Hedge Fund News: Cliff Asness, David Tepper & Brevan Howard

Page 1 of 2

Slow Your Judgments on Fast Trading (BloombergView)
In a recent pair of articles (part I, part II), hedge-fund magnate Cliff Asness defended high-frequency trading against most of the attacks that have been leveled against it. Asness is known for his strong opinions. And while I’m generally on his side in this case, a careful reading of his articles shows that he may have overstated his case and we shouldn’t be so quick to conclude that HFT is completely benign. A lot of people claim that HFT is legalized front running, allowing traders to improperly buy or sell ahead of customers. Asness defends HFT from this claim by narrowing the definition of front running; he insists that if you don’t trade on information that was entrusted to you, you aren’t really front running:..

AQR CAPITAL MANAGEMENT

IRS Backs Investors Seeking Change to Hedge Fund Fees (BusinessWeek)
The U.S. Internal Revenue Service issued a ruling that clears the way for institutional investors to seek changes to incentive fees assessed by hedge funds, which may make it cheaper for them to invest in such offerings. The ruling, 2014-18, clarifies that hedge funds can charge incentive fees cumulatively rather than annually without running afoul of a tax law change adopted in 2008. These fees, typically equaling 15 to 20 percent of an investor’s profits, comprise a big portion of a hedge fund manager’s annual revenue.

Gupta Asks Supreme Court to Allow Him to Remain Free During Appeal (WSJ)
Former Goldman Sachs Group, Inc. (NYSE:GS) director Rajat Gupta on Tuesday asked the Supreme Court to allow him to remain free on bail while he continues to challenge his 2012 insider-trading conviction. If the high court doesn’t continue Mr. Gupta’s bail, he will be required to report to prison June 17. Mr. Gupta, a former director at Goldman and The Procter & Gamble Company (NYSE:PG) +0.07%, was convicted on three securities-fraud counts and one count of conspiring to pass along inside info to Galleon Group hedge-fund founder Raj Rajaratnam. Mr. Gupta was sentenced to two years in prison. Mr. Rajaratnam is serving an 11-year prison sentence and has his own appeal pending at the Supreme Court.

World’s highest-paid hedge fund manager worth $10 billion ‘splits from his wife of 28 years’ (DailyMail)
The world’s highest-paid hedge fund manager – who is worth an estimated $10 billion – has split from his wife, friends have revealed. David Tepper, 56, and his wife, Marlene, 55, have not yet formally filed for divorce but have separated and are telling friends that the marriage ‘has run its course’, a source told PageSix. ‘They hope to settle things quickly, quietly and amicably,’ the source said. The head of $20 billion Appaloosa Management is worth an estimated $10 billion and made $3.5 billion in 2013 alone – meaning that divorce proceedings could reach eye-watering sums.

Lovell Minnick Partners acquires minority stake in 361 Capital (PIOnline)
Lovell Minnick Partners, a private equity firm, is taking a minority stake in hedge fund manager 361 Capital, said W. Bradford Armstrong, principal with Lovell Minnick Partners. Financial terms and the size of the stake are not being disclosed. “Lovell Minnick Partners’ interest in 361 Capital is based on a combination of an excellent management team and a significant opportunity in developing liquid alternatives products for registered investment advisers and other investors,” said Jeffrey Lovell, chairman of Lovell Minnick Partners.

Sen. Warren: Students should not be financing government (CNBC)

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!