Exclusive: An Inside Look At David Einhorn’s “Big Short” (Reuters)
Hedge fund manager David Einhorn is taking an even harder line against Green Mountain Coffee Roasters (GMCR.O), his big short trade, claiming a recent audit committee review of the accounting issues he flagged is nothing more than a “whitewash.” “I think everything we said in the presentation is right now as it was then — and in many cases even more so,” said the 43-year-old manager, who runs one of $2 trillion hedge fund industry’s better-known long/short funds and also is an accomplished poker player.
Amaranth’s $77.1 Million Manipulation Settlement Approved (Bloomberg)
A federal judge approved a $77.1 million settlement by Amaranth Advisors LLC, the hedge fund that collapsed in 2006 after losing $6.6 billion on natural gas trades, of a lawsuit brought by traders who accused it of market manipulation. In August 2009, the Commodity Futures Trading Commission announced that Greenwich, Connecticut-based Amaranth paid $7.5 million to settle allegations that the hedge fund tried to manipulate natural gas futures three years earlier. In their suit, the traders presented an expert who estimated damages at $3.5 billion, court records show.
Gensler Says CFTC Plans To Propose Volcker Rule In January (Bloomberg)
U.S. Commodity Futures Trading Commission Chairman Gary Gensler said his agency may vote to propose the so-called Volcker Rule in January, following in the footsteps of four other federal agencies. The CFTC is the last of five U.S. financial regulators to propose the rule, which would curtail banks’ proprietary trading and limit their relationships with hedge funds. The rule, named for former Federal Reserve Chairman Paul Volcker, is required by the 2010 Dodd-Frank Act.
Bank Of America Can Trade MF Global Claims, Judge Says (Bloomberg)
Bank of America Corp. (BAC) can trade claims on bankrupt MF Global Holdings Ltd. after setting up so- called screening walls to ensure that knowledge it gains from being a member of the creditors committee doesn’t reach its traders, a judge said in a court order. Such requests are common among banks and hedge funds that have loans and investments in bankrupt companies along with separate trading desks. Elliott Management Corp., another MF Global committee member, also sought permission to trade the company’s claims, as it did in the Lehman Brothers Holdings Inc. case, where it’s also is a member of the creditors’ committee.
Greek Debt Talks Hit Trouble As Hedge Fund Walks Out (Reuters)
Talks over restructuring part of Greece’s massive public debt ran into trouble on Tuesday as one fund walked away from negotiations, fuelling growing doubts about whether a deal that is crucial to a new bailout agreement can be reached this year. Vega Asset Management, a Madrid-based fund, resigned from the steering committee representing private creditors negotiating a voluntary restructuring of Greek government bonds, two sources familiar with the situation said.
LightSquared Presses FCC Over Wireless Network (WSJ)
Phil Falcone‘s telecom start-up LightSquared Inc., facing a year-end deadline with partner Sprint Nextel Corp., pressed federal officials Tuesday to rule against critics who say the company’s proposed national wireless-Internet network will interfere with global-positioning systems. In a filing, LightSquared said the Federal Communications Commission should find that it has no obligation to pay for a fix for the GPS interference and that its opponents can no longer stand in the way of the company’s commercial launch, slated for next year.
Bridgewater, Blackstone Buck No-Holiday-Party Trend (FINalternatives)
Wall Street’s biggest banks are still shying away from the extravagant holiday parties that helped make them infamous before the financial crisis. But while Goldman Sachs, JPMorgan Chase, Citigroup and Bank of America held no holiday parties for their employees, alternative investments firms aren’t without the holiday spirit. None are so full of it, perhaps, as Bridgewater Associates: the country’s largest hedge fund rented out the whole of the 10,000-seat Webster Bank Arena in Bridgeport, Conn., for its party. The arena is more used to hosting college basketball and minor-league hockey games.