Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Caribbean Net News – The trustee liquidating Bernard Madoff’s investment-advisory business has asked a judge for a default ruling against Harley International Ltd, arguing that the Cayman Islands hedge fund failed to respond to a lawsuit accusing it of taking $1.07 billion in fake profit from Madoff’s firm.
If trustee Irving Picard’s July 2 request is granted, the hedge fund, run by Cayman Island-based Euro-Dutch Management Ltd, would be ordered to return money it allegedly withdrew during the six-year period before New York-based Bernard L Madoff Investment Securities LLC collapsed in a $65 billion fraud. Harley is being liquidated in a Cayman Islands court.
Lexington Herald-Leader – A bankruptcy judge agreed Tuesday to postpone a hearing on a hedge fund’s request for the appointment of an examiner in horse track owner Magna Entertainment’s Chapter 11 bankruptcy case.
At the request of attorneys, a hearing originally scheduled for Tuesday on the request by Greenlight Capital Offshore Partners was postponed until Aug. 18.
CNBC – Attorneys for a hedge fund are asking for the appointment of an examiner in horse track owner Magna Entertainment’s Chapter 11 bankruptcy case.
A hearing was scheduled Tuesday on the request by Greenlight Capital Offshore Partners, which wants an investigation of ties between Magna and its parent company, known as MID.
MID has played a dual role as both a potential bidder for MEC assets and one of its primary lenders.
Greenlight, an unsecured creditor of Magna as well as a large shareholder in MID, is concerned about the fairness of any asset sale.
Reuters UK – The nation’s second-largest pension fund, the Universities Superannuation Scheme (USS), said it was sticking by a medium-term plan to double exposure to alternative assets such as hedge funds and private equity.
The 23 billion pound pension scheme confirmed the target as it announced its first appointment to a new hedge funds team on Monday.
USS currently has 10 percent exposure to alternatives, making it already one of the more adventurous UK pension funds.
Its plan to increase that to 20 percent, coupled with specific move to boost hedge fund investment, will be comfort to an industry which struggled with poor performance and heavy outflows during a turbulent 2008.
"We believe that the current turmoil in the hedge fund industry represents a compelling investment opportunity for investors like USS who are able to take the long-term view," said USS’s head of alternative assets Michael Powell.
Forbes – Britain’s second-largest pension fund, the Universities Superannuation Scheme (USS), said it was sticking by a medium-term plan to double exposure to alternative assets such as hedge funds and private equity.
The 23 billion pound ($32.79 billion) pension scheme confirmed the target as it announced its first appointment to a new hedge funds team on Monday.
Miami Herald- CSX is resuming its annual meeting in Jacksonville, but it is uncertain what will be on the agenda.
When the board met in June in New Orleans, it halted the meeting so it could continue counting votes for a slate of directors pushed by hedges fund. CSX rescheduled the meeting for Friday.
CSX said last week that preliminary results of the vote showed four of the five directors pushed by hedge funds had been elected.
But Chairman Michael Ward said the new directors cannot be seated until a court proxy battle wraps up. The hedge funds say the railroad company is stalling.
Biloxi Sun Herald- The Senate voted Tuesday to move ahead with a Democratic plan to curb speculation in oil markets that has been blamed for some of the recent run-up in oil prices.
The 94-0 vote clears a procedural hurdle for the legislation, which would require the Commodity Futures Trading Commission to set limits on trading in oil markets by investors and speculators.
Despite the big tally, however, the rival parties are bitterly divided on how to address high gasoline prices and an underlying stalemate remains in place.
Forbes- Four hedge funds that own shares in Jelmoli Holding AG. have failed to win over investors at a vote over a proposed stock split and a special dividend at the Swiss retail and real estate companies.
The four funds Franklin Mutual, Fortelus, Sandelman und Obrem had filed a motion at Wednesday’s annual general meeting for a 5 to 1 split of the bearer shares and an extraordinary dividend of 115 Swiss francs, which would have resulted in owners of bearer shares losing voting power to holders of registered shares.
Investor Georg von Opel, who owns 25.2 percent of Jelmoli’s share capital but 52.9 percent of the voting rights, opposed the plans.
