Hedge Fund News: Ken Griffin, Jim O’brien, Stephen Diggle

Hedge Funds Position for Oil Rebound, Brent Bets Most Since July (Reuters)
Hedge funds have raised the number of their bets on a rise in the price of Brent crude to the highest since July, data showed on Monday, as speculators position for a possible rebound in oil prices following a near 60 percent collapse. Funds and other large speculators have been adding to positions betting on higher prices since October, even as prices have continued their seven month rout, hitting a new a new 5-1/2 year low on Monday below $48 a barrel. Data from the Intercontinental Exchange showed on Monday funds have accumulated positions on paper equivalent to more than 140 million barrels of crude – a level last seen when prices were near $105 a barrel in July.

BofA Said to Oust 150 Hedge Fund Clients Under New Rules (Bloomberg)
Bank of America Corp. cut ties with about 150 hedge funds last year in its prime brokerage group because new regulatory requirements designed to make the financial system safer are forcing lenders to reduce costs. The second-largest U.S. bank made the decisions based on which relationships were profitable enough to keep amid new capital and liquidity rules, according to two people familiar with the bank’s strategy, who asked not to be named because details are private. The cuts included the majority of its quantitative hedge fund customers, or those that use computer programs to trade, one of the people said.

Hedge Funds Push For Caesars Bankruptcy, Seek Examiner (Reuters)
A group of hedge fund creditors of Caesars Entertainment Corp. sought on Monday to force its main operating unit into bankruptcy and to appoint an independent examiner to investigate what they allege was the plundering of the company. The move follows Friday’s announcement that the largest U.S. casino operator had the backing of senior noteholders for its plan to cut the debt of the operating unit, known as CEOC, to $8.6 billion from $18.4 billion. Under that plan, the hedge funds that filed the involuntary bankruptcy would be paid around 12 percent of what they are owed. They hold claims of $41.1 million, according to court papers.