Deal Lawyer Accused of Insider Trading Scheme (NYT)
As a lawyer at three of the most prestigious merger and acquisition law firms in the country, Matthew Kluger stood at the center of the deal-making universe for nearly two decades. Now, he stands accused of using his position to run an insider-trading scheme that earned more than $32 million. The reported plot relied on tactics ripped from a television drama, including disposable cellphones, code names and a plan to burn $175,000.
Many Hedge Funds Still Smarting From the Financial Crisis (NYT)
Last year, Kenneth C. Griffin, the founder of the hedge fund giant the Citadel Group, celebrated his second year of double-digit gains. But despite strong performance, Mr. Griffin has not climbed back from the losses endured during the financial crisis. Citadel’s flagship fund is still 15 percent below its peak, according to people with knowledge of the firm who were not authorized to speak publicly.
Prosecution Rests Its Case in Galleon Trial (NYT)
Raj Rajaratnam has his work cut out for him. After five weeks and 18 witnesses, the government rested its case on Wednesday against Mr. Rajaratnam, the hedge fund billionaire, setting the stage for the defense to begin its bid to keep their client out of prison.
Ex-Deutsche Bank Saba Prop Trader Leads Hedge Fund to 200% Gain (Bloomberg)
Prudence Enhanced Income Fund, led by former Deutsche Bank AG (DBK) Saba proprietary trader Chad Liu, returned 200 percent in two years trading credit and convertible bonds sold by Chinese companies internationally. The Hong Kong-based hedge fund, which started in January 2009, beat the Eurekahedge Asia Fixed Income Hedge Fund Index’s 35 percent gain in the same period. Assets increased to more than $250 million from $30 million, Liu, Prudence Investment Management’s chief investment officer, said in an interview yesterday.
Ucits Fund Assets Tripled to $90.5 Billion in 2010, Survey Finds (Bloomberg)
Ucits funds tripled assets to $90.5 billion last year as managers attracted clients seeking to put money into the more regulated and easier-to-trade alternatives to hedge funds.
Firms started 129 funds last year that comply with the European directive known by the acronym for Undertakings for Collective Investment in Transferable Securities, Hedge Fund Intelligence said in a statement today. The funds raised more than $9.5 billion, according to the London-based data provider.
RAB to repay 79 pct of Special Situations fund (Reuters)
RAB Capital (RAB.L) said the bulk of clients in its embattled Special Situations fund have opted to pull their cash out, as one of the most high-profile hedge fund casualties of the crisis lets investors exit.
RAB said on Wednesday it will repay 79 percent of the fund — which is infamous for buying into Northern Rock before the lender’s collapse and which fell 70 percent in 2008 — when a three-year lock-up ends in October.