The Hedge Fund Manager On The FBI’s Most Wanted List (HedgeCo)
Florian Wilhelm Jürgen Homm, a German hedge fund manager who was on the run for more than five years, is wanted by the FBI for his alleged involvement in a market manipulation scheme designed to artificially improve the performance of eight Cayman Islands-based hedge funds managed by Absolute Capital Management Holding Limited. The fraud led to at least $200 million in losses to investors around the world, the FBI alleges. Homm was arrested in Italy last year by Italian authorities. While extradition procedures were pending, Homm was released and fled to Germany in June of 2014.
Goldman rethinks services it provides to hedge funds (Reuters)
Goldman Sachs Group, Inc. (NYSE:GS) is jettisoning less-profitable hedge-fund clients and raising fees on others as it tries to adapt to new banking rules, the Wall Street Journal reported on Monday, citing people familiar with the matter. The bank has told hedge fund clients the regulations have forced it to set aside more capital, crimping profits at its prime-brokerage business, which executes and finances the funds’ trades, the newspaper said. …he move is part of an attempt by Wall Street banks to scale down from capital-intensive businesses in order to comply with stricter capital requirements by U.S. regulators.
Baroness Betty Boothroyd blasts David Cameron for promoting cronies to House of Lords (Mirror)
Former Commons speaker Betty Boothroyd led protests at David Cameron’s plans to stuff the House of Lords with more donors, cronies and B-list celebrities. Baroness Boothroyd blasted Mr Cameron for filling Parliament’s Upper Chamber with “lobby fodder” to do his bidding – with the PM set to appoint at least 20 more peers. Apprentice star Karren Brady, and former Marks & Spencer boss Sir Stuart Rose are among those who will be draped in ermine this week. Hedge fund boss Michael Farmer is also likely to be among a dozen or so new Tory peers after donating nearly £6million to the party.
Kleinberg, Kaplan Expands Hedge Fund Practice (Finalternatives)
Joseph Iskowitz has joined Kleinberg, Kaplan, Wolff & Cohen as a partner in the hedge fund practice. Previously a partner in the New York office of Katten Muchin Rosenman, Iskowitz focuses his practice on the formation and structuring of domestic and offshore investment funds, including hedge funds and private equity funds, and advises funds on operational, securities, corporate and compliance issues. He also represents fund managers, investors and third-party marketers of private investment pools.
Starboard raises Darden stake to 8.8 percent (OrlandoSentinel)
Starboard Value announced Tuesday that it now owns 8.8 percent of Darden Restaurants, Inc. (NYSE:DRI), up from 6.2 in May. Starboard is a hedge fund with a hostile plan to replace Darden’s entire board. Starboard and Darden have been feuding since late last year. Starboard criticizes Darden for selling Red Lobster, the original Darden chain, for $2.1 billion this summer. On Monday, Darden released a statement blasting Starboard and calling its criticisms inaccurate and misleading. Darden said shareholder dividends could be at risk if Starboard takes over.
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