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Debra Fine’s Fine Capital Partners Lost Big in MF Global Bankruptcy

Debra Fine’s Fine Capital Partners filed on November 10th for its loss in the bankruptcy of MF Global Holdings Ltd. (MF). The most recent SEC file showed Fine Capital Partners previously owned approximately 12.16 million shares in MF, or 7.4% activist stake. This is after the firm reported 8.06 million shares at the end of June. Based on Insider Monkey’s estimate, Fine Capital Partners probably lost around $75 million in this deal. On October 25th MF Global reported $191.6 million quarterly loss after the company lost $6 billion in European sovereign debt. Later Moody’s downgraded the company’s long-term bond to junk, and the company filed for bankruptcy on October 31th.

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MF was in twelve hedge funds in the second quarter. Eric Bannasch’s Cadian Capital took 10.18 million shares as MF’s largest hedge fund stakeholder. Beside Fine Capital’s second place, other hedge funds had smaller positions in the stock. Chuck Royce’s Royce & Associates had 765 thousand shares, and Ken Griffin’s Citadel Investment Group had 196 thousand shares.

According to Wall Street Journal, beside Fine Capital, several firms lost big in MF Global’s bankruptcy.

  1. Fidelity’s Pyramis Global Advisors, 13.9 million shares or 8.44% stake
  2. Guardian Life Insurance Co. of America, 12.9 million or 7.8% stake
  3. Cadian Capital Management, 10.2 million shares or 6.17% stake
  4. TIAA-CREF, 9.5 million shares or 5.77% stake.

Fine Capital Partners had $833 million invested in the market, Q2 filing shows. The firm put nearly half of the capital into financial sector. Also they had other large positions in Services, Technology, and Consumer Goods stocks.

MF Global Holdings Ltd. is a holding company. The company is a commodities and listed derivatives broker in the market. The Company provides access to more than 70 exchanges worldwide. MF Global also provides research and market commentary, as well as providing clearing and settlement services. MF Global Holdings Ltd. was founded in 1981 and is based in New York City, New York.

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