EIC/Wall Street investigations
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Jan 5, 2012
via Unstructured Finance

The new guy sitting at Steve Cohen’s side

By Matthew Goldstein

SAC Capital industrials trader Charles Simonian is getting a new job–one that’s very close to Steve Cohen.

The SAC Capital founder is moving Simonian onto his own small team of traders and analysts at the $14 billion firm, say sources. Simonian will work with Chandler Bocklage in overseeing trading in industrial sector stocks for the so-called Cohen Account–a portfolio that manages between $2 billion and $3 billion in gross exposure to the market. (Gross exposure includes the value of long and short positions).

Jan 5, 2012
via Unstructured Finance

The taxman cometh for MF Global

By Matthew Goldstein

You can add the U.S. Internal Revenue Service to the long list of creditors and customers looking to get their money back from MF Global, the failed futures brokerage firm.

The IRS slapped a lien on what’s left of MF Global, seeking to recoup some $395,000 in unpaid taxes stemming from 2006 and 2007. The tax lien was filed with New York State’s division of corporations on Nov. 16, about three weeks after MF Global filed for bankruptcy.

Jan 4, 2012

PIMCO flagship had Dec outflows of $1.4 bln

By Matthew Goldstein and Jennifer Ablan

(Reuters) – The PIMCO Total Return Fund, the world’s largest bond fund, had $1.4 billion (897 million pounds) in outflows in December, according to fund analytics firm Morningstar.

The fund PTTRX.O, operated by Bill Gross, co-chief investment officer of Pacific Investment Management Co, suffered total redemptions of $5 billion in 2011, a year in which the fund underperformed benchmarks after betting heavily against U.S. Treasuries, which rallied on the year.

Jan 4, 2012

PIMCO flagship had December outflows of $1.4 bln – Morningstar

By Matthew Goldstein and Jennifer Ablan

(Reuters) – The PIMCO Total Return Fund, the world’s largest bond fund, had $1.4 billion in outflows in December, according to fund analytics firm Morningstar.

The fund, operated by Bill Gross, co-chief investment officer of Pacific Investment Management Co, suffered total redemptions of $5 billion in 2011, a year in which the fund underperformed benchmarks after betting heavily against U.S. Treasuries, which rallied on the year.

Jan 4, 2012

MF Global sold assets to Goldman before collapse: sources

By Lauren Tara LaCapra and Matthew Goldstein

(Reuters) – MF Global unloaded hundreds of millions of dollars’ worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz), one of the sources said.

The sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd (MFGLQ.PK: Quote, Profile, Research, Stock Buzz) filed for bankruptcy on October 31, the ex-employees said. One of the employees said the transaction was cleared with JPMorgan Chase.

Jan 3, 2012

Gross’s bond fund bleeds $1.4 billion in December: Morningstar

By Matthew Goldstein and Jennifer Ablan

(Reuters) – The PIMCO Total Return Fund, the world’s largest bond fund, had $1.4 billion in outflows in December, according to fund analytics firm Morningstar.

The fund, operated by Bill Gross, co-chief investment officer of Pacific Investment Management Co, suffered total redemptions of $5 billion in 2011, a year in which the fund underperformed benchmarks after betting heavily against U.S. Treasuries, which rallied on the year.

Dec 23, 2011
via Unstructured Finance

The guy who is killing it at SAC Capital

By Matthew Goldstein

Move over Steve Cohen. The trader who is killing it at Cohen’s $14 billion SAC Capital Advisors this year is Gabriel Plotkin.

The portfolio manager, who specializes in consumer products and the gaming and lodging industry, is one of the top producers this year at Cohen’s hedge fund, say several people familiar with the Stamford, Conn. hedge fund. Plotkin, who joined SAC Capital in late 2006 from North Sound Capital, is emerging as on Cohen’s most reliable money men.

Dec 21, 2011
via Unstructured Finance

LightSquaredHarbingerCapital Inc.

By Matthew Goldstein

It’s no secret that LightSquared and Phil Falcone’s Harbinger Capital Partners long have been joined at the hip–especially since the $5 billion hedge fund is the wireless telecom’s biggest equity investor. And a recent financial statement for the Falcone-backed start-up makes it clearer than ever just how closely linked are the fortunes of LightSquared and Harbinger.

As we reported, the LightSquared document reveals that on July 1 the company got $263.8 million in new financing, of which $183.8 million came from hedge funds controlled by Harbinger and Falcone. The hedge fund is getting 2.9 million in warrants to purchase additional shares in LightSquared, which is facing the prospect of running-out of cash during the second-quarter of 2012.

Dec 19, 2011

Exclusive: Falcone’s wireless company running out of cash

NEW YORK (Reuters) – The upstart wireless company that is being bankrolled by Philip Falcone’s $5 billion Harbinger Capital Partners hedge fund could run out of money during the second quarter of 2012, according to the company’s financial statement.

LightSquared, which registered a $427 million net loss during the first nine months of this year, may not be able to “continue as a going concern” unless it can raise additional capital and financing, the statement reviewed by Reuters said.

Dec 19, 2011

Falcone’s wireless company running out of cash

NEW YORK, Dec 19 (Reuters) – The upstart wireless company
that is being bankrolled by Philip Falcone’s $5 billion
Harbinger Capital Partners hedge fund could run out of money
during the second quarter of 2012, according to the company’s
financial statement.

LightSquared, which registered a $427 million net loss
during the first nine months of this year, may not be able to
“continue as a going concern” unless it can raise additional
capital and financing, the statement reviewed by Reuters said.