Unstructured Finance

Kinnucan v. Ainslie

By Matthew Goldstein and Svea Herbst-Bayliss

John Kinnucan, a research consultant who’s been linked to an ongoing insider trading probe, claims Maverick Capital founder Lee Ainslie has stiffed him by not paying all of the hedge fund’s bill from last year.

The Portland, Oregon-based Kinnucan tells Reuters/ Unstructured Finance that Maverick owes him $15,000 for research information he provided on technology companies in the second-half of 2010. The consultant says it was anger over Maverick’s outstanding tab that prompted him to send a brief and alarming email this week to Ainslie warning him that his $11 billion fund may “soon be charged with insider trading.”

Kinnucan, who concedes he has no inside scoop on what federal prosecutors are planning, says he was just having some fun at Ainslie’s expense because Maverick is the only one of his former customers that still owes him money. Kinnucan says Maverick won’t pay because the hedge fund contends he “caused a lot of disruption to their business.”

That’s a reference, of course, to Kinnucan’s well-publicized refusal to cooperate with the insider trading investigation. Last fall,  after refusing to implicate his clients in any wrongdoing, Kinnucan dashed off an email to all of them alerting them of the FBI’s interest. In his email this week to Ainslie, which was first reported by Business Insider, Kinnucan “cc’d” that same group of hedge fund and mutual fund traders and analysts.

An Ainslie spokesman’s response to the dust-up with Kinnucan was rather dismissive. “Kinnucan has asserted similar claims to Maverick about work he thinks he has done in Maverick’s behalf,” says Fraser Seitel. “Maverick is discussing the matter with him.”

GAIM 2009: Hendry’s investment outlook

Watch maverick fund manager Hugh Hendry, partner and CIO at Eclectica Asset Management, talk about his investment outlook at this week’s GAIM 2009 hedge fund conference in Monaco.

Saving Hendry? Thanks but no thanks, says Hugh

rtr1z9ud1It was always unlikely that a letter of advice was going to change the mind of maverick hedge fund manager Hugh Hendry.

 

And in his latest letter to investors, Hendry has smartly rebuffed any attempt to ‘save’ him from his bond investments.

 

The letter in question – Gregor.us’s monthly note, entitled “Saving Hugh Hendry” – praises the Eclectica co-founder and CIO as a “brilliant and colourful” hedge fund manager who saw the coming storm and took cover well in advance.

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