Fonclare Steps Back from Managing Jupiter Fund as Part of Wider Merger Plans (CityWire)
Citywire A-rated manager Cedric de Fonclare has stepped back from management of the Jupiter European Absolute Return fund as part of wider merger plans. The move comes after Jupiter received shareholder approval to merge the offshore Jupiter Europa hedge fund with the Luxembourg-domiciled absolute return fund. The new offering will bear the Jupiter Europa name but operate within the Ucits framework. The investment policy and charging structure of the original hedge fund will be used for the newly formed fund. And, once the transfer of assets to the new vehicle is completed the hedge fund will be formally closed. De Fonclare has been at the helm of the fund since it’s launch in January 2010 alongside co-manager Stuart Pearson, who will now take over lead management of the merged fund. He will be assisted by Michael Buhl-Nielsen.
New York Mets Wilpon Seeks Investors to Offset Failed $200M Einhorn Deal (ESPN)
Chief operating officer Jeff Wilpon said Monday that the sale of small blocks of the team to minority investors is “going very well,” but he declined to offer any specifics about the progress. The Wilpons are seeking multiple small shareholders to offset the loss of the planned $200 million minority investment from David Einhorn, which fell through Sept. 1. Team sources previously told ESPNNewYork.com the Mets were looking to sell shares in varying amounts in the neighborhood of $15 million to $20 million apiece with the hope of raising in the vicinity of what Einhorn planned to invest.
Cadian Capital Management Bet Wrong on MF Global (WSJ)
Hedge-fund Cadian Capital Management was one of MF Global’s biggest stockholders, even as it sold millions of shares in the last week as the company was on the path to a bankruptcy filing. According to an SEC filing just released, Cadian Capital funds sold more than 7.7 million MF Global common shares on Oct. 27 and Oct. 28. MF Global’s stock is likely to be worthless now that the company has filed for bankruptcy protection.
Ex-Renaissance Technologies Manager Glen Whitney Starts Math Museum (Businessweek)
As a devout numbers geek, Glen Whitney was bothered that the cultural landscape offered no museum celebrating the field of mathematics. So he left his job as an algorithms specialist and manager at Renaissance Technologies LLC, a quantitative hedge fund started by Jim Simons, and created the nonprofit Museum of Mathematics. This year, he found a 19,000-square-foot space on East 26th Street in Manhattan and plans to open the doors in 2012. “I started this museum because I wanted people to have a chance to see the beauty, excitement and wonder of mathematics,” said Whitney, 42, speaking in the empty space under construction.
MF Global Bankruptcy Hits Australian Commodities Market (FT)
ASX, the Australian exchange operator, has shut down the country’s agricultural commodities market after the collapse of MF Global, highlighting the impact that the bankruptcy of the US-based broker is having on futures markets.
The exchange said it took the decision on Tuesday to close the grain and wool markets “until further notice” given the large amount of outstanding contracts held by the US broker.
Hedge Fund 3 Degrees Sues Ex-Lawyer After Order to Shut Down (Businessweek)
3 Degrees Asset Management, ordered by Singapore regulators to shut down over allegations that founder Moe Ibrahim diverted assets, sued former lawyer Ng Wee Chong, claiming breach of duties. 3 Degrees claims Ng, 37, failed in “handling all legal aspects” related to two separate loans of $6.7 million each in November 2007, according to a lawsuit filed with the Singapore High Court on Oct. 28. The Monetary Authority of Singapore and the finance minister decided to withdraw 3 Degrees’ exempt fund manager status effective Nov. 9 after Indonesian-born Agus Anwar alleged that the loans were “sham” transactions used by Ibrahim to divert funds to himself. The hedge fund, which managed about $215 million as of Oct. 5, has denied the allegations and is seeking to overturn the regulator’s decision. Ng said yesterday he wasn’t aware of any lawsuit filed against him. He declined to comment on the 3 Degrees allegations.
Dallas-based hedge fund Highland Funds Asset Management has launched a new fund. The new fund will use a global long/short strategy, according to a company statement. Hedge fund advisor Anchor Capital Management will serve as the newly-founded fund’s sub-advisor. Highland Funds has $3 billion in retail assets under management. Anchor Capital, which specializes in global long/short equity strategies, has $305 million in assets under management.
Kerr and Baker Street Capital in PGC Takeover Offer (Stuff)
Pyne Gould Corporation’s independent directors have issued a “don’t sell” advice to its 5000 shareholders after PGC director and cornerstone shareholder George Kerr and his US partners decided to speed up their takeover offer. Kerr and hedge fund Baker Street Capital have so far only posted a notice of intention to make a takeover offer at 33 cents a share and a formal offer to shareholders was not expected until around November 9. But as opposition to the “low ball” offer has grown they appear to have decided not to delay and their formal offer is to be sent in the next few days.
Einhorn Makes Sense to Green Mountain Coffee Shareholders (Forbes)
The stock price of Green Mountain Coffee Roasters Inc. (GMCR) took quite a hit last week, opening Monday at above $90 a share and closing Friday below $68. There is no mystery about the reason for this: David Einhorn made one of his now-renowned bearish calls in a detailed presentation to the Value Investing Congress Monday evening.