Halcon Resources Corp (HK): Billionaire Ken Griffin’s Citadel Bought More (Insider Monkey)
Citadel Investment Group, a large hedge fund managed by billionaire Ken Griffin, now owns over 18 million shares of Halcon Resources Corp (NYSE:HK) according to a filing with the SEC. Halcon is an oil and gas exploration and production company with a focus on U.S. shale plays including the Bakken, Eagle Ford, and Utica. Halcon Resources Corp’s operating revenues more than doubled last year compared to 2011, but production costs were up as well and SGA expenses grew at a very fast rate. As a result, the company actually reported an operating loss for 2012 compared to operating profits of $20 million the year before. In terms of cash flow, however, the story was better: depreciation accounts for all of Halcon Resources Corp (NYSE:HK)’s net losses, and cash flow from operations soared to almost $120 million in 2012.
Hedge fund to pay $21.5 million to settle SEC charges (Futures Magazine)
The Securities and Exchange Commission today announced that Greenwich, Conn.-based hedge fund advisory firm Level Global Investors LP has agreed to pay more than $21.5 million to settle charges that its co-founder, who also served as a portfolio manager, and its analyst engaged in repeated insider trading in the securities of Dell Inc. and Nvidia Corp. In January 2012, the SEC filed insider trading charges against Level Global, the firm’s co-founder Anthony Chiasson, a former analyst Spyridon “Sam” Adondakis, and six other defendants, including five investment professionals and the hedge fund advisory firm Diamondback Capital Management.
Ramius, Conning partner on custom hedge fund replication (Pensions & Investments)
Conning and Ramius Alternative Solutions have entered into a strategic alliance to develop customized alternative investment strategies for insurance companies. The firms will customize strategies traditionally used by hedge funds to enhance the risk-adjusted returns of insurance portfolios. Hedge funds have traditionally posed a number of problems for insurance companies such as lack of transparency, high capital charges, unattractive liquidity and high fees, said Woody Bradford, president and CEO of Conning, an investment manager for insurance companies.
Hong Kong-based Richland to shut hedge funds in surprise move (Reuters)
Hong Kong-based Richland Capital Management Ltd is shutting down its hedge funds despite outperforming peers, four sources said, an unexpected move for a successful operator in an Asian industry which is struggling to raise assets. Richland is one of Asia’s best-known hedge funds. It manages $100 million between two funds and advises on an additional $150 million for wealthy clients, according to a fund information document obtained by Reuters.
Paulson Reinsurer Lags Peers in Sales in First Year (Bloomberg)
Billionaire John Paulson’s Bermuda venture, which positions its owners to avoid taxes on hedge fund earnings by routing money through a reinsurer, sold about 3 percent as much coverage as competitors in its first year. Pacre Ltd., set up by top executives at Paulson’s New York hedge fund firm, collected about $11 million of premiums in the year ended March 31, or 2.3 percent of shareholders’ equity, according to results released last week. The average ratio for 13 publicly traded Bermuda reinsurers is about 68 percent. Hedge fund insurers are gaining in popularity…