Dan Loeb's Third Point hedge fund makes $500m profit from Greek bonds (Telegraph) Mr Loeb has reportedly sold a large part of a $1bn position in Greek debt that soared in value in the wake of the buy-back deal unveiled by Athens on Monday. The trade will stand out as one of the most audacious bets on the eurozone debt crisis so far. Since its onslaught in 2009, the turmoil has wrong-footed financiers around the world. It also affirms Mr Dan Loeb’s position as one of the most successful hedge fund managers, particularly since the rest of his high-rolling industry has struggled to make returns all year.
Greenbrier rejects Icahn's $543 million offer as not good enough (III) U.S. railcar maker Greenbrier Companies Inc (NYSE:GBX) has rejected a $543 million (333.8 million pounds) bid from American Railcar Industries, Inc. (NASDAQ:ARII) which is controlled by activist investor Carl Icahn, saying the offer grossly undervalues the company. But Greenbrier said it remains ready and willing to continue discussions with Icahn, saying it believes that combining the two companies would offer substantial synergies and be beneficial to shareholders of both firms. American Railcar on Tuesday offered $20 per share for Greenbrier, reviving a nearly five-year old plan to combine the companies.
Citi secures hedge fund depository, custody and prime brokerage mandate (HedgeWeek) Citi has been awarded a mandate from Brummer & Partners, Sweden's largest hedge fund manager, to provide depositary, custody and prime brokerage services for its recently-launched Carve fund. “We are delighted to appoint Citi for our new Carve funds,” says Peter Thelin, chief executive and portfolio manager at Carve Capital. “Citi’s local presence, proprietary global sub-custody network and its ability to offer a multi prime brokerage model for Swedish investment funds, putting Sweden in line with the rest of Europe, have been important factors in our decision.”
Pension fund fires 1st shot in war against guns (OnlineSentinel) The first sign that the Sandy Hook Elementary School massacre has changed the way we talk about guns in this country came from an unlikely place -- Wall Street. Cerebrus Capital Management, a private equity firm and hedge fund, announced that it would immediately divest its ownership of the Freedom Group, a conglomeration of gun manufacturers including the maker of the Bushmaster rifle believed to be used to gun down 20 first-graders and six adults last week.
Wells Fargo acquires 35% stake in hedge fund firm (StarTribune) Wells Fargo & Company (NYSE:WFC) has taken a 35 percent stake in The Rock Creek Group, a fund-of-hedge-funds company in Washington, D.C., as the nation's No. 4 bank works to double its asset-management unit. Rock Creek, which has about $7 billion in assets under management and 50 employees, designs and implements customized funds of hedge funds and emerging market portfolios for institutional clients using proprietary analytics. The company was founded in 2002 by former World Bank treasurer and chief financial officer Afsaneh Beschloss. Beschloss was instrumental in developing the World Bank's portfolio of alternative investments and private equity, according to Wells Fargo.
Insider Verdicts Likely To Propel SAC Case (WSJ) A guilty verdict against two hedge-fund managers for insider trading might enable prosecutors to get a step closer to SAC Capital Advisors LP founder Steven A. Cohen, lawyers and others familiar with the case said. Federal prosecutors in Manhattan and the Federal Bureau of Investigation will now train their sights on Michael Steinberg, a 15-year SAC portfolio manager who is close to Mr. Cohen. Prosecutors have alleged Mr. Steinberg traded based on the same inside information as Anthony Chiasson and Todd Newman, the managers at two other hedge funds convicted Monday afternoon after a trial, people familiar with the case said.