SEC delaying civil action against Cohen while criminal case against hedge fund firm proceeds (Victoria Times Colonist)
The Securities and Exchange Commission is delaying its civil action against billionaire hedge-fund manager Steven A. Cohen while federal prosecutors proceed with their criminal case against his firm, SAC Capital Advisors. The chief administrative law judge at the SEC, Brenda Murray, had been scheduled to hear the agency’s case against Cohen later this month. But she ruled Thursday to grant the Justice Department’s request for a delay.
Deere, GPS makers sued by hedge fund (Chicago Tribune)
Hedge fund Harbinger Capital, led by billionaire Phil Falcone, has sued Deere & Company (NYSE:DE) and GPS makers for $1.9 billion in damages in an effort recoup its investment in bankrupt wireless company LightSquared, court papers show. LightSquared filed for bankruptcy last year after Moline-based Deere, Garmin International, Trimble Navigation Ltd and GPS industry groups all opposed its plan to build a wireless network due to concerns that LightSquared spectrum would interfere with GPS systems, which are used in everything from farm machinery to airline navigation.
Playboy fraudster faces extradition to US over £12m hedge fund scam (Evening Standard)
A playboy fraudster is facing extradition to the United States to face charges over a multi-million pound hedge fund scam. Marc Duchesne, 52, pocketed £12million from at least 50 unwitting victims after promising them high returns on their money. Duchesne spent the money on a fleet of cars including a Ferrari Enzo, a Rolls Royce Phantom, a Bentley Arnage and several Hummers. He bought a speedboat for a friend, spent £60,000 on cosmetic dentistry and his cigar bill alone was more than £22,000. Described as a “Walter Mitty” character, Duchesne was later ordered to pay back £1.9m by a judge in his absence or face another five years jail in default of payment.
Hedge Fund Andor Capital Management’s Top Stock Picks (Seeking Alpha)
Daniel Benton’s technology and services focused hedge fund Andor Capital Management has filed its 13F for the second quarter of 2013, disclosing many of its long equity positions as of the end of March. Benton increased his stake in Google Inc (NASDAQ:GOOG), which had already been his top pick at the beginning of April, over the course of the quarter. As the tech company’s stock price bounces around $900 per share, it is valued at 17 times forward earnings estimates. Last quarter its net income grew by 16% compared to the second quarter of 2012, and if Google Inc (NASDAQ:GOOG) can hit analyst targets for next year and continue to grow earnings at double digit rates it could easily justify that valuation.
Hedge Fund GSO Scores Win With MBIA Bet (Wall Street Journal)
When MBIA Inc. (NYSE:MBI) and Bank of America Corp agreed in May to settle a four-year-old lawsuit, traders at GSO Capital Partners erupted in cheers. The agreement gave the New York hedge fund owned by Blackstone Group LP a $100 million profit plying one of Wall Street’s most-contentious trades since the financial crisis: whether MBIA, an Armonk, N.Y., bond-insurance company, would emerge intact from a cash crunch dating back to the U.S. housing bust and a related legal battle involving 18 banks and New York’s insurance regulator. Behind GSO’s gains was 41-year-old fund manager Darren Richman’s wager worth about $500 million that MBIA Inc. (NYSE:MBI) would wrangle settlements from the banks over real-estate losses, avoiding a seizure by regulators.