Cohen’s SAC Capital Faces Second Probe (WSJ)
U.S. securities regulators are examining whether SAC Capital Advisors LP
improperly profited from trades made before a health-care takeover was announced, the second such deal drawing scrutiny to the hedge fund, according to people familiar with the matter. The Securities and Exchange Commission is trying to determine whether SAC used inside information to profit from Johnson & Johnson’s
2009 takeover of Cougar Biotechnology Inc., the people said. The civil inquiry also encompasses whether an “expert network” business that is part of an investment bank leaked nonpublic information to traders, the people said.
Founder of Weavering Capital Accused of Hedge Fund Fraud (FT)
The founder of Weavering Capital (UK), one of London’s oldest hedge fund managers which collapsed in 2009, was the “chief architect of a $600m (£380m) hedge fund fraud” the High Court was told on Monday. MCR, the joint liquidators of Weavering, began a civil lawsuit against Magnus Peterson, the founder and chief executive of the hedge fund, and against other former employees including Mr Peterson’s wife Amanda, a former director of Weavering who is facing claims that she breached her duty as a director.
Northstar Pacific Raises Largest Indonesia Fund (FT)
Northstar Pacific Partners, the Indonesian private equity firm backed by TPG
, has raised the biggest fund to invest in Indonesia, attracting $820m from investors looking to tap strong growth in south-east Asia’s largest economy. Investors were found within just four months to back Northstar Equity Partners III – much more quickly than the two years it took to raise two prior Indonesian funds worth $110m and $280m, respectively, according to an executive involved in the fundraising process.
Atlanta-based alternative asset manager Aspen Partners has launched a managed futures fund with a little help from Nomura International which provided an initial investment of $20 million in August 2011. The Aspen Managed Futures Strategy Fund is based on the Managed Futures Beta Index, a systematic proxy for returns in the managed futures industry.
Man Group Looks to the US (NYTimes)
Founded 230 years ago near the banks of the Thames, the Man Group has transformed itself from a British barrel maker to a rum merchant to a $70 billion money manager dominant in Europe and Asia. Now the company, the world’s largest publicly traded hedge fund, is looking to conquer the United States, the world’s largest hedge fund market. To attract American investors, the firm is expanding its product lineup, building up its local sales force and striking distribution deals with brokerage houses like Morgan Stanley. The domestic team, once scattered between three offices in New York, is also consolidating its operations in a newly renovated building on the edge of Bryant Park in Manhattan.
Blackstone Names Paul Costello Chairman for Australia and New Zealand (FINAlternatives)
The Blackstone Group
has tapped Paul Costello as non-executive chairman for Australia and New Zealand. In his new role, Costello will help guide the firm’s development in the region and represent the Firm with its key constituencies there. Costello was most recently general manager of Australia’s Future Fund. He will report to Tony James, Blackstone’s president and Michael Chae, who heads private equity for the firm in Asia-Pacific and is also responsible for the firm’s limited partner relationships in the region.
Tiger Asia’s Bill Hwang on the Comeback (InstitutionalInvestor)
Bill Hwang’s Tiger Asia is solidly in the black after a stunning 8.8 percent net gain in September. This lifted the tiger Seed to an 8.6 percent positive return for the year through nine months. Hwang’s profitable year caps a spectacular turnaround from earlier this year, when he was down nearly 30 percent. He was up 10.9 percent in August. Remember that in September, the S&P 500 dropped 7 percent while two other key indices that the hedge fund tracks fared much worse; the Hang Seng Composite Index is down 26 percent for the year while the Shanghai Composite Index is off 16 percent.
Klarman’s Baupost Could Be Seeking Cash from Existing Investors (InstitutionalInvestor)
Seth Klarman’s Baupost might soon be looking to raise some cash. The super-secretive hedge fund manager, known for his conservative, measured investing approach, is considering asking his existing investors to give back some of the cash he returned earlier in the year, according to a knowledgeable source. The source says Klarman is definitely not soliciting outside money, as he did for a short while several years ago.