Paulson Tripled Shire Stake Before Deal Fell Apart (Finalternatives)
John Paulson clearly did not see the collapse of pharmaceutical giant AbbVie Inc (NYSE:ABBV)’s deal with rival Shire coming. Paulson’s hedge fund nearly tripled its stake in Shire PLC (ADR) (NASDAQ:SHPG) in the months before the $54 billion merger foundered last month. It also opened a position in AbbVie itself during the third quarter, according to a regulatory filing. Those positions took a beating when AbbVie walked away from the deal last month, after the U.S. Treasury Department instituted new rules limiting so-called tax inversions, in which U.S. companies acquire smaller foreign firms to move their headquarters abroad, saving on taxes. Shire is based in Ireland.
Quindell silent as investors mull MBO amid hedge fund rumours (CityAM)
Insurance services firm Quindell has declined to comment on investor speculation that the company is seeking a cash injection in order to carry out a management buyout (MBO). The firm is reported to be in talks with several hedge funds in a bid to gain fresh capital, and shareholders have flagged up the possibility that the firm’s management may use the money to buy the company. Quindell’s share price has plummeted in recent weeks, and slumped significantly last week after the firm was forced to clarify the details of a share transfer agreement between three of the company’s directors and Equities First Holdings.
Fink’s Hedge Fund ISAM Starts Foreign-Exchange Brokerage (BusinessWeek)
International Standard Asset Management Ltd., the London-based hedge-fund firm run by Stanley Fink, is starting a foreign-exchange brokerage to target institutional investors. The service, IS Prime, will provide prime brokerage, traditional and non-traditional liquidity and risk-management solutions, ISAM said in an e-mailed statement. Jonathan Brewer and Raj Sitlani joined the firm as managing partners from Sucden Financial Ltd., where Brewer was the head of electronic currency trading sales and Sitlani ran global institutional sales.
Perella Weinberg to Close Xerion Hedge Fund (WSJ)
A high-profile hedge-fund manager is throwing in the towel, the latest retreat in an industry that has struggled to navigate this year’s volatile markets. Daniel Arbess, known for his public predictions on macroeconomic trends, said Friday that he is shutting down the $600 million Perella Weinberg Partners Xerion fund that he has managed since 2002. Investors in the fund, which at its peak boasted more than $3 billion under management, will get their money back next month, according to a letter reviewed by The Wall Street Journal.
SAC’s Cohen To Face Wide-Ranging Deposition In Divorce Suit (Law360)
SAC Capital Advisors LP founder Steven Cohen will be deposed next month in a suit claiming he hid assets during a 1990 divorce proceeding and could face broader questions about insider trading at the hedge fund, a New York federal judge said Monday. Judge Loretta Preska said she would allow attorneys for Cohen’s ex-wife Patricia Cohen to question him about “prior acts that are alleged to be untruthful,” including his denial of any role in insider trading at SAC. The hedge fund and eight current and…
Ackman’s win-win (CNBC)