D.E. Shaw In Talks To Buy Stake In China (Bloomberg)
D.E. Shaw & Co., the $21 billion hedge-fund firm, is in advanced talks to buy a stake in Chinese state-controlled investment company Tianjin TEDA International Holding (Group) Co., said three people familiar with the matter. D.E. Shaw is in negotiations to acquire 15 percent to 20 percent of TEDA International for as much as 6 billion yuan ($942 million), one of the people said. D.E. Shaw in May agreed to start stock-brokerage and private-equity businesses in India with billionaire Mukesh Ambani as demand for financial services grows in the world’s second-fastest growing major economy.
Highbridge Cuts Execs, Including Two PMs, In Tough Year (AR)
With its $1.8 billion long/short equity fund down 12.6% this year, $26.1 billion Highbridge Capital Management has let go of three senior executives and at least three analysts and traders in its New York and Hong Kong offices. In New York, Highbridge let go portfolio manager Jennifer Failla, who covered the retail sector for the long/short fund and previously worked for Bear Stearns; Chris Storey, an analyst covering financials, and Don Kuzoian, an analyst covering technology.
Senior Marketer Larry Pokora Leaves Paulson (AR)
Larry Pokora, one of Paulson & Co.’s top investor relations executives, left the firm last week. Details surrounding the departure and his future plans were not immediately available. Pokora, a senior vice president for institutional investor relations, did not respond to a request for comment and a spokesman for Paulson declined to comment.
Gold Futures Continue Slide After Fed Decision (Market Watch)
The precious metal’s futures for February delivery dropping $20.10, or 1.2%, to $1,643 during Asian afternoon hours, losing further ground after finishing at its lowest level since Oct. 24 on the Comex division of the New York Mercantile Exchange overnight. James Steel, a metals analyst at HSBC Securities, said that year-end book-squaring by institutions and profit-taking by hedge funds at the end of a difficult year may be weighing on gold, with potential buyers also reluctant to step in.
RSR Capital Returning Money After Asia Hedge Fund Losses (Reuters)
Singapore-based hedge fund RSR Capital is returning money to external investors and plans to change the fund’s strategy for a possible relaunch next year, said Chief Operating Officer and Founding Partner Christophe Delorme. RSR Capital’s volatility hedge fund, Caerus Arbitrage Asia, started trading with $4 million in August last year and managed about $60 million (39 million pounds) in May 2011.
Arcadia To Return Cash After Seeder Quits (FINalternatives)
New York-based Arcadia Capital Advisors plans to liquidate its hedge fund after its seed investor moved to redeem its capital. MD Sass decided to pull its investment due to New York-based Arcadia’s inability to raise money, after a three-year contract with Arcadia expired in October.
Indiana Hedge Fund Manager Accused Of $7 Million Fraud In Plea Deal (Finalternatives)
An Indiana hedge fund manager agreed to plead guilty to defrauding investors of more than $7 million. Samex Partners founder Keenan Hauke struck a plea deal with federal prosecutors, agreeing to plead guilty to one count of securities fraud in exchange for a recommended prison sentence of no more than 17 years. The charge carries a maximum sentence of 25 years.
Third Point Blasts Yahoo ‘Mismanagement’ (FINalternatives)
Daniel Loeb’s Third Point chief renewed his war of words with the Internet search company, pronouncing himself “extremely troubled” by its management’s behavior. In particular, Loeb took aim at a reported “sweetheart PIPE deal which will serve only to entrench [founder Jerry] Yang and the current board while massively disenfranchising public shareholders and permanently robbing us of the opportunity to obtain a control premium.” Loeb said that the sale of the whole company, rather than minority stakes, was in the best interest of shareholders.
First Sentencing Set In Conn. Ponzi Scheme (FINalternatives)
The first of three men to plead guilty in a $540 million hedge fund Ponzi scheme will learn his fate today. A federal judge in Connecticut will sentence Juan Carlos Guillen Zerpa this morning. Prosecutors are seeking between 27 and 33 months for the Venezuelan accountant, who admitted to producing a bogus letter verifying $275 million in imaginary assets. Zerpa and another man, Juan Carlos Horna Napolitano, who has also pleaded guilty, were paid more than $3 million for the letter by Francisco Illarramendi. Illarramendi has also pleaded guilty, to running the Ponzi scheme at his Michael Kenwood Group and Highview Point Partners.