal and fiduciary services continues to be a winning combination.” Nick Kershaw, Group Chief Executive at Ogier said.
Study Suggests Hedge Funds Are Good For Markets (Finalternatives)
A new academic study asks whether hedge funds make markets inefficient and the answer appears to be ‘no.’ “Hedge Fund Herding and Crowded Trades: The Apologists’ Evidence,” is the work of Blerina Bela Reca of the University of Toledo, Richard W. Sias, University of Arizona and Harry J. Turtle, Washington State University. The authors examined hedge funds’ 13F reports (quarterly filings listing their holdings) to analyze whether “these prototypical sophisticated investors are more likely than other professional investors to engage in potentially destabilizing behaviors.”
$17 Billion Hedge Fund’s Top Dividend Picks (SeekingAlpha)
Ole Andreas Halvorsen is one of the most successful protégés of hedge fund legend Julian Robertson of Tiger Management. Halvorsen worked at Tiger Management for seven years as senior managing director and the director of equities. In 1999, with former colleagues David Ott and Brian Olson, Norwegian-born Halvorsen founded Viking Global Investors. The fund is a long/short global equity fund.
SEC bars hedge fund manager Drew Brownstein from practice (Opalesque)
The U.S. Securities and Exchange Commission on Wednesday ordered convicted hedge fund manager Drew “Bo” Brownstein barred “from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization,” after he pled guilty and eventually sentenced to prison, for insider trading in connection with the Mariner Energy Inc.’s takeover by Apache Corporation in April 2010. The case against the 36-year-old Denver, Colorado-based Brownstein, founder of the hedge fund Big 5 Asset Management, LLC, stemmed after Mariner Energy board member H. Clayton Peterson allegedly tipped his son, Drew Clayton Peterson, with confidential details about Mariner Energy’s upcoming acquisition.
Highfields ups Genworth stake, to discuss options for MI unit (Reuters)
Hedge fund Highfields Capital raised its stake in Genworth Financial Inc (GNW.N) and said it expects to discuss options for the insurer’s U.S. mortgage insurance operations and other businesses. Genworth’s shares rose 9 percent to $5.37 in afternoon trade on the New York Stock Exchange.
Hedge fund managers are paid too much, says hedge fund veteran – Fund Forum (InvestmentEurope)
Hedge fund vereran Manny Roman has conceded managers in his industry are paid too much, adding its name to a growing list of companies regarded as over-generous to its top executives. Speaking at Fund Forum today, Roman said from a social standpoint “of course hedge fund managers get paid too much [and] one cannot justify [the levels] in finance versus other jobs”.
Hilco Launches New Unit to Provide Valuation Services for Illiquid and Non-Publicly Traded Equity and Debt Securities (MarketWatch)
Hilco, a world leader in tangible and intangible asset valuation and monetization solutions announced the launch of Hilco Valuation Advisory (“HVA”), which provides independent third party valuations and reasonableness opinions on existing valuations of less-liquid and non-publicly traded securities. Clients include private equity funds, hedge funds and business development companies that invest in such assets. Aryeh Sheinbein has been named Managing Director and practice leader. He had been the head of the internal valuation and asset management group at Plainfield Asset Management. Prior thereto, he was the co-head of the Hedge Fund Portfolio Valuation Group at Duff & Phelps. Mr. Sheinbein has also held investment research positions with JP Morgan, UBS and Bank of America.
Fortress Receives Second Consecutive “Credit-Focused Hedge Fund of the Year” Award from Institutional Investor (BusinessWire)
Fortress Investment Group LLC (NYSE: FIG) was recognized for a second consecutive year as “Credit-Focused Hedge Fund of the Year” at Institutional Investor’s 10th Annual Hedge Fund Industry Awards. The award recognizes 2011 investment performance, risk management, investment discipline and selection, stability of investment team, investor relations and infrastructure. Fortress managing director Drew McKnight, who joined the firm’s Credit team in 2005, was also recognized during this year’s event as an Institutional Investor “Rising Star.” The award recognizes professionals whose accomplishments in, and contributions to, the industry make them standout among their peers and position them as future industry leaders.
Sigma Designs Issues Letter To Shareholders (RTTNews)
Sigma Designs, Inc. (SIGM: News ) said Thursday that it has mailed a letter to its shareholders urging them to vote for Sigma’s approved slate of directors and discard the nominees of dissident hedge fund Potomac Investment Partners III, L.P. According to Sigma, Potomac Investment, which is a 7.9 percent shareholder of the company, is seeking control of the Board with nomination of three out of four directors.
Nordic group SEB consolidates and expands in alternatives space (Opalesque)
Nordic financial group SEB is to formalise its fund of hedge fund offering with the completion of the merger of its Key Asset Management which it bought in 2007, with its in-house offerings. Key is one of the oldest fund of hedge funds groups, founded in 1989 and currently offers a range of funds of funds which are now pooled with SEB’s two, the Dynamic Manager Alpha and the True Market Neutral Portfolio. Beyond the fund of hedge fund business, SEB acts as a prime broker in the hedge fund space, numbering the Swedish group Brummer & Partners among its clients, and also offers Hedge Fund Seeding business and an advisory business, Alpha Advisory.
Practice Fusion Pulls In $34M Series C Led By Artis To Crush The Other eMedical Record Startups (TechCrunch)
Practice Fusion is the frontrunner in the fevered race to become the electronic medical record platform, and today it finished raising a $34 million Series C led by hedge fund Artis Ventures to make sure it wins and lead it towards an IPO. Practice Fusion’s valuation is now around a half a billion dollars, it tells me. Startups trying to compete? “We’re squashing them” founder and CEO Ryan Howard tells me. It now hosts 40 million patient records of its 150,000 doctor and other medical professional clients, up from 25 million records and 130,000 clients seven months ago.
Newark School Reform: About That $100 Million … (BusinessWeek)
Cory Booker, the mayor of Newark, N.J., is a prodigious Twitter user. Not surprisingly, when he arrived at the annual Allen & Co. retreat in Sun Valley, Idaho, in July 2010, he took the time to send out a note to his followers. The conference is a laid-back scene where billionaires like Rupert Murdoch, Warren Buffett, and Bill Gates enjoy the outdoors, trailed by packs of reporters and photographers. “Lots of leaders of industry here,” Booker tweeted. “Very engaging conversations.” Booker was ostensibly in Sun Valley to talk about the future of American cities with Charlie Rose. Like any politician, he was also prospecting for donors. His friend, Sheryl Sandberg, chief operating officer of Facebook (FB), told him that the company’s co-founder, Mark Zuckerberg, would be attending. Booker was eager to meet him.
Qatar’s fund seeks better Xstrata deal (Gulf-Daily-News)
Qatar Holding’s late rebuff of Glencore’s $26 billion bid for miner Xstrata indicates a more assertive stance by the sovereign fund, which has hitherto been content with a less muscular role in its big-name portfolio. In an unusually aggressive move for sovereign wealth funds, which typically keep their heads down to avoid any political backlash, Qatar piled the pressure on Glencore for a better deal at the 11th hour. “This is more like a private equity, hedge-fund style transaction, not the kind of stuff you associate (with) sovereign wealth funds in the region,” said the investment banking head of a global bank in Dubai.
Gutterman and companies to pay over USD2.5m over gold and oil commodities fraud (HedgeWeek)
The US District Court for the Southern District of Florida has entered an order of default judgment and permanent injunction against Abraham Gutterman, who currently resides in Brooklyn, NY, and his companies, Alliance Capital Metals LLC (ACM) and AR Goldman Wealth Management, LLC (ARGWM), both of South Florida. The order stems from a CFTC complaint filed against the defendants on 15 March, 2012, in connection with a fraudulent gold and oil commodity options scheme.
Banca March’s investment boutique launches fixed income hedge fund (Opalesque)
March Gestión de Fondos (MGF), the investment boutique of Banca March, an independent Spanish bank, has launched a new hedge fund, according to reports from Agefi and Funds People. It is a second version of an already existing fund called March Patrimonio Renta FIL. Also regulated in Spain, the new fund is called March Patrimonio Renta 2, FIL. It was created on 17th May and registered in Spain on 22nd June, 2012.
Isis hires Weaver as SVP of operations (RoyalGazette)
Isis Fund Services Ltd (ISIS) announced Marc Weaver has as joined the firm as senior vice-president of operations. Mr Weaver will be responsible for managing the operations of the company including portfolio and fund accounting as well as investor services. With over 12 years’ experience in the area of fund administration, Mr Weaver joined ISIS Fund Services from Citi Hedge Fund Services (Citi), where he was a vice-president managing a business unit that provided administration for up to 65 hedge funds with combined net assets totaling $12.5 billion.
Dow Jones Launches an Index of Indexes (HedgeCo)
Dow Jones Indexes has launched the Dow Jones RBP U.S. Directional Allocation Index, a gauge that automatically allocates weights among other indexes that reflect distinct viewpoints on the U.S. market. Constructed as an “index of indexes,” the new gauge reallocates among an “aggressive” index, a “defensive” index and a “market” index—while also allowing the possibility to allocate fully to a cash component—based on an automated system that uses economic and market indicators as inputs.
Pimco Hires Three As Bridwell’s Alternatives Unit Grows (Bloomberg)
Pacific Investment Management Co., manager of the world’s biggest mutual fund, hired three professionals to bolster the unit run by Jennifer Bridwell that oversees hedge funds and distressed debt. Neal Reiner, Molly Hall and Jennifer Strickland have started at the firm and are based in the Newport Beach, California, headquarters, the firm said today in a statement.
Appeals court upholds Walnut Place suit dismissal (Reuters)
A state appeals court on Thursday upheld the dismissal of a lawsuit brought against Bank of America Corp by investors who wanted the bank to buy back mortgage loans issued during the financial crisis. The case was filed by entities known as Walnut Place, who had invested in more than $1 billion in securities backed by the mortgages. Walnut Place is a name used by the Baupost Group, a Boston-based hedge fund run by money manager Seth Klarman.
Russia’s Alfa says it has $1.5 billion in Pamplona (Reuters)
The investment group which this week raised its stake in Italian bank Unicredit (CRDI.MI) to 5 percent is a quarter funded by billionaire Mikhail Fridman’s Alfa Group, according to the Russian conglomerate. Alfa Group has about $1.5 billion invested in a number of funds run by private equity and hedge fund Pamplona, Alfa said on Friday.
RIM delays new BlackBerry launch; sales crumble (Reuters)
Research In Motion Ltd delayed the make-or-break launch of its next-generation BlackBerry phones until next year, in a devastating setback to the once-dominant technology company whose sales are crumbling. Shares of the company, which also announced a steeper-than-expected quarterly operating loss and deep job cuts on Thursday, plunged 14 percent after it said it would release its revamped BlackBerry 10 devices early in 2013. It conceded the development had “proven to be more time-consuming than anticipated.”
Everything You Need To Know About Paul A. Jenson, Phil Falcone’s Former COO (BusinessInsider)
After the SEC brought fraud charges against hedge fund giant Phil Falcone and former Harbinger Capital Partners Chief Operating Officer Peter Jenson this afternoon, you may have been left wondering the same thing we were: who is Peter Jenson? Well, after combing the internet this afternoon, here’s what we could find.
Some Wonderful, Genius Person Made A Hugh Hendry’s Greatest Smackdowns Video (BusinessInsider)
Hugh Hendry, founder of hedge fund Eclectica Asset Management, is known for being brainy and quick witted on camera. Unfortunately for us, he’s just not on camera enough. That’s why the wonderful people at The Trader compiled this wonderful 4 minute video of his greatest hits, or K.Os… however you want to describe them (h/t ZeroHedge).
Australian Fund Monitors Hedge Fund Index outperforms equities in last twelve months (Opalesque)
June 30th is the end of the financial year in Australia, and the last trading day is today. However, Australian investors who invest equities may find it difficult when looking at realised gains, as listed equities have not done so well, reports Chris Gosselin in the latest Australian Fund Monitors Pty Ltd release received by Opalesque. Indeed, the ASX200 went down around 10.70% in the last 12 months, and down almost 40% since early November 2007. The major Australian stock market index is currently at around 4,094, down 1.3% YTD. (Historically, from 1992 until 2012, the S&P/ASX 200 averaged 3445, reaching an all time high of 6828 in November 2007, and a record low of 1358 in November of 1992, according to Trading Economics.)
Claren Road majority owner Rubenstein shells out $2 million for copy of Lincoln’s Emancipation Proclamation (Absolutereturn-Alpha)
David Rubenstein, whose Carlyle Group owns 55% of the $6.2 billion distressed hedge fund Claren Road Asset Management, paid a shade more than $2 million this week for a copy of the Emancipation Proclamation signed by President Abraham Lincoln. “This particular document is I think the most important thing any president has ever done with the stroke of his pen. It did not end slavery, but it began the process toward the ending of slavery,” Rubenstein told CBS New York after beating out one other bidder for the artifact.
SEC Charges Long Island Software Company in Connection With Bribery Scheme (SEC)
The Securities and Exchange Commission today charged that FalconStor Software, Inc., a Long Island, N.Y., data storage company, misled investors about bribes it paid to obtain business with a subsidiary of J.P. Morgan Chase & Co. FalconStor admitted to the bribery scheme and agreed to pay a $2.9 million penalty and to institute enhanced compliance measures to settle the SEC’s civil lawsuit, filed in U.S. District Court for the Eastern District of New York. The settlement is subject to court approval. FalconStor will pay an additional $2.9 million as part of a deferred prosecution agreement with the U.S. Attorney’s Office for the EDNY, which filed a related criminal case against the Melville, N.Y., company.
SEC Adopts New Procedures for Reviewing Clearing Submissions Under Dodd-Frank Act (SEC)
The Securities and Exchange Commission has adopted rules that establish procedures for its review of certain clearing agency actions. The rules were required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which called for a new regulatory framework for trading in over-the-counter derivatives, including swap agreements. The rules detail how clearing agencies will provide information to the SEC about security-based swaps that the clearing agencies plan to accept for clearing. The information is intended to aid the SEC in determining whether such security-based swaps are required to be cleared.
SEC Shuts Down $42 Million Ponzi-Like Scheme (SEC)
The Securities and Exchange Commission today announced that it has obtained an emergency court order to halt an alleged Ponzi-like scheme operated by Small Business Capital Corp. and its principal Mark Feathers, who raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC – two mortgage investment funds they controlled. The SEC alleges that more than 400 investors were attracted to the funds by promises that profits from mortgage investments would yield annual returns of 7.5 percent or more. In reality, Feathers operated a Ponzi-like scheme by paying returns to investors that came partly from fund profits and partly from other investors.
HF Lawyer Discusses Loosening of Solicitation Rule (HedgeFund)
Longtime attorney Richard Heller was not surprised by the Securities and Exchange Commission announcing Thursday that it needs more time for implementing final rules allowing hedge funds to advertise to potential investors. Heller, a partner at the law firm Thompson Hine, predicted this would happen in an interview he did last week with eVestment|HFN.
The Fishing Guide Who Hooked Hedge-Fund Titan Bill Ackman (Forbes)
This article appears in the July 17th issue of Forbes. Oliver White is 32 years old, rake-thin and brown eyed, with windblown hair that pokes from his hat as if seeking the sunlight. Thanks to an unlikely meeting with one of the world’s most powerful hedge fund managers, White is a brand in the making in the fishing and travel industry. But the day we meet, at Snake Cay, an expansive flat of knee-deep water on the western shore of Great Abaco Island in the Bahamas, he has gone back to his roots.
Paulson Europe partner Mina Gerowin retires (AbsoluteReturn-Alpha)
Mina Gerowin, a London-based partner at $22.6 billion Paulson & Co. who helped lead European investments, has retired. The 13 person London office will continue to be led by partners Harry St. John Cooper and Nikolai Petchenikov. A spokesman for Paulson declined to comment on the retirement…
Former Woodbine, D. E. Shaw portfolio managers mull new commodities fund (AbsoluteReturn-Alpha)
Two recently-departed portfolio managers from ailing Woodbine Capital Advisors are considering the launch of a new commodities fund. Mark Masselink, previously a portfolio manager at $15 billion Moore Capital Management and $17 billion D. E. Shaw, would team up with longtime colleague C.J. Steffen in the new venture, people familiar with the plans said. The pair were co-portfolio managers of Woodbine’s commodities trading division for less than two years until this…
