Hedge Fund News: Paul Singer, David Tepper, Citigroup Inc. (C)

Goldman Bullish With Hedge Funds Amid Citi Warning (Bloomberg)
Investors almost doubled purchases of commodities this year, at a time when Goldman Sachs Group, Inc. (NYSE:GS) and Morgan Stanley are forecasting higher prices and Citigroup Inc. (NYSE:C) says the best returns are over. Money invested in commodity funds increased by $21.6 billion this year, up 92 percent from the gain in 2011, according to Cambridge, Massachusetts-based EPFR Global, which tracks the flows. Hedge funds’ bets on a rally are 51 percent bigger than a year ago, U.S. government data show. Precious metals will lead returns in 2013, rising as much as 25 percent, as grains advance 18 percent and industrial metals 16 percent, according to a Bloomberg survey of 131 traders, investors and analysts across 15 raw materials.

World’s Most Expensive Office Now Somewhat Less Expensive (DealBreaker)
The market for literally palatial office space does not appear to have recovered. Take poor Zimmer Lucas Capital, a New York hedge fund that bought itself a five-story West 54th Street townhouse—formerly owned by a Lehman brother—in 2005. In May, ZLC listed the place for $65 million, or almost $4,000 per square foot. But with no takers seven months later, it’s looking for bargain hunters.

Paulson, Griffin, DiMenna Keep Ballerinas on Their Toes (BusinessWeek)
As the year closes, Scene Last Night takes a look at the causes that people in finance tend to cluster around. Today: The Hedge Funder Balletomanes. …Naturally the Paulsons help the ballet raise money, as do many families with hedge-fund pedigree. Lisa Falcone, wife of Philip A. Falcone, is on the board of New York City Ballet. William Ackman, of Pershing Square Capital Management, and Kinga Lampert, wife of Edward Lampert of ESL Partners LP, are on the board of American Friends of the Paris Opera & Ballet, whose dance company had a U.S. tour this past summer.

Hedge Funder Dan Benton Buys $39 M. Penthouse at 730 Park (Observer)
Psst… do you want to hear a secret? The whisper listing at 730 Park Avenue, a 12-room duplex penthouse with Central Park views, has sold to hedge fund titan Daniel Benton for a whopping $39 million, according to city records. Mr. Benton, who recently re-opened his technology-based hedge fund Andor Capital Management, is apparently feeling financially confident enough to move up in the world. Literally. Mr. Benton and wife Anna currently own another 12-room duplex on a lower floor of the same building that they paid $21 million for back in 2007. We guess they were a shoe-in with the board?