James Dinan’s York Fared Well in the First Half (InstitutionalInvestorsAlpha)
James Dinan‘s New York-based hedge fund firm, York Capital Management, got off to a strong start this year, making it perhaps the best-performing multistrategy firm in the first half of 2014, thanks to gains in its special situations positions, among others. Its York Investment fund is up 12.1 percent through the first six months of the year after gaining 5.5 percent in the second quarter. The firm’s York Credit Opportunities fund is faring even better, posting a 12.8 percent gain for the year. York declined to comment on the results. And it is unclear whether the funds…
No Early Release For Ailing Israel (Finalternatives)
When she sentenced hedge fund fraudster Samuel Israel to 20 years in prison six years ago, U.S. District Judge Colleen McMahon knew exactly what she was doing—and she isn’t having doubts. McMahon has rejected Israel’s bid for an early release from the 22 years she sentenced him to—the extra two years were for bail-jumping. Israel argued that the Federal Bureau of Prisons wasn’t adequately treating his medical ailments and that he suffered a “near-death experience.”
Hedge funds increase short exposure (GlobalInvestorMagazine)
Aggregate hedge fund performance was negative at -0.35% in a volatile July, making it the industry’s fourth month of losses in 2014. This dropped year-to-date returns to 2.62%, according to eVestment. There was second consecutive month rise of short exposure heading into July. Median short exposure had been near its five-year low through much of 2013, but has since risen to its highest level since February 2010.
Third Point’s Loeb Cost Sotheby’s $24 Million in Fight (Bloomberg)
Fighting with billionaire activist hedge-fund investor Daniel Loeb can get expensive. A proxy battle cost Sothebys (NYSE:BID) $24.3 million in the first half of this year, the New York-based auction house said today as it reported second-quarter earnings. The amount is larger than the $22 million expense reduction the company announced earlier this year. The fight ended in May when Sotheby’s appointed Loeb to its board. Sotheby’s said it incurred the charges for advisory, legal and other fees associated with the proxy contest. Second-quarter profit fell 15 percent on higher tax expenses, Sotheby’s said in a statement.
Madoff trustee cannot void Merkin, Fairfield settlements -court (Reuters)
In a setback for the trustee seeking money for the former customers of imprisoned fraudster Bernard Madoff, an appeals court refused to void two settlements benefiting investors who sued “feeder funds” that sent their money to Madoff. Friday’s unanimous decision by a three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York leaves intact a $410 million settlement with J. Ezra Merkin, a Wall Street hedge fund manager who oversaw the Ariel Fund Ltd and Gabriel Capital LP, and an $80 million settlement with Fairfield Greenwich Ltd.