Court Upholds CDO Lawsuit Against Citi (FINalternatives)
Citigroup Inc (NYSE:C) can’t escape the fallout from the implosion of a group of collateralized debt obligations which Magnetar Capital allegedly had a hand in creating. A New York appeals court yesterday allowed Loreley Financing to proceed with its fraud lawsuit against the bank, although it did throw out a claim of unjust enrichment. Loreley alleges that Citi allowed Magnetar to secretly choose the securities underlying the CDOs, which happened to be the riskiest available, while the bank protected itself with credit default swaps.
Temasek Invests in Dymon Asia to Start Hedge-Fund Platform (Bloomberg)
Temasek Holdings Pte, the Singapore state-owned investment company, will start a venture with Dymon Asia Capital (Singapore) Pte to back new hedge fund managers and strategies as it becomes a minority stakeholder in the firm. Temasek committed $500 million initially that will be managed by Dymon, a hedge-fund manager based in the island-state, according to Dymon President Jay Luo. Luo and Dymon Managing Director Ben Freischmidt will be leading the new venture for Dymon, according to an e-mailed statement.
Asian Hedge Fund Capital Hits Record In Q1, Report Says (Law360)
The amount of money invested in Asian hedge funds hit a new record in the first quarter, with more than $2 billion in new capital flowing into funds, according to a Hedge Fund Research Inc. report Friday. Total capital invested in hedge funds in Asia climbed to $114 billion through the end of March, marking the second consecutive quarterly record for the region, the report said.
Standard General Takes 9.8% Passive Stake in RadioShack (Wall Street Journal)
New York hedge fund Standard General L.P. on Friday disclosed a 9.8% passive stake in struggling consumer-electronics chain RadioShack Corporation (NYSE:RSH), according to filing with the Securities and Exchange Commission. Standard General didn’t disclose a reason for its investment in the filing, but RadioShack’s stock has wallowed near all-time lows. The company’s shares have tumbled 49% since the start of the year and closed Friday at $1.33.
What goes on inside Wall Street’s secret backrooms (CNBC.com)
For every headline-grabbing foray by billionaire investors Carl Icahn or William Ackman, there are dozens more so-called activist investors the public never hears about. And this army of agitators is growing rapidly—and has a bulging arsenal of cash. When activist investors show up in a stock, they often make headlines. Assets get sold, or in the high-profile case of Apple Inc. (NASDAQ:AAPL) —there was a stock split, dividend hike and increased buyback. But most of the time, they don’t make headlines, and by some estimates, only about a third of the companies that are approached by activists ever make the overtures public.
