FBI has eyed Loch Capital founder since 2009-filing
NEW YORK, May 27 (Reuters) – When federal agents raided the
offices of Boston-based hedge fund Loch Capital Management last
November, they already had evidence that one of the hedge
fund’s founders had obtained “inside information,” according to
a court filing.
Todd McSweeney may have used the information from a
so-called expert network firm to engage in wrongful trading,
according to a wiretap application. The document came to light
when it was attached to a motion filed in a related case.
Einhorn’s Field of Dreams
By Matthew Goldstein
David Einhorn’s decision to plunk $200 million on the cash-strapped NY Mets could be a bullish development for investors holding the bonds to finance the baseball team’s new stadium.
At last look, most of the bonds that were sold in 2006 to finance the construction of Citi Fields were selling for between 79 cents and 85 cents on the dollar. The distressed price for the $547 million bond issuance is a reflection of the dire financial situation the Mets are in and the reason principal owner Fred Wilpon is selling a big minority stake to Einhorn.
Hedge fund chiefs: short green tech, store gems
NEW YORK (Reuters) – Bet against solar energy, says famed short seller James Chanos. Squirrel away gems, advises bond guru Jeffrey Gundlach. Go long on discount retailer Family Dollar, counsels activist investor Bill Ackman.
These and other hot — or unusual — ideas emerged on Wednesday from an annual conference where top hedge fund managers pitch their best investment ideas.
Chanos recommends shorting Vestas, First Solar
NEW YORK, May 25 (Reuters) – Famed short-seller Jim Chanos
on Wednesday threw cold water on alternative energy companies,
saying that shares in wind turbine maker Vestas (VWS.CO: Quote, Profile, Research) and
solar panel maker First Solar Inc (FSLR.O: Quote, Profile, Research) likely will fall.
Chanos said solar and wind energy are not the panacea that
many predict. He doubts the technologies will be that
successful or create all the jobs that politicians have
predicted.
Grassley the inquisitor
Sen. Chuck Grassley wants to know what the Securities and Exchange Commission did with complaints it received about potential improper trading by Steve Cohen’s SAC Capital.
But Grassley’s request that the SEC provide an official accounting for its actions seems a bit odd, given that securities regulators recently settled an insider trading case with former SAC Capital analyst Jonathan Hollander.
Steve Cohen runs away from his Fairfax co-defendants
Steven Cohen wants a five-year-old stock manipulation lawsuit filed by Canadian insurer Fairfax Financial Holdings to go away.
Earlier this month, lawyers for Cohen’s SAC Capital Advisors filed a motion for summary judgment, claiming Fairfax has failed to produce any evidence his $13 billion hedge fund conspired with other traders to crush the insurers stock. SAC Capital’s lawyers write that even though Fairfax has “received millions of pages of documents from SAC, other defendants, and third parties…not a single scrap of evidence suggests that Mr. Cohen engaged in even one of these alleged acts.”
Sen. Grassley investigating SAC Capital trades
CHICAGO/NEW YORK (Reuters) – Senate Judiciary Committee head Charles Grassley is investigating possible insider trading at SAC Capital Advisors LLP, highlighting increased public scrutiny of potential wrongdoing by hedge funds.
The Financial Industry Regulatory Authority last week provided Grassley with about 20 instances of suspicious trading at the hedge fund, a spokeswoman for the senator confirmed on Saturday.
U.S. senator investigating SAC Capital trades
CHICAGO/NEW YORK, May 21 (Reuters) – A powerful U.S.
Republican lawmaker is investigating possible insider trading
at SAC Capital Advisors LLP, highlighting increased public
scrutiny of potential wrongdoing by hedge funds.
The Financial Industry Regulatory Authority last week
provided Senate Judiciary Committee head Charles Grassley with
about 20 instances of suspicious trading at the hedge fund, a
spokeswoman for the senator confirmed on Saturday.
A Philadelphia story
Tyrone Gilliams is a commodities trader who likes to party hardy but is now being sued by an investor for fraud.
In terms of dollars, this case isn’t the biggest–the investor claims Gilliams misappropriated some $4 million and spent it on personal expenses. But the lawsuit reveals that apparent investment schemes continue to proliferate, even after the implosion of Bernard Madoff’s giant Ponzi scheme.
Special Report: A fame-seeking Philly trader’s rap falls flat
NEW YORK (Reuters) – Tyrone L. Gilliams Jr., a commodities trader, part-time online preacher and hip hop event promoter, is not one for understatement.
In a promotional video for a celebrity-studded charity event last December — among the headliners was rapper Sean “Diddy” Combs — Gilliams mugs for the camera. Posing with stacks of money on his lap, he bills himself as a mogul, a philanthropist and a self-starter.
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