Hedge Fund News: James Dinan, Dan Loeb & Citadel Investment Group

James Dinan’s York Fared Well in the First Half (InstitutionalInvestorsAlpha)
James Dinan‘s New York-based hedge fund firm, York Capital Management, got off to a strong start this year, making it perhaps the best-performing multistrategy firm in the first half of 2014, thanks to gains in its special situations positions, among others. Its York Investment fund is up 12.1 percent through the first six months of the year after gaining 5.5 percent in the second quarter. The firm’s York Credit Opportunities fund is faring even better, posting a 12.8 percent gain for the year. York declined to comment on the results. And it is unclear whether the funds…


No Early Release For Ailing Israel (Finalternatives)
When she sentenced hedge fund fraudster Samuel Israel to 20 years in prison six years ago, U.S. District Judge Colleen McMahon knew exactly what she was doing—and she isn’t having doubts. McMahon has rejected Israel’s bid for an early release from the 22 years she sentenced him to—the extra two years were for bail-jumping. Israel argued that the Federal Bureau of Prisons wasn’t adequately treating his medical ailments and that he suffered a “near-death experience.”

Hedge funds increase short exposure (GlobalInvestorMagazine)
Aggregate hedge fund performance was negative at -0.35% in a volatile July, making it the industry’s fourth month of losses in 2014. This dropped year-to-date returns to 2.62%, according to eVestment. There was second consecutive month rise of short exposure heading into July. Median short exposure had been near its five-year low through much of 2013, but has since risen to its highest level since February 2010.

Third Point’s Loeb Cost Sotheby’s $24 Million in Fight (Bloomberg)
Fighting with billionaire activist hedge-fund investor Daniel Loeb can get expensive. A proxy battle cost Sothebys (NYSE:BID) $24.3 million in the first half of this year, the New York-based auction house said today as it reported second-quarter earnings. The amount is larger than the $22 million expense reduction the company announced earlier this year. The fight ended in May when Sotheby’s appointed Loeb to its board. Sotheby’s said it incurred the charges for advisory, legal and other fees associated with the proxy contest. Second-quarter profit fell 15 percent on higher tax expenses, Sotheby’s said in a statement.

Madoff trustee cannot void Merkin, Fairfield settlements -court (Reuters)
In a setback for the trustee seeking money for the former customers of imprisoned fraudster Bernard Madoff, an appeals court refused to void two settlements benefiting investors who sued “feeder funds” that sent their money to Madoff. Friday’s unanimous decision by a three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York leaves intact a $410 million settlement with J. Ezra Merkin, a Wall Street hedge fund manager who oversaw the Ariel Fund Ltd and Gabriel Capital LP, and an $80 million settlement with Fairfield Greenwich Ltd.

Squawk takes a stand on Valeant (CNBC)

Loeb Sees ‘Decisive’ Economic Data Spurring Fed Action (BusinessWeek)
Billionaire hedge-fund manager Dan Loeb is betting that the Federal Reserve will act sooner rather than later as the U.S. economy rebounds. “We believe Q3 economic data will be decisive and likely drive action by the U.S. Fed during the second half of the year,” Loeb said today on a conference call discussing results (TPRE:US) at Third Point Reinsurance Ltd., the Bermuda-based company that counts on his hedge fund to oversee its investment portfolio. The Fed has begun to wind down its bond-buying program, known as quantitative easing, as the U.S. labor market improves and consumers increase spending…

Hedge fund manager suing his former landlord, a model known as ‘Miss Wonderbra,’ for rent refund because of mice infestation (NYDailyNews)
A hedge fund manager who spent more than $1 million renting a Manhattan townhouse from a model known as “Miss Wonderbra” is demanding a refund of more than $600,000. In papers filed in Manhattan Supreme Court, Paul Enright, 40, says that he deserves most of his money back because he and his family never had access to the basement in the four-story, 4,120 square foot building on E. 19 St. In addition, he said, the rear garden was unusable because of a vermin infestation.

Kleinberg Kaplan Nabs Ex-Katten Hedge Fund Partner In NY (Law360)
Kleinberg Kaplan Wolff & Cohen PC has bolstered its hedge fund practice in New York with the addition of a former Katten Muchin Rosenman LLP partner, who’s experienced in structuring hedge funds and private equity funds and advising on securities and corporate issues, the firm announced Tuesday. Joseph 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, the firm said. He also represents…

Coventry City owner Sisu pays council £150,000 in court costs (CoventryTelegraph)
Coventry City’s owners Sisu have paid the second instalment of the council’s court costs. The £150,000 payment comes after the High Court in Birmingham awarded costs against the hedge fund following a three-day judicial review in June. Coventry City Council officials today confirmed the authority had received a £150,000 instalment from Sisu. The week before £100,000 was transferred. Together with the £470,000 awarded by the Football League it means the club will pay out £720,000 over a three week period.

Citadel Programmer Pleads Guilty In Data Theft (Finalternatives)
A former Citadel Investment Group software engineer has pleaded guilty to stealing the hedge fund’s high-frequency trading code, as well as that of another firm. Yihao Pu faces up to 20 years in prison when he is sentenced on Nov. 7, as well as fines of up to $500,000. He had been set to face trial on Sept. 2. Pu, who had faced 20 counts, appeared confused at yesterday’s hearing in Manhattan federal court, eventually telling the judge, “yes, I plead guilty,” and answering “yes” when asked if he knew what he was doing.

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