Weavering Hedge Fund’s Peterson Gets 13-Year Jail Sentence (Bloomberg)
Weavering Capital (UK) Ltd. founder Magnus Peterson was sentenced on Friday to 13 years in prison, the first time a hedge-fund manager has been jailed in the U.K. for wrongdoing linked to collapses following the 2008 credit crisis. Peterson, 51, has been in custody since Monday when he was found guilty of fraud, forgery and furnishing false information by a London jury.
Citi FX Head Readies $500 Million Hedge Fund Launch In April (Reuters)
Former global head of foreign exchange at Citigroup, Anil Prasad, is preparing to launch his own macro hedge fund in early April with initial start-up capital of at least $500 million, three sources familiar with the matter said. Prasad could not be reached for comment. Silver Ridge Asset Management, which will have offices in London and New York, will have a multi-manager approach to trading led by Prasad, who left Citi in early 2014. Farhang Mehregani, also a former Citi executive, is joining Prasad in launching Silver Ridge Asset Management.
Swiss Franc Move Helps Man Group’s Computer-Driven Hedge Funds Gain (Reuters)
Man Group’s computer-driven hedge funds gained up to 5.7 percent through mid-January, party benefiting from the Swiss National Bank’s move to get rid of a cap on the franc that sent the Swiss currency soaring last week. Man’s $4.4 billion AHL Diversified fund gained 4.5 percent through Jan. 16 this year, while the $4 billion AHL Evolution fund returned 5.7 percent, according to fund performance data seen by Reuters.
Convicted Ex-Galleon Trader Loses Bail Bid (Reuters)
A former trader at the Galleon Group hedge fund lost his bid to be freed on bail while he challenges his conviction and 10-year prison sentence for insider trading related to two corporate mergers. In an order dated Friday, U.S. District Judge Richard Sullivan in Manhattan said Zvi Goffer failed to demonstrate a “substantial likelihood” that the challenge would succeed, or exceptional circumstances that would justify bail.
Denmark Ready to Dump Kroner on Market to Tame Hedge Funds (Bloomberg)
Denmark sent hedge funds and other speculators a clear message yesterday, daring them to test the full force of its monetary arsenal at their own peril. The central bank signaled it is ready to step up currency interventions and continue cutting rates to stamp out any lingering speculation it may be unable to defend its euro peg. “We have plenty of kroner,” Karsten Biltoft, head of communications at the central bank in Copenhagen, said in a phone interview. “We have the necessary tools in terms of interest-rate changes and interventions and we have a sufficient supply of Danish kroner.”
