For Hedge Fund Whistleblower, Waiting Was the Hardest Part (WSJ)
When Frank Harrison decided in 2009 to go to the Federal Bureau of Investigation with allegations of fraud at hedge fund New Stream Capital LLC, he wasn’t prepared for one of the most nerve-wrecking aspects of being an informant—a long wait with little inkling of action being taken. Whistleblowers have become an increasingly important part of the U.S. government’s white-collar crime enforcement efforts and the 2010 Dodd-Frank law introduced new incentives to come forward with information…
Blackstone Hiring Hedge Fund Veterans For New Fund (HedgeCo)
Hedge fund investor The Blackstone Group L.P. (NYSE:BX) is now hiring top hedge fund talent for the launch of Blackstone Senfina Advisors LLC, a new hedge fund that will will have to up to 30 teams of seasoned investors with $100 million each to play with, making “make big, bold bets”, according to a report by The Wall Street Journal. Blackstone Senfina Advisors LLC will invest in private equity, real estate, credit and hedge funds, Blackstone currently has $272 billion in assets for public and corporate pension funds, academic, cultural and charitable organizations. Blackstone already manages $58.3 billion in assets at its BAAM hedge funds solution division.
3 more sentenced in $40 million ‘Black Diamond’ investment fraud (CharlotteObserver)
A federal judge in Charlotte this week sent three more financiers to prison, all linked to a massive Ponzi scheme that devoured life savings across western North Carolina. Chad Sloat, Michael Murphy and Jeffrey Toft were hedge fund managers for the $40 million “Black Diamond” investment fraud, which prosecutors said attracted 400 victims. Almost a fourth of those were 75 or older. The mastermind, Keith Simmons of Ashe County, was sentenced in 2012 to 50 years in prison and ordered to pay $35 million in restitution for what prosecutors described at the time as the worst financial crime in memory for this part of the state.
DAVID TEPPER: ‘It’s The Beginning Of The End Of The Bond Market Rally’ (BusinessInsider)
David Tepper says the bond rally is over. Speaking in an interview with Bloomberg, Tepper said, “It’s the beginning of the end of the bond market rally. We are done.” Tepper, the founder of $20 billion hedge fund Appaloosa Management, made these comments following the ECB’s interest rate cuts – and asset purchase program – announced earlier this morning. After starting 2014 at around 3%, the yield on the ten-year fell to less than 2.4% during the summer and is currently trading near 2.45%.
This Former Hedge-Funder Guarantees He Can Get Your Kid Into An Ivy League School (BusinessInsider)
This week’s Bloomberg Businessweek cover story profiles Steven Ma, a 36-year-old former hedge fund analyst who is making millions guaranteeing families that he can get their children into a top college – or their money back. Ma is the founder of ThinkTank Learning, described by Bloomberg reporter Peter Waldman as “a chain of San Francisco Bay Area tutoring centers that operate out of strip malls.” As long as an applicant can reach a certain GPA and SAT score – and the family pays tens of thousands of dollars – Ma guarantees his almost entirely Asian immigrant clientele admission to one of the best colleges in the country.