Lone Pine Tells Clients Loss Stemmed from Sins of Omission (InstitutionalInvestorsAlpha)
Stephen Mandel Jr.‘s Lone Pine Capital, which lost between 1 percent and 3 percent in its funds in the first half, does not apologize or second-guess its decisions. Why should it? The Greenwich, Connecticut-based hedge fund, possibly the most successful Tiger Cub of them all, tells clients its mistakes this year “have largely been ones of omission, not commission.” The Greenwich, Connecticut-based hedge fund, possibly the most successful Tiger Cub of them all, tells clients its mistakes this year “have largely been ones of omission, not commission.”
Darden Offers Olive Branch Amidst Bruising Hedge Fund Battle (Finalternatives)
Having completed a deal that they so bitterly opposed, Darden Restaurants, Inc. (NYSE:DRI) yesterday moved to mollify the hedge funds seeking to take control of the company. Darden CEO Clarence Otis, the focus of some of the most virulent attacks by Starboard Value and Barington Capital Group, announced that he would step down as CEO by the end of the year. In addition, he will not stand for reelection to the board. Nor will two other current directors. Darden said it plans to nominate only nine director candidates for the 12-member board, ensuring that at least three of the candidates nominated by Starboard will be elected. In addition, the firm said lead independent director Charles Ledsinger would succeed Otis as chairman.
Hedge Fund Prosecution Specialist Mark Berger Joins NY Law Firm (HedgeCo)
The Chief of the Securities and Commodities Fraud Task Force and the prosecutor who took down Raj Rajaratnam, the billionaire head of the Galleon Group hedge fund, has joined NY law firm Ropes & Gray. Marc P. Berger, who helped lead the Southern District of New York’s high-profile crackdown on insider trading and numerous other corporate and financial fraud cases including hedge fund SAC Capital, is currently Chief of the Securities and Commodities Fraud Task Force in the U.S. Attorney’s Office for the Southern District of New York. He will join Ropes & Gray’s Government Enforcement practice as a partner this month.
Hedge Fund, Founder Cleared In Madoff Feeder Fund Suit (Finalternatives)
A hedge fund founded by a former top Merrill Lynch executive isn’t on the hook for losses suffered by two clients in the Bernard Madoff scandal. A federal jury in Maine last week cleared Spring Mountain Capital and its founder, John Steffens, a former Merrill Lynch vice chairman. Steffens and his hedge fund were accused of encouraging Daniel Goldenson and his wife to invest with Madoff feeder fund manager J. Ezra Merkin, an investment that cost the couple up to $4.8 million.
Hedge Fund Lakewood Bets on Tetragon Greed as CLOs Jump (BusinessWeek)
Anthony Bozza is counting on the greed of a debt investor almost left for dead in the financial crisis to make money for his hedge fund. The founder of $2.8 billion Lakewood Capital Management LP has added to its stake in Tetragon Financial Group Ltd. (TFG), a publicly-traded company that owns the riskiest parts of leveraged loan funds, according to a letter sent to investors last week. The stock, which trades at about $10, or 40 percent below the value of its holdings, could double if the assets perform as expected and the company buys stock at discounted prices, the New York-based firm wrote.
Third Point LLC Briefly Reopening to More Money (WSJ)
Third Point LLC is briefly reopening to more money as founder Daniel Loeb sees more investment opportunities, according to people familiar with the matter. Third Point told investors last fall it would return a 10th of the $14 billion it managed to help ensure the firm could continue producing outsize returns. The New York hedge-fund firm, which now manages $15 billion after recent investment gains, plans to accept more money in its flagship fund through Oct. 1 to pursue specific investments, Mr. Loeb told investors in a quarterly conference call Tuesday…