Editor’s Note: Related Tickers: Sony Corporation (ADR) (NYSE:SNE), Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc (NYSE:V), Foster Wheeler AG (NASDAQ:FWLT),
Tepper’s Short Hills hedge fund turns 20, but the real party is the returns: report (The Star-Ledger – NJ.com)
If you invested $1 million in David Tepper’s hedge fund 20 years ago, how much would you be worth today? How about $149 million? That’s what Appaloosa Management, the hedge fund that Tepper founded in 1993, has told its investors, according to a report by Bloomberg News. The Short Hills-based firm celebrated its 20th anniversary last month. And it appears the market-beating party is far from over. In a letter to investors signed by Tepper, Appaloosa said it clocked a 17 percent return for the first six months of the year. That’s well in advance of the Standard & Poor’s 500 index, which has returned 14 percent amid the current bull market.
SAC Capital’s Indictment May Affect All of Wall Street (The Fiscal Times)
The Wall Street firms that do business with SAC Capital are right to be privately worried about possible legal contamination from the criminal indictment against the hedge fund. Publicly, Wall Street is standing behind SAC Capital. It’s “business as usual,” according to reports. Gary Cohn of Goldman Sachs recently praised SAC as “a great counter party” in an interview with my colleague Kate Kelly. But behind the scenes, Wall Street executives are worried, according to people familiar with the matter. All the biggest Wall Street firms have extensive ties to SAC Capital—ties that could put them in legal jeopardy, particularly under much larger exposure spelled out in the Dodd-Frank banking reform regulations.
Sony rejects hedge fund chief’s proposal to spin off entertainment division (The Guardian)
Sony Corporation (ADR) (NYSE:SNE)’s board has unanimously rejected a US hedge fund manager’s proposal that it sell part of its entertainment business, sending the Japanese company’s shares down more than 5%. In a letter to Daniel Loeb, CEO of Third Point, Sony said that continuing to own 100% of Sony Pictures and Sony Music was “fundamental” to the company’s success. Besides distributing blockbuster films such as the James Bond hit Skyfall, Sony’s entertainment divisions make popular TV shows including Community for NBC and Breaking Bad for AMC. Sony Music artists include Beyoncé, Adele, Bob Dylan and Kenny Chesney. Sony Corporation (ADR) (NYSE:SNE) operates 124 pay TV channels in more than 159 countries.
The Top 25 Hedge Fund Managers Earn More Than All the 500 Top CEOs Together (Forbes)
The best chance of becoming Super Rich is to be one of the highest paid hedge fund masters of the universe. In 2010 the top 25 hedge fund managers combined earned roughly 4 times as much ALL 500 of the CEOs at the top of the 500 giant corporations that make up the S&P 500 index. The average pay of these 25 hedge fund managers was $134 million in 2002, peaked at over $1 billion in 2007 and was sliced to a measly $537 million in 2012. Private Equity is your next best shot at becoming a Forbes billionaire Private equity fees have averaged $34 billion a year in the period, 2005 to 2011. And in 2012 the three founders of Carlyle each received a distribution of $300 million; while the founder of Blackstone got over $200 million, and Henry Kravis and George Roberts of KKR each received more than $130 million.
Clooney vs. Loeb continues (CNBC)
Stamford hedge funder gets 2 years in prison (The Advocate)
Berton Hochfeld, a 66-year-old Stamford man, was sentenced Monday to two years in federal prison for fleecing his hedge fund’s investors out of more than $2 million. Hochfeld, the former manager of Hochfeld Capital, which was based in New York City, pleaded guilty in January to one count of securities fraud and one count of wire fraud. The charges stemmed from his inflating the firm’s assets in monthly reports to investors and secretly pulling out millions of dollars for himself — part of which he spent on vacations and antiques, federal prosecutors said.