New Adventures for Hedge Fund Rogue in $200 Million Swiss Fraud Trial (Bloomberg)
A German hedge-fund manager who fended off U.S. extradition over an alleged $200-million fraud is finding legal troubles closer to home. Florian Homm’s trial on charges of fraud, criminal mismanagement, money laundering and forgery was due to begin in a Swiss court on Tuesday. Swiss prosecutors, in a 275-page indictment, allege the founder and chief investment officer of Cayman Islands-based Absolute Capital Management Holdings Ltd. made “massive” investments in thinly-traded penny stocks through a series of cross trades to fraudulently inflate their value.
Citadel, Point72 to invest $2.75 billion in hedge fund Melvin Capital (Reuters)
(Reuters) – Melvin Capital Management said on Monday it would receive an investment of $2.75 billion from Citadel, the Chicago-based hedge fund led by Ken Griffin, and billionaire investor Steven A. Cohen’s Point72 Asset Management. The infusion is expected to help stabilize the hedge fund, which has been hard hit by a series of short bets this year, the Wall Street Journal reported earlier in the day, citing people familiar with the firm.
Kempen Strengthens Sustainable Equity Strategy with Two New Hires (Institutional Asset Manager)
Kempen Capital Management (Kempen) has made two new appointments to its Sustainable Equity strategy team. Ivo Kuiper has been appointed as senior portfolio manager and Raoul Martin as equity analyst. The new team members further reflect Kempen’s commitment to the investment strategy centred on sustainability and engaged stewardship with a long-term investment horizon. Within the strategy, Ivo Kuiper will focus on the continued ESG data implementation for the underlying funds, in addition to his responsibility for the industrial sector. Ivo’s former position was head of asset allocation and government bonds at Kempen. Raoul Martin is joining the team after a successful traineeship at Kempen as an equity analyst and data specialist.
Apollo CEO Leon Black to Step Down Following Review of Jeffrey Epstein Ties (The Wall Street Journal)
Leon Black plans to step down as chief executive of Apollo Global Management Inc. after an independent review revealed larger-than-expected payments to disgraced financier Jeffrey Epstein that it nevertheless deemed justified. The monthslong review by Dechert LLP found no evidence that Mr. Black was involved in the criminal activities of the late Epstein, who was indicted in 2019 on federal sex-trafficking charges involving underage girls, according to the law firm’s report, which was disclosed in a securities filing Monday.
Hedge Fund’s Second SPAC Hudson Executive Investment II Prices Upsized $225 Million IPO (Nasdaq.com)
Hudson Executive Investment II, the second blank company formed by Hudson Executive Capital targeting high-growth industries, raised $225 million by offering 22.5 million units at $10. The company offered 2.5 million more units than anticipated. Each unit consists of one share of common stock and one-fourth of a warrant, exercisable at $11.50. The company may raise an additional $50 million at the closing of an acquisition pursuant to a forward purchase agreement with its sponsor. The SPAC is led by President and Chairman Douglas Braunstein, the founder and Managing Partner of Hudson Executive Capital, who previously served as CFO of J.P. Morgan. He is joined by CEO and Director Douglas Bergeron, a Managing Partner at Hudson who previously was CEO of Verifone.