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Jul 30, 2013

Ackman’s fund sitting on growing losses on Herbalife bet

BOSTON (Reuters) – Herbalife’s surging stock price may be causing hedge fund manager William Ackman some gastrointestinal pain now that he is sitting on $300 million worth of losses due to his bet that the nutrition and supplements’ company’s shares would fall, a person familiar with the fund said.

Shares of Herbalife are now trading up 30 percent from where Ackman first began betting that the stock would fall.

Jul 29, 2013

U.S., Japanese stocks boosts Loeb’s Third Point fund

NEW YORK (Reuters) – Bets on U.S. and Japanese stocks helped Daniel Loeb’s hedge fund, Third Point, gain 3.3 percent during the second quarter, even as equity and bond markets suffered rapid sell offs in June, the manager told his investors on Monday.

Loeb, who is one of the $2.25 trillion hedge fund industry’s best known names, said many of his firm’s positions reached their price targets, and that he “began to sell them near their highs in May and early June before the market began to correct sharply.”

Jul 29, 2013

SEC fraud case against ex-Goldman trader Tourre in homestretch

NEW YORK, July 29 (Reuters) – Testimony ended Monday in the
civil fraud case of Fabrice Tourre, with lawyers for former
Goldman Sachs trader not calling any witnesses before the U.S.
Securities and Exchange Commission’s case goes to a Manhattan
federal jury.

Tourre’s lawyers had been expected to call witnesses
including hedge fund billionaire John Paulson to testify on his
behalf.

Jul 29, 2013

Paulson will not testify in Tourre trial

NEW YORK (Reuters) – Hedge fund billionaire John Paulson will not testify in the high-profile civil case against former Goldman Sachs Group Inc bond trader Fabrice Tourre, who is on trial in federal court in New York.

The U.S. Securities and Exchange Commission accuses Tourre of failing to tell investors that 57-year-old Paulson’s hedge fund firm intended to bet against Goldman Sachs’ Abacus 2007-AC1. The $2 billion offering was tied to subprime mortgage bonds and known as a synthetic collateralized debt obligation.

Jul 26, 2013

Einhorn closed J.C. Penney short in Q2 -letter

NEW YORK, July 26 (Reuters) – Hedge fund manager David
Einhorn closed a bet against ailing retailer J.C. Penney Co Inc
in the second quarter and also closed a long position in
software company Microsoft Corp, according to a
quarterly note to investors in his Greenlight Capital.

Einhorn said the short bet against J.C Penney was the $8
billion firm’s “most profitable short of 2012.” When a hedge
fund manager is short a stock he believes the value of the
shares will fall. If he is long, he believes the stock will rise
in value.

Jul 25, 2013
via Unstructured Finance

For SAC employees, it’s not any given Thursday

By Katya Wachtel and Peter Rudegeair

At SAC Capital Advisors’ sprawling Stamford, Connecticut headquarters on Thursday morning,¬† security guards barred reporters from getting too close to the office building, holding them to an intersection a few hundred yards from the driveway.

A security guard said SAC had not added any extra security at 72 Cummings Point Rd today, when federal authorities charged Steve Cohen’s $15 billion hedge fund with wire and securities¬† fraud in connection with its long-running insider trading probe. But those who know the location¬† disagreed.

Jul 25, 2013

SAC indictment describes ‘insider trading group’ at Citadel: sources

NEW YORK (Reuters) – A former employee of SAC Capital Advisors’ Chicago office, Richard Lee, was once part of an “insider trading group” at a rival hedge fund, according to court filings, and a source familiar with the matter said the hedge fund Lee had worked for was Citadel Investment Group.

Charges filed in U.S. District Court in New York on Thursday against Steven A. Cohen’s SAC Capital describe the move Lee made from a hedge fund, identified only as “Hedge Fund A” to SAC, despite a warning that Lee “was known for being part of Hedge Fund A’s ‘insider trading group.’”

Jul 19, 2013

Timeline: SAC and the long, winding insider trading probe

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission on Friday charged hedge fund mogul Steven A. Cohen with failing to supervise a former SAC Capital Advisors portfolio manager and another SAC executive, both of whom are facing criminal and civil insider trading charges.

The SEC charges are part of a long-running probe of Cohen and his $15 billion hedge fund by regulators and federal investigators in which nine one-time SAC employees have been charged or implicated with insider trading.

Jul 19, 2013

SAC and the long, winding insider trading probe

NEW YORK, July 19 (Reuters) – The U.S. Securities and
Exchange Commission on Friday charged hedge fund mogul Steven A.
Cohen with failing to supervise a former SAC Capital Advisors
portfolio manager and another SAC executive, both of whom are
facing criminal and civil insider trading charges.

The SEC charges are part of a long-running probe of Cohen
and his $15 billion hedge fund by regulators and federal
investigators in which nine one-time SAC employees have been
charged or implicated with insider trading.

Jul 19, 2013
via Unstructured Finance

This summer, it’s the John Paulson show

Hedge fund manager John Paulson has shunned the limelight in recent years but in recent weeks it’s a different story, with the 57-year-old manager not only giving his first ever TV interview, he’s also set to take the stand in one of the most closely-watched trials in the country – the civil case against former Goldman Sachs trader Fabrice Tourre.

Tourre’s lawyer Sean Coffey said in a Manhattan federal court on Friday morning they intended to call Paulson to testify in the trial. The U.S District Judge overseeing the trial estimated Paulson would probably take the stand August 1.

    • About Katya

      "Katya Wachtel is a hedge fund and big money reporter for Reuters. She hails from Melbourne. Australia, not Florida. You can contact her at katya.wachtel@thomsonreuters.com"
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