Long known for pushing companies to take actions to increase or unlock value, Carl Icahn is delivering a bit more to his own shareholders. Icahn Enterprises, the billionaire’s publicly-listed investment vehicle, will up its annual distribution to $4.00 per depositary unit, payable in cash or additional shares, from a prior payout of 40 cents in cash and $1.00 in additional shares. …Monday’s announcement was just the latest development to put Icahn’s name in the spotlight this year. The activist – who invests for himself after returning all fee-paying capital in the spring of 2011 – made a sizable bet on Netflix, Inc. (NASDAQ:NFLX) late last year that has profited handsomely and is believed to have a long position in Herbalife Ltd. (NYSE:HLF).
Norwatt Leads Power Fund Rout as Nordic Price Trends Ease (BusinessWeek)
Almost every hedge fund specializing in Nordic power posted losses last year as surplus water for generating energy kept prices oscillating in a narrow range, confounding expectations for a steady retreat. Energy Invest and Power Focused, run by Gjoevik, Norway- based Norwatt AS, slid 17 percent and 15 percent respectively, the most among eight funds with at least $157 million invested in Nordic electricity. Seven of the eight posted negative returns, generating a median loss of 11 percent, compared with gains of 0.8 percent in 2011 and 13 percent in 2010, according to a survey of managers by Bloomberg.
Brussels takes aim at fund pay (CityAM)
EUROPEAN authorities have unveiled strict plans to curb the pay of London’s alternative fund managers, in a move which could see their compensation treated in the same way as that of bankers. The proposals, laid down by the European Securities and Markets Authority (Esma) yesterday, target the bonuses of senior executives at hedge funds and private equity funds to bring pay controls in-line with the increasingly stringent remuneration policies of City banks.
New York fund manager arrested on Ponzi scheme charges (III)
A New York fund manager was arrested on Monday on charges of orchestrating a Ponzi scheme and stealing around $2 million from three hedge fund investors, U.S. authorities said. Federal prosecutors charged Jason Konior, 39, with defrauding investors by promising to match their investments in his fund, Absolute Fund LP, many times over. Prosecutors said he used $2 million of the money he collected from three hedge funds to pay his own expenses and to cover redemption requests from prior investors, according to the criminal complaint dated February 7. Konior’s lawyer Douglas Jensen of the law firm Park & Jensen LLP had no comment on the case when contacted by Reuters.
Agrium-Jana Feud Heats Up (FoxBusiness)
Fertilizer maker Agrium Inc. (NYSE:AGU) named two directors to its board and said it held discussions with Jana Partners LLC to resolve a proxy battle with its largest shareholder, but those talks ended after Jana rejected a proposed settlement. Agrium is in the midst of a battle with U.S. hedge-fund Jana Partners, which in late November proposed a slate of five new directors for election to Agrium’s board. Jana has also pressured the fertilizer maker to spin off its retail business that sells seed and other crop inputs to farmers. Agrium has said it doesn’t believe a spinoff would be in the best interests of its shareholders.
NML May Demand Information From Argentina’s National Bank (BusinessWeek)
A hedge fund that holds defaulted Argentine bonds won approval from a federal judge in New York to demand information about the nation’s assets worldwide from Banco de la Nacion Argentina, to help it understand Argentina’s “financial circulatory system.” U.S. District Judge Thomas Griesa said Elliott Management Corp.’s NML Capital may go forward with a subpoena requiring BNA to produce documents “relating to any assets or accounts maintained at BNA by Argentina or for Argentina’s benefit, any debts owed by BNA to Argentina and transfers into or out of Argentina’s accounts” as part of NML’s attempts to seize assets to pay what it’s owed on the bonds.
Olympic Gold-Winning Swimmer Joins Andurand (Finalternatives)
From swimming pools to pooled investments: Olympic gold medal-winning swimmer Clement Lefert has joined hedge fund Andurand Capital Management as an intern. Pierre Andurand, founder of the oil and commodities hedge fund and a former member of the French junior national swim team, confirmed the addition of Lefert to Bloomberg. Lefert will start as an analyst in May with the goal of becoming a trader, said Andurand. The 25-year-old Lefert was part of the French 4X100 meter freestyle relay team that won gold at the London Summer Olympics. He as an economics degree of USC and a master of finance from the Ecole des Hautes Etudes Commerciales du Nord.
