Co-founder of defunct hedge fund Diamondback launches new firm (GlobalPost)
Richard Schimel will launch a new hedge fund later this year, less than 12 months after closing Diamondback Capital in the wake of an insider-trading investigation by the U.S. government. “The investment model at Sterling Ridge will focus on a single integrated portfolio that I will manage, similar to what I did in the main portfolio at Diamondback,” Schimel wrote in a letter to potential investors on Tuesday, a copy of which was obtained by Reuters.
Another investor may drop embattled hedge fund after prostitution arrest (Portland Business Journal)
Another major investor could soon bail on the giant hedge fund Common Sense Investment Management in the wake of the arrest of Common Sense CEO Jim Bisenius in a prostitution sting. The Business Journal obtained a confidential memo Portland wealth manager Arnerich Massena sent to clients after Bisenius’ arrest two weeks ago. In the memo, Arnerich Massena said it might end its two-decades-plus relationship with Common Sense as a result of Bisenius’ arrest and the hedge fund’s recent poor performance.
Marcato’s McGuire bets United Rentals will climb during recovery (GlobalPost)
Hedge fund manager Mick McGuire said on Tuesday that he is betting on backhoes and concrete mixers with a new investment in equipment rental company United Rentals, Inc. (NYSE:URI). McGuire’s Marcato Capital Management owns a 4.7 percent stake in United Rentals, and he expects fresh construction spending to give the company a big boost. Equally important is that contractors, still jittery after the recession, now appear more ready to rent than to own big equipment. “We are calling this renting the recovery,” McGuire said at the 9th annual Value Investing Congress in New York.
JIM CHANOS: These Are The Kinds Of Companies We’re Looking At Right Now (Business Insider)
Jim Chanos isn’t going to tell you exactly what he’s researching at his world renowned short-selling firm, Kynikos Associates, but he’ll give you an idea — a small one — of what he and his team are thinking about. He did that today on Bloomberg TV’s “Market Makers” with Erik Schatzker and Stephanie Ruhle. Chanos says he’s looking at large companies that are growing by making a lot of acquisitions.
Hedge fund manager sentenced to 63 months in federal prison (Palm Beach Post)
Hedge fund manager Paul D. Pomfret was sentenced last week to 63 months in federal prison and ordered to repay $1.6 million after pleading guilty to wire fraud. Pomfret, 49, owns a home in Palm Beach and ran the hedge fund PDP Capital. A former Penn State football player, Pomfret was indicted last year for defrauding a South Carolina businessman who invested $500,000.
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