UBS Said to Face Fine in Rogue Trader Scandal (NYTimes)
UBS AG (NYSE:UBS) is expected to face a multimillion dollar fine in connection to the $2.3 billion trading loss caused by a former trader, Kweku M. Adoboli, according to two people with direct knowledge of the matter. The potential fine against the Swiss bank from British authorities may range between £30 million and £50 million, or $47 million to $80 million, and could be announced as early as next week, according to one person, who spoke on the condition of anonymity because he was not authorized to speak publicly.
MVIS launches six hedge fund beta indices (HedgeWeek)
Market Vectors Index Solutions (MVIS) has launched the Market Vectors Hedge Fund Beta Indices, a set of four regional and two global indices of long/short equity hedge funds. The regional long/short equity indices cover developed Asia, emerging markets, North America and Western Europe. The global indices cover global long/short equity and global event long/short equity.
Lone Star Files Arbitration Claim Against Korea (Chosun)
The U.S. hedge fund Lone Star, formerly the owner of Korea Exchange Bank, has filed investor-state dispute arbitration claims against the Korean government over losses it claims to have made in the sale of the bank. The latest installment in the epic saga is the first ISD lawsuit for the Korean government. The ISD mechanism allows foreign investors to request international arbitration against a government that has failed to live up to obligations under international investment treaties.
Argentina angry at hedge?fund court win (FT)
Argentina has angrily criticised a US court decision that has awarded hedge fund creditors more than $1.3bn as “a kind of legal colonialism”. “All we need now is for [Judge Thomas] Griesa to send us the Fifth Fleet,” Hernán Lorenzino, economy minister, said. The victory for several hedge funds against Argentina has sparked fears that the country could be plunged into yet another debilitating sovereign default and threatens to make government restructurings more difficult in the future.
Kensington announces the appointments of Eamonn Mcconnell and John H. Walker as Managing Directors (SacBee)
Kensington is pleased to announce that Eamonn McConnell and John H. Walker have joined Kensington Capital Partners Limited as Managing Directors. Mr. McConnell has lead responsibility for the Kensington Hedge Fund, while Mr. Walker leads Kensington’s infrastructure business. Together with current Kensington Managing Directors Tom Kennedy and Rick Nathan, Messrs. McConnell and Walker serve on the Kensington Investment Committee responsible for all investment decisions of the Kensington Funds. “We are excited to welcome two strong new partners to our Kensington leadership team,” said Tom Kennedy, “Eamonn and John each provide complementary perspectives to our investment decision making process.”
Brazilian hedge fund managers seek international investors (HedgeFundsReview)
Brazilian hedge fund managers are setting up offshore vehicles to attract international investors or service domestic clients looking to diversify their portfolios, according to a survey by DMS. There could be a 50% increase in Brazilian managers establishing offshore funds in 2013 as several factors combine to encourage the trend. The central bank interest rate in Brazil has fallen from 12.25% at the start of the year to 7.25%, prompting institutional investors in the country to find alternative investments. At the same time foreign investors are looking to Brazil as it raises capital to improve its infrastructure ahead of the World Cup in 2014 and the Olympics in 2016, explains Francine Balbina, DMS offshore executive director.
Scotiabank Canadian Hedge Fund Index ends October down 0.19% on asset weighted basis (-4.32% YTD) (Opalesque)
The Scotiabank Canadian Hedge Fund Index ended October 2012 down 0.19% on an asset weighted basis (-4.32% YTD) and up 0.12% on an equal weighted basis (-2.35% YTD). Description The aim of the Scotiabank Canadian Hedge Fund Index is to provide a comprehensive overview of the Canadian Hedge Fund universe. To achieve this, index returns are calculated using both an equal weighting and an asset-based weighting of the funds. The index includes both open and closed funds with a minimum AUM of C$15 million and at least a 12 month track record of returns, managed by Canadian-domiciled hedge fund managers.
Bharti tower arm sets India’s biggest IPO in 2 years for December 10 (Reuters)
Bharti Infratel Ltd, the telecommunications tower arm of India’s Bharti Airtel Ltd (BRTI.NS), is likely to launch its initial public offering to raise up to $900 million on December 10, sources said, in what will be the country’s biggest IPO in two years. …Four private equity investors, including arms of Singapore state investor Temasek TEM.UL and Goldman Sachs Group, Inc. (NYSE:GS), are selling shares in the offer. Hedge fund Eton Park‘s Anadale Ltd and a unit of Japan’s Nomura (8604.T) are also selling.
Australian tax office to pursue coal baron Tinkler (Reuters)
The Australian government was granted permission by a court on Friday to prepare legal action against coal baron Nathan Tinkler as creditors close in on the former billionaire, threatening to end a rags-to-riches story built on the nation’s mining boom. The New South Wales Supreme Court gave the Deputy Commissioner of Taxation leave to prepare a case against Tinkler’s holding company, the latest of a series of legal actions over unpaid bills and commercial disputes.
Who are PICC’s Cornerstone Investors? (WSJ)
Cornerstone investors are key to getting any initial public offering off the ground in Asia, particularly in these volatile markets. Luckily for People’s Insurance Co. (Group) of China Ltd., its up to $3.6 billion IPO has managed to secure an impressive list of cornerstone investors, not least a commitment of $500 million from American International Group Inc.
Banned on Wall St.: Facebook, Twitter and Gmail (NYTimes)
For young Wall Street employees who live their lives through social media, working at a big bank can feel as if the plug has been pulled. Most financial firms ban Facebook Inc (NASDAQ:FB), Twitter and Gmail, and block most music and video streaming sites. Working on Wall Street is “a full life commitment, and without access to social media or personal e-mail it can often feel like nothing exists outside of work,” said one JPMorgan Chase analyst who spoke on condition that he not be named because he is not allowed to talk to the news media.
I-bank AGacquisitions to launch hedge fund; focus on index strategy (VCCircle)
Bangalore-based boutique investment bank AGacquisitions India is foraying into the alternative investment market by launching a new hedge fund, with the focus on index strategy for Indian markets. The fund will later operate in Singapore and the US as well. This new business, to be housed under its subsidiary AGacquisitions Markets, will register with the market regulator SEBI as a hedge fund under AIF (Alternative Investment Funds) Regulations by the first quarter of CY2013.
Record insider trading case hits pharma industry (RSC)
The pharma industry has become the backdrop for what might be the biggest insider trading case in US history – a $276 million (£173 million) charge relating to bad trial results for Alzheimer’s disease drug candidate bapineuzumab. …He was allegedly tipped off by Sidney Gilman, a neurology professor at the University of Michigan and chairman of the safety monitoring committee overseeing the trial, shortly before the data were made public. The data showed that the side effects of the candidate were worse than expected.
S.E.C. Weighs Suing Aletheia Manager (NYTimes)
Federal regulators are preparing a civil fraud case against a prominent Los Angeles money manager, a government lawyer said at a court hearing on Wednesday. The manager, Peter J. Eichler Jr., chief executive of Aletheia Research and Management, has received a so-called Wells notice from the Securities and Exchange Commission, an indication that the agency is considering an enforcement action.
Three New Yorkers thankful for organs donated by hedge-fund manager (NYPost)
They have nothing in common, but they’re all thankful for the same thing today — a generous man who donated his organs. Three New Yorkers — a chief detective, a hip-hop producer and an insurance adjuster — received the desperately needed organs from hedge-fund manager Christophe Arroyo, a 39-year-old father of two who died of a brain aneurysm last year while running a half-marathon. All three had a tearful first meeting with Arroyo’s beautiful widow, Yovanka Bylander Arroyo, this week to show their appreciation.
Roubini warns Argentina is heading for a highly vulnerable “State capitalism” (MercoPress)
“Argentina has moved away from market oriented policies with imports substitution protectionist measures; national control over natural resources; a more predominant role for state companies and banks and discouraging foreign investments and the influx of capital” said the economist who was especially invited to the annual convention of the Argentine Chamber of Construction in Buenos Aires. “These policies have a negative impact for investors and consumers’ confidence, which on the long run has its influence on growth”. Roubini who is a professor at the New York Leonard Stern School of Business warned that Argentina is heading towards “a State capitalism” which could make the country “more vulnerable to domestic and external shocks”