Tag Archives: hedge fund

Hedge fund sues Mossack Fonseca for alleged obstruction of justice in Nevada

Law firm at the center of the Panama Papers scandal continues to face legal challenges and investigations

Confidential emails revealed in the Panama Papers have opened a new front in a bitter court battle in Nevada involving a hedge fund led by an American billionaire, new court filings show.

NML Capital, a hedge fund managed by New York investor Paul Singer, is suing the Nevada office of Mossack Fonseca, the law firm at the center of the Panama Papers scandal, for obstruction of justice.

The current legal action has its roots in Singer’s long fight to reclaim funds lost when Argentina defaulted on government bonds held by NML. Mossack Fonseca was not named as a defendant, but its Nevada operations were targeted with a court order demanding information about companies administered through the law firm that the hedge fund claimed may have been involved in the theft of millions of dollars from Argentine government contracts.

Read on.

Hillary Clinton Talks Tough on Shadow Banking, But Blackstone Is Celebrating at the DNC

July 28 2016, 10:38 a.m.

And yes, Wall Street and big corporation donors are crawling around at the DNC event. Money needs to be out of politics for good. And a definite NO for Hamilton “Tony” James, Blackstone COO, for U.S. Treasury head if there is a Clinton Administration!!! Great reporting, David!

Blackstone, the giant Wall Street private equity firm, will hold an invitation-only reception before the final night of the Democratic National Convention in Philadelphia. The event, at the swanky Barnes Foundation art museum, includes the usual perks for attendees: free food, drink, and complimentary shuttle buses to the final night of the convention.

What’s unusual is that the host is precisely the kind of “shadow banker” that Hillary Clinton has singled out as needing more regulation in her rhetoric about getting tough on Wall Street.

But Blackstone President and Chief Operating Officer Hamilton “Tony” James doesn’t seem the least bit intimidated.

James has been a stalwart supporter of Barack Obama, holding fundraisers for him at his home, even while other Wall Street titans criticized him — in fact the co-founder of James’s own company, Blackstone CEO Stephen Schwarzman, once likened Obama’s push to increase taxes on private-equity firms to a “war,” saying: “It’s like when Hitler invaded Poland in 1939.”

Last December, James hosted a high-dollar fundraiser for Hillary Clinton that featured Warren Buffett. He’s made six-figure donations to the Center for American Progress, known as Clinton’s White House in exile, and sits on CAP’s Board of Trustees. And he has made no secret of wanting to hold a high-level position in a future Democratic administration, perhaps even Treasury Secretary.

Read on.

Hedge Fund That Bet on Terror Lawsuit Is Accused of Fraud by SEC


A hedge fund that made a bet on the outcome of terrorism litigation was sued by the Securities and Exchange Commission for allegedly defrauding investors.

RD Legal Capital LLC marketed its funds as a steady way to profit from safe legal settlements, but instead “invested the funds’ money however they saw fit,” the SEC said Thursday.

The SEC also alleges that RD Legal and founder Roni Dersovitzrepeatedly misled investors about how much they had bet on the outcome of a judgment against Iran for sponsoring a terrorist attack that killed Americans.

Read on.

Hedge fund Visium’s Valvani who was arrested for inside trading charges found dead in apparent suicide: Police


Sanjay Valvani, a hedge fund manager at Visium Asset Management who was arrested last week on insider trading charges, has been found dead in an apparent suicide, the police said on Tuesday.

Valvani, 44, was discovered by his wife on Monday evening at his Brooklyn residence with a wound to his neck, a New York Police Department spokeswoman said. A suicide note has been recovered, as well as a knife, she added.

Hedge against a Trump presidency, short the peso

Mexican artisan Dalton Ramirez works on a pinata as another depicting U.S. Republican presidential candidate Donald Trump is seen at his workshop in Reynosa, Mexico, June 23, 2015.

Daniel Becerril | Reuters
Mexican artisan Dalton Ramirez works on a pinata as another depicting U.S. Republican presidential candidate Donald Trump is seen at his workshop in Reynosa, Mexico, June 23, 2015.

Short Mexico for Trump Presidency…lol!

CNBC (sub. req.):

If you think the U.S. is going to go long Trump, you may want to short Mexico.

If Donald Trump wins the U.S. presidency, Citigroup analysts have a strategy they think would work as a hedge, given his anti-Mexico rhetoric.

The presumptive Republican nominee has said numerous times he will build a wall along the Mexican border and make Mexico’s government pay for it, but Citi strategists say there is something else at risk.

Hillary Clinton Won’t Say How Much Goldman Sachs CEO Invested With Her Son-in-Law


By Lee Fang

The Intercept:

WHEN HILLARY CLINTON’S son-in-law sought funding for his new hedge fund in 2011, he found financial backing from one of the biggest names on Wall Street: Goldman Sachs chief executive Lloyd Blankfein.

The fund, called Eaglevale Partners, was founded by Chelsea Clinton’s husband, Marc Mezvinsky, and two of his partners. Blankfein not only personally invested in the fund, but allowed his association with it to be used in the fund’s marketing.

The investment did not turn out to be savvy business decision. Earlier this month, Mezvinsky was forced to shutter one of the investment vehicles he launched under Eaglevale, called Eaglevale Hellenic Opportunity, after losing 90 percent of its money betting on the Greek recovery. The flagship Eaglevale fund has also lost money, according to the New York Times.

There has been minimal reporting on the Blankfein investment in Eaglevale Partners, which is a private fund that faces few disclosure requirements. At a campaign rally in downtown San Francisco on Thursday, I attempted to ask Hillary Clinton if she knew the amount that Blankfein invested in her son-in-law’s fund.

After repeated attempts on the rope line, I asked the Clinton campaign traveling press secretary Nick Merrill, who said, “I don’t know, has it been reported?” and said he would get in touch with me over email. I sent the question but have not heard a response back.

Blame Wall Street for Puerto Rico crisis: Activist

Wall Street and Congress are, in part, to blame for Puerto Rico’s debt crisis, the president and CEO of the National Puerto Rican Coalition said Monday.

The island was set to default on a $389 million debt payment to bondholders Monday.

“Let’s be real here, Puerto Rico is in an economic, unstable situation in its relationship with the United States. And that is Congress, how Congress decided to build this relationship with Puerto Rico,” Rafael Fantauzzi said in an interview with CNBC’s “Power Lunch.”

Read on.

Elizabeth Warren calls SEC’s settlement with hedge fund manager Steve Cohen a joke

Sen. Elizabeth Warren reignited her feud with Securities and Exchange Commission chair Mary Jo White — and this time she’s dragging billionaire hedgie Steven Cohen into the middle of it.

Warren (D-Ma.) on Thursday ripped into the SEC for allowing the former SAC Capital chieftain to start a new hedge fund firm just two months after he was barred from managing outside money until 2018.

Cohen’s move has made a “mockery of the SEC’s core mission to protect investors,” Warren wrote in an open letter to White.

In January, Cohen agreed to a two-year ban on managing outside money to resolve allegations of insider trading at his former firm. He didn’t admit to any wrongdoing as part of his agreement with the SEC.

SAC Capital had already paid $1.8 billion to settle civil and criminal charges tied to the long-running investigation. After the plea deal, Cohen converted SAC into an $11 billion “family office,” Point 72, which mostly manages his huge personal fortune.

Read on.

Priest who sidelines as a hedge-fund manager, trades probed by Wall Street cop

  • SEC examining whether he spread false statements about stocks
  • Rules bar investors from profiting on misleading comments

A priest who sidelines as a hedge-fund manager is being investigated by U.S. regulators for possible stock manipulation, prompting scrutiny of trading skills that the cleric has described as a “gift from God,” according to people with knowledge of the matter.

The Securities and Exchange Commission is examining whether the Reverend Emmanuel Lemelson of Massachusetts made false statements about companies he was shorting, said the people who asked not to be named because the probe isn’t public. Securities laws prohibit traders from betting a company’s shares will fall and then trying to drive down the price by publishing information that they know isn’t true.

The SEC started its investigation after companies complained to the regulator that Lemelson, 39, had made potentially inaccurate comments about their firms in public forums, the people said. The opening of an SEC probe is typically a preliminary step and doesn’t mean Lemelson, who hasn’t been accused of wrongdoing, will ever face an enforcement action.Read on.


Clipping the United States’ Hedge Funds



Hedge funds and their billionaire managers offer up a powerful symbol of the forces that are driving America’s political and economic inequality. Getting the names and faces of these hedge fund billionaires before the public can help us tell a vivid story of what’s gone wrong with our economy and our politics – and help us build a movement to slice away at that billionaire power.

The “Hedge Clippers” campaign is doing plenty of that slicing. Begun in New York and now active in several other states, the effort is organizing at the state and federal levels around seemingly separate issues that range from school privatization and public sector cutbacks to environmental degradation and the ongoing assault on worker rights.

But these issues have much more in common than a first glance might suggest. They all trace back to the business and political practices of some of our country’s largest and wealthiest hedge funds.

Billionaire hedge fund managers have been leveraging huge amounts of investor capital to extract enormous cash payouts for themselves, the ultimate in “winner-take-all” economics. To squeeze out these payouts, they’ve been pressuring the enterprises they dominate to slash wages, eliminate pension and health benefits, and offshore middle-class jobs.