Hedge Fund News: Louis Bacon, Chase Coleman & Third Point

Louis Bacon and Peter Nygard Move Bahamas Feud to New York (NYTimes)
The hedge fund billionaire Louis M. Bacon has filed a lawsuit against the Canadian clothing magnate Peter Nygard, claiming a long history of character assassination and numerous environmental misdeeds related to Mr. Nygard’s large property in the Bahamas. The suit, filed jointly with an environmental organization based in the Bahamas, is the latest volley in a bitter spat between the two billionaires who have adjoining mansions in the exclusive enclave of Lyford Cay in the Bahamas and who have battled each other for years over Mr. Nygard’s building ambitions.

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Failed hedge fund founder finds buyer for Carnegie Hill co-op (TheRealDeal)
The founder of collapsed hedge fund FX Concepts, John Read Taylor, has found a buyer for his Carnegie Hill co-op. Taylor put the unit on the market in September, after embarking on a two-and-a-half year renovation and residing in the apartment for just six months. The following month, FX Concepts filed for bankruptcy. The 4,030-square-foot co-op at 2 East 88th Street sold for $20.5 million to Frederick C. Benenson, according to city records filed last month. Benenson is the son of real estate developer and philanthropist Charles Benenson and executive vice president of Benenson Capital Partners.

Chase Coleman’s Tiger Global Picked Up A Stake In Netflix, Dumped Kate Spade (BusinessInsider)
Chase Coleman‘s Tiger Global Management sold off its entire stakes in Kate Spade & Co (NYSE:KATE) and Sodastream International Ltd (NASDAQ:SODA) and picked up a new stake in Netflix, Inc. (NASDAQ:NFLX). The fund also upped its stakes in Zillow Inc (NASDAQ:Z) and 3D Systems Corporation (NYSE:DDD), according to a government filing. Coleman was named 2011’s most profitable hedge fund amid volatile markets and economic turmoil, according to Bloomberg Markets Magazine. He is a protege of legendary hedge fund manager Julian Robertson.

Hedge Fund Picks Google Exec. For American Apparel Board (Finalternatives)
Hedge fund Standard General has completed the refashioning of American Apparel Inc (NYSEMKT:APP)’s board, appointing Google Inc (NASDAQ:GOOG) executive Laura Lee as its third nominee. Standard General agreed last month to provide $25 million in rescue financing to the struggling retailer. In exchange, it received the right to appoint three of the company’s seven directors—with input on two others. Standard General and American Apparel named the other six members of the board last month.

Harbinger Files Competing LightSquared Bankrutpcy Plan (Finalternatives)
In the wake of its latest reorganization plan, Harbinger Capital Partners’ wireless internet venture appears even further from exiting bankruptcy. LightSquared last week offered a new proposal that would leave Harbinger, which has invested nearly $2 billion in the company, with nothing. This week, Harbinger put forth its own plan that would split LightSquared in two, leaving the hedge fund in control of the smaller company. Another hedge fund, Mast Capital Management, may file its own competing reorganization plan ahead of an Oct. 20 hearing before U.S. Bankruptcy Judge Shelley Chapman…

Third Point’s Q2 13F filing (CNBC)

Jana Buys FMC Stake, Adds to AIG, Exits Sirius in Quarter (BusinessWeek)
Jana Partners LLC, the $10 billion hedge-fund firm run by Barry Rosenstein, bought shares of FMC Corporation (NYSE:FMC) and exited stakes in Sirius XM Holdings Inc. and Juniper Networks, Inc. (NYSE:JNPR) during the second quarter. Jana bought 4.99 million shares of chemicals maker FMC valued at $355.5 million as of June 30, according to a filing with the U.S. Securities and Exchange Commission today. It was the second-largest new holding after oil and and natural gas company Apache Corporation (NYSE:APA), which has been previously disclosed. The New York-based firm also took a position in Equity Commonwealth (NYSE:EQC) that was valued at $144 million.

Blackstone-Backed Senator Takes 6.3% Radian Group Stake (Bloomberg)
Senator Investment Group LP, the hedge-fund firm backed by The Blackstone Group L.P. (NYSE:BX), disclosed a 6.3 percent holding in Radian Group Inc (NYSE:RDN), becoming the latest asset manager to wager on a housing recovery by taking a stake in the mortgage insurer. Senator has 12 million shares in Radian, the New York-based firm said today in a regulatory filing. That’s the second-largest holding in the Philadelphia-based insurer, trailing a 9 percent stake held by Fidelity Investments, according to data compiled by Bloomberg.

Loeb’s Third Point Buys Rackspace, IAC, FMC Stakes, Exits Google (BusinessWeek)
Daniel Loeb’s Third Point LLC hedge fund amassed new stakes in cloud-computing provider Rackspace Hosting, Inc. (NYSE:RAX) and IAC/InterActiveCorp., while exiting Verizon Communications Inc. (NYSE:VZ) and Google Inc. in the second quarter. Third Point’s holding in San Antonio-based Rackspace was worth $244 million at the end of June, according to a filing with the U.S. Securities and Exchange Commission today. Third Point also disclosed it held about 9.5 percent of Ally Financial Inc (NYSE:ALLY), with a market value of $1.09 billion as of June 30. The auto lender is Third Point’s second largest position after Dow Chemical Co., which it added also to, the filing shows.

Judge Allows SAC Capital Insider-Trading Lawsuit to Proceed (WSJ)
A federal judge in Manhattan has allowed a class-action lawsuit against hedge-fund chief Steven A. Cohen’s SAC Capital Advisors LLC to continue, according to documents released Thursday. Judge Victor Marrero on Wednesday granted a motion by the defendants to dismiss certain claims in the suit, but denied motions regarding the other claims. The judge also denied motions to dismiss the case against defendants Mathew Martoma and Sidney Gilman.

The SEC Is Looking Into Bill Ackman’s Big Allergan Deal (BusinessInsider)
The SEC is investigating Bill Ackman and Canadian pharmaceutical company Valeant Pharmaceuticals Intl Inc (NYSE:VRX) for their hostile pursuit of Allergan, Inc. (NYSE:AGN), another pharmaceutical company, according to a report by Dow Jones. Allergan has already filed suit against both Ackman and Valeant for insider trading. It alleges that Ackman and Valeant violated specifically SEC rule 14 e-3, which has to do with making tender offers for companies based on or while knowing material non-public information.

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