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.
Herald Tribune – At a bail hearing in which Arthur G. Nadel was sent back to his cell to come up with better co-signers, a federal judge heard from the receiver in the case about a previously unknown multimillion-dollar hedge fund account controlled by Nadel in the Cayman Islands.
Receiver Burton Wiand, a Tampa lawyer, testified that he had discovered a hedge fund in the Caymans that at one point contained $15 million. He was able to follow $5 million back to one of the six funds at Nadel’s Scoop Management in Sarasota. The whereabouts of the remaining $10 million is unclear.
Herald Tribune – Investors are always searching for the "Holy Grail" of investing; that is, investments with high returns, low risk and little correlation to the returns of the broad stock and bond markets.
Some investors believe that they have found it in the category of investments labeled as hedge funds.
A hedge fund is an investment partnership open only to a limited number of "qualified" (meaning wealthy and supposedly sophisticated) investors that engages in a range of non-traditional investment strategies, many of which are not permitted to mutual funds.
Herald Tribune – The Treasury Department has increased its offer to repay Chrysler’s senior lenders as part of continuing talks on how to reduce the company’s debt, a person who had been briefed on the talks said on Wednesday.
The government’s new plan, however, still shows a broad chasm between the two sides as Chrysler races to complete a reorganization plan by April 30 or face a near-certain liquidation through bankruptcy.
Herald Tribune – Partners of failed hedge fund trader Arthur Nadel said they were shocked to learn after Nadel disappeared on Jan. 14 that the six hedge funds for which he did the trading had been emptied of their purported $300 million in assets.
But what seems mysterious to them raised red flags in 2005 for the founders of HedgeCo.Net, a West Palm Beach hedge fund database site. HedgeCo dropped three funds run by Nadel’s Scoop Management Inc. — Valhalla Investment Partners LP, Viking Fund LLC and Viking IRA LLC. The concerns were: reported returns that were considerably higher than normal, no outside firm to verify the numbers and no outside administrator to monitor the accounts and send out statements to investors.
Herald Tribune – As Arthur G. Nadel made his way to New York Thursday under the watchful eye of U.S. marshals, the clock ticked away on the 30-day time limit faced by prosecutors to indict the man accused of a hedge fund swindle before they would have to set him free.
Nadel, accused of looting tens of millions of dollars from six hedge funds he operated from downtown Sarasota, has been ordered to stand trial in New York on one count of securities fraud and one count of wire fraud.
Herald Tribune – A federal judge extended a freeze on the assets of Sarasota’s Arthur G. Nadel on Tuesday, but failed to include other partners — a measure some investors with the accused hedge fund swindler have been pushing for aggressively because Nadel shared $95.5 million in incentive fees with other Scoop Management Inc. principals.
Nadel did not contest U.S. District Judge Richard A. Lazzara’s order freezing personal and business bank accounts, property and other assets Nadel controls solely or with others, so a hearing scheduled for today was canceled.
Investors like Fort Lauderdale’s Louis Paolino Jr., who is out $5.8 million since the Jan. 14 implosion of the six funds Nadel managed, had hoped the hearing might shed light on why the U.S. Securities and Exchange Commission was not seeking to include Nadel partners Neil or Chris Moody in the freeze.
