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West Palm Beach (HedgeCo.net) - Transport company, CSX Corporation announced that it has joined in a civil action brought by the plaintiff, shareholder Deborah Donoghue, in federal court in New York to recover so-called "short-swing" profits under Section 16(b) of the Securities Exchange Act of 1934.
The Children’s Investment Fund and 3G Capital Partners LP are there in connection with their alleged purchases and sales of CSX securities. CSX is party to the suit in name only, which was brought for the benefit of CSX.
If approved by the court, CSX will receive $10 million from TCI and $1 million from 3G and the defendants will be released from claims of violations of Section 16(b) of the Securities Exchange Act. The settlement provides that counsel for the plaintiff will seek approval by the court for attorney’s fees and costs of up to $550,000, which will be paid from the proceeds of the settlement payable to CSX.
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West Palm Beach (HedgeCo.net) - Oxford Funding Corp. has signed a letter of intent to acquire $40 million in new properties into its hedge fund, The Oxford Opportunistic Mortgage Fund, Ltd.
The assets are being acquired from ARCOA Capital Partners, LP, a Houston-based investment company. Larry Ramming, Managing Partner of ARCOA, stated, "We expect Oxford to manage and maximize these assets for us as the economy turns around. This should be a win-win for both our investors and Oxford’s shareholders."
Oxford plans to manage this portfolio of properties to maturity or sale. CEO Ron Redd said, "We expect this to be the first step in a series of profitable asset acquisitions over the next several months. We have demonstrated our ability to help Americans stay in their homes and protect equity values while making attractive returns for our company," Redd added. "This is a big step forward in our plan to build value for our shareholders by acquiring assets at attractive values and managing them to realize profits," he concluded.
Oxford Funding is an asset resolution company, engaging in the purchase and management of bulk mortgage loan portfolios in the United States. It buys loan portfolios secured by real estate on a wholesale basis at discounts to face value, and resells the assets on a retail basis with margins. The company acquires mortgage portfolios from banks, mortgage companies, and lenders; restructures and services the loans; and then re-packages the loans for resale. It also acquires performing, under-performing, and non-performing loans.
New York (HedgeCo.Net) – Two hedge funds run by famed portfolio manager Jeffrey Gendell are being closed because of heavy losses suffered this year. Both Tontine Partners LP and Tontine Capital Partners LP are liquidating assets, although no time table has been given.
The Greenwich-based Tontine Associates, which manages over $11 billion through their four hedge funds, reached their decision after the two funds lost more than two-thirds of their value this year. Tontine Partners was down 65 percent for the year through September September 30th, while Tontine Capital Partners plunged over 75 percent.
“The combination of falling commodity prices, massive anticipated hedge-fund redemptions and the seizing up of the credit markets caused an enormous dislocation in our portfolios,” Gendell told clients last month.
The hedge funds will be liquidated in an orderly fashion, in order to maximize shareholder returns.
Tontine Associates will continue to offer two other hedge funds; the Tontine Financial Partners LP and the Tontine-25 Fund, both run by Gendell. Before the recent credit crisis, all of the firm’s hedge funds were posting admirable returns of almost 40 percent annually since inception.
Hedge funds as a whole have not been faring too well as of late, with research by Hedge Fund Index showing losses of over 15 percent overall this year. The Tontine hedge funds are just the latest in a string of closures stemming from massive hits. Big names like Drake Management, Highland Capital and Ospraie have all closed funds this year.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
West Palm Beach (HedgeCo.net) – Brotman Capital Partners LP, based in Boca Raton, Florida, has turned in the best performance Year to Date of a Market/Trend Timing Hedge Fund according to Barclays Hedge Fund Database.
Through October, 2008 the Fund is up over 14% net of fees. The fund has a $100,000 minimum investment and charges a 2% management fee and a 20% incentive fee.
According to Dr. Randy Brotman, Chairman and CEO, the fund has remained in cash since the middle of August. He states that “in our Trend Timing Fund, cash is an option, therefore a position.”
The Proprietary Trend Timing Model that Brotman Capital Management LLC employs dictates when the Fund should be long, short or in cash. “Be are comfortable to sit on the sidelines and wait for the trend-timing model to tell us when we will reenter the market, Brottman concluded.
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CNNMoney.com – A shareholder has sued CSX Corp. (CSX) and two hedge funds over sales of CSX shares before the funds publicly disclosed plans to shake up the railroad operator’s board in a proxy fight earlier this year.
The lawsuit, filed in U.S. District Court in Manhattan on Tuesday, is seeking recovery of so-called "short-swing" profits related to sales by The Children’s Investment Fund Management LLP, or TCI; 3G Capital Partners LP and their principals between August and September 2007 on behalf of the company and its shareholders. CSX is a nominal defendant in the case.
The complaint alleges the funds or their principals purchased large numbers of shares and derivatives equivalent to CSX shares within six months of their prior share sales and at lower prices.
Bloomberg- When Blackstone Group LP, the world’s biggest buyout firm, was pursuing the takeover of the Weather Channel cable network earlier this month with General Electric Co. and Bain Capital LLC, Wall Street balked at providing financing.
So the New York-based company turned to GSO Capital Partners LP, the hedge-fund manager it acquired in March, to pull off the largest U.S. leveraged buyout this year.
Blackstone can’t wait for banks, stuck with almost $100 billion of debt from earlier LBOs, to start lending again. Instead, it’s pushing deeper into deal financing with GSO. The strategy may hurt the hedge-fund unit’s returns — some approaching 40 percent — if slowing economies lead companies taken private by Blackstone to default on their debt.
