Kyle Bass Is ‘Frustrated’ by Shire’s Lialda Patent Ruling (Bloomberg)
Hedge fund manager Kyle Bass expressed frustration that the U.S. Patent and Trademark Office upheld the only patent covering Shire Plc’s colitis drug Lialda and argued that “the system must be fixed.” The Patent Trial and Appeal Board within the agency on Wednesday rejected arguments by Bass’s Coalition for Affordable Drugs that the patent never should have been issued. The coalition had argued the patent covered old ideas. Bass said in a statement he was “frustrated” that the ruling “enables Shire to improperly maintain a government-granted monopoly and to exploit the U.S. health-care system, doubling the price of Lialda since 2007, much like EpiPen,” the allergy shot that U.S. regulators accuse Mylan NV of pricing too high.
Goldman Employees to Pull $300 Million From Omega Advisors (Bloomberg)
Goldman Sachs Group Inc.’s retirement plan is pulling about $300 million from Leon Cooperman’s Omega Advisors Inc., marking the second time this year it’s cutting ties with a famous alum who ran afoul of U.S. authorities. The bank informed employees of the decision in a memo Wednesday, according to a person with knowledge of the situation. Most of the funds, which are held in a separately managed account, will be liquidated by Oct. 31, said the person, who asked not be identified because the information is private.
Hedge Fund Lansdowne Extends Losses This Year to $1.8 Billion (The Wall Street Journal)
Lansdowne Partners (UK) LLP, one of the world’s largest hedge funds, extended its losing run last month, missing out on a rebound enjoyed by many of its peers. Lansdowne’s flagship Developed Markets fund lost 2.3% in September, according to numbers sent to investors and seen by The Wall Street Journal. That equates to a loss of about $250 million. It means the fund, which has been one of the best-performing hedge funds of recent years and which is run by Peter Davies and Jonathon Regis, is now down 14.7% this year, according to the numbers.
New Fund To Launch Where You’ll Pay No Performance Fee (CNBC)
A new fund spun out from hedge fund manager Odey Asset Management will only charge investors a 1 percent management fee and zero performance fees, levels sharply lower than traditional industry standards. The first fund from Latitude Investment Management, the Latitude Horizon fund, has been moved from Odey’s hedge fund stable into a UCITS (Undertakings For The Collective Investment Of Transferable Securities) structure. The fund’s fees are being cut as part of the move and represent a steep drop from the historical hedge fund benchmark billings of 2 percent management and 20 percent performance fees.