MF Global Files Bankruptcy (CNNMoney)
MF Global, a trader in commodities and derivatives, filed for bankruptcy production Monday, according to a court document. Trading in MF Global (MF) was halted on the New York Stock Exchange prior to the filing. The Federal Reserve Bank of New York suspended MF Global from conducting business with the Fed. Shares of MF Global fell 16% Friday to $1.20. Shares have fallen more than 85% so far this year. MF Global had until Monday to find a buyer or file for bankruptcy. According to The Wall Street Journal, a deal to sell many of its assets to Interactive Brokers (IBKR) as part of a bankruptcy filing package has been called off.
BulwarkBay Launches Maiden Fund with Backing of Six Institutional Investors (FINAlternatives)
Weavering ‘Cynically Manipulated’ Returns (FINAlternatives)
The liquidators of collapsed hedge fund Weavering Capital blasted the firm’s founder as part of its effort to recover money for the hedge fund’s investors. Magnus Peterson and other Weavering employees “cynically manipulated” the fund’s performance almost from day one “to pretend that the Macro fund had made a profit,” Robert Anderson, a lawyer for the liquidators, said Friday. Anderson also accused Peterson of using swaps with a Weavering-controlled entity that he claims investors knew nothing about to hide losses.
Hedge Funds Cut Bullish Bets on Brent Oil (Businessweek)
Hedge funds and other money managers cut bullish bets on Brent crude by 11 percent in the week ended Oct. 25, according to data from ICE Futures Europe. Speculative bets that prices will rise, in futures and options combined, outnumbered short positions by 48,408 contracts, the London-based exchange said today in its weekly Commitment of Traders report. Net-long positions fell by 5,800 contracts, from 54,208 a week earlier.
Rajaratnam Already Paid Fine (FINAlternatives)
Raj Rajaratnam has already completed part of his sentence for insider-trading. The Galleon Group founder’s lawyer said Friday that his client has already paid the $63 million in restitution and fines ordered when he was sentenced on Oct. 13. That, of course, was the easy part for the former billionaire; Rajaratnam is to report to prison to begin his 11-year sentence at the end of next month.
Andrew Goldman’s Seven Locks Capital Management Looking for Investors (FINAlternatives)
A former Magnetar Capital trader is seeking investors for a levered version of his two-year-old flagship hedge fund. Andrew Goldman’s Seven Locks Capital Management launched the Seven Locks Enhanced Fund this summer, HFMWeek reports. The vehicle is a two-times levered version of the firm’s flagship, a concentrated long/short equity and credit value/catalyst strategy focused on North America and launched in 2009.
Eliyahu Weinstein Charged with $200 Million Ponzi Scheme (FINAlternatives)
A New Jersey man has been charged with running a $200 million Ponzi scheme that targeted hedge fund principals. Eliyahu Weinstein got his start scamming his fellow Orthodox Jews in 2004, prosecutors allege. But last year—a year in which he was arrested, in August—he expanded his targets to include hedge fund principals. Prosecutors say that Weinstein, who was indicted along with an alleged co-conspirator, Vladimir Siforov, who is a fugitive, used the money he raised on art, cars, gambling, jewelry and his legal bills; indeed, according to the indictment, Weinstein continued to raise money even after being released on $10 million bail last year.
Kim Kardashian’s Husband Ripped Off In Hedge Fund Scam (FINAlternatives)
A star basketball player and his reality television icon wife are among the victims of an alleged $1.6 million hedge fund fraud. Kris Humphries, a free agent who played for the New Jersey Nets last year, invested hundreds of thousands of dollars with Andrey Hicks’ Locust Offshore Management. Hicks was arrested on Friday in Canada—authorities say he was on his way to Switzerland to avoid prosecution—days after a federal judge shut Locust down.
Will Matthews Leaves New Capital Partners (FINAlternatives)
Hedge fund life can’t compare to Alabama retail banking for one industry veteran. Will Matthews has left Birmingham-based New Capital Partners to rejoin his former colleagues from Alabama National Bancorp at the state’s National Bank of Commerce. Matthews was named CFO of the bank, the landing place for many top executives from ANB, which was sold to RBC Banks four years ago.