Hedge Fund News: Eddie Lampert, Phil Falcone, The Blackstone Group L.P. (BX)

Page 1 of 2

Editor’s Note: Related tickers: The Blackstone Group L.P. (NYSE:BX), Sears Holdings Corporation (NASDAQ:SHLD), Morgan Stanley (NYSE:MS), Fortress Investment Group LLC (NYSE:FIG)

ESL INVESTMENTSPaul Krugman Tells Hedge Fund Manager Eddie Lampert How A Business Is Supposed To Work (BusinessInsider)
Rather than having his various divisions work together for the mutual benefit of the company, Sears Holdings Corporation (NASDAQ:SHLD) CEO Eddie Lampert turned the company into a series of warring fiefdoms fighting for money and attention, inspired in part by his fondness for libertarian icon Ayn Rand. In a blog post, Paul Krugman points out the major issue with the strategy: “If the different divisions of Sears Holdings Corporation (NASDAQ:SHLD) have no common interests, if the best model is competition red in tooth and claw, why should Sears Holdings Corporation (NASDAQ:SHLD) exist at all? Why not just break it up into units that have no reason not to compete?”

Falcone L’Squared option flits away (NYPost)
It’s official: Bankrupt LightSquared is up for grabs. As The Post predicted last week, hedge fund billionaire Phil Falcone — LightSquared’s founder and largest investor — missed a deadline yesterday to file a reorganization plan for the wireless venture. In court papers, Falcone has asked the bankruptcy court to give his Harbinger Capital hedge fund more time to get a plan together. He had until July 15 to exclusively hash out a deal with LightSquared’s creditors. The first of several hearings on the issue is slated for tomorrow.

Blackstone selects Nephila Capital as a sub-advisor for new mutual fund (Artemis)
Insurance-linked securities and reinsurance-linked investment manager Nephila Capital, the largest asset manager in the space with just over $7.89 billion of insurance-linked assets under management at the firm, has been selected as one of the sub-advisors for a new mutual multi-manager fund offering from The Blackstone Group L.P. (NYSE:BX) Alternative Asset Management. The Blackstone Group L.P. (NYSE:BX) Alternative Asset Management, the hedge fund solutions group of The Blackstone Group L.P. (NYSE:BX), is launching its first alternative investments focused mutual fund which offers daily liquidity to investors. BAAM has $49 billion under management and has developed this new mutual fund offering by partnering with some of the best managers in the alternative asset class space.

Kazarian Emerges After 20 Years With Bid for 10% of Greek Debt (Bloomberg)
Millionaire investor Paul Kazarian is ready to be noticed again. Days after his Japonica Partners & Co. announced on June 3 an offer to buy as much as 2.9 billion euros ($3.8 billion) of Greek government debt, about 10 percent of all outstanding bonds, Kazarian sat on a bike in the gym at the Grande Bretagne in Athens, a hotel favored by hedge-fund managers and overseas investors scouring Europe’s worst-performing economy for distressed assets. Kazarian, 57, wore a t-shirt plastered with the Japonica logo and slogans including “delta force” and “catalyst to create extraordinary value,” according to people who saw him. He put an inch-wide spiral bound presentation covered with the same logo on the bike next to his, placed beside the gym entrance in full view of anyone walking in.

Bayou Hedge Fund Victims Get $31 Million in Forfeited Assets (Lawfuel)
Preet Bharara, the United States Attorney for the Southern District of New York announced that today the Clerk of the Court distributed $31,788,917.44 in proceeds from forfeited assets to victims of the fraud committed at the Bayou hedge funds. The forfeited assets include approximately $2 million seized from a bank account in Singapore and $1 million seized from a bank account in the United Kingdom. This brings the total value of the forfeited assets distributed to Bayou fraud victims to over $128 million. U.S. Attorney Bharara stated: “We are dedicated to using forfeiture to compensate victims for their losses whenever possible. This return of money to Bayou fraud victims underscores the power and flexibility of forfeiture as a tool to help victims of major financial crimes.

Sunofia Capital Readies Market Neutral Hedge Fund Strategy (Finalternatives)
Asset management firm Sunofia Capital Management is gearing up to launch a market neutral hedge fund strategy. The strategy, which will be managed by Moustapha Awada, will initially invest in European and Japanese liquid equities and will subsequently add liquid North American and global stocks. Awada has over 17 years of trading, portfolio and risk management experience. Previously, he was a managing director and global head of the multi-asset systematic trading group at Dresdner Bank.

Asia – China big bears attracting more hedge fund shortsellers (Opalesque)
Among hedge funds, Chinese growth outlook and its ramifications has been a consistent theme. From prescient investors like Jim Chanos to newbies like Patrick Wolff of Grandmaster Capital, a doom in China has been predicted over and over again. The best bets against Chinese equities would be those that took shape when most of the market players were in denial of the dark times that laid ahead and valuations remained high. When it comes to China, the interesting thing is that while every hedge fund manager will say that China is on the road to hit rock-bottom, there are very few who have established direct shorts in the country or very few who share their portfolio exposure.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!