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Reuters - A Citadel Investment Group LLC executive who ran an unprofitable credit investment group for the large hedge fund company has resigned, a person familiar with the matter said on Friday.
Joe Russell, who was instrumental in making Citadel’s investments in E*Trade Financial this year and in failed hedge fund Sowood Capital last year, left the Chicago-based firm this week, said the source, who requested anonymity in order to speak freely about the matter.
Russell ran the smallest of Citadel’s three credit groups, and it was the only one that was not profitable.
He resigned amid disagreements over how to manage the group, which like all of Citadel’s credit groups invested in highly leveraged companies, the source said. The group that Russell ran will now be folded into the two other credit groups that concentrate on convertible and structured debt.
Reuters UK - Vulture funds are finally saying debt from Spanish retailer Cortefiel is now cheap enough to buy, after waiting for months to see prices of the struggling company’s debt fall further.
The funds, which have raised billions of dollars to invest on the hopes that a worsening global economy will depress debt prices, are closely monitoring the Spanish group whose debt trades at about 42 percent of its face value.
"At these levels, you have to start thinking," said a hedge fund manager, under the condition of anonymity.
Cortefiel, owned by private equity firms Permira, CVC and PAI Partners is struggling as the Spanish economy slows in the wake of the credit crunch after a real estate bubble in the country burst.
Reuters- Veteran U.S. lawyer Brendan Sullivan is joining the defense team of indicted former Bear Stearns hedge fund manager Ralph Cioffi, a person close to the matter said on Tuesday.
Sullivan, a trial attorney who has represented high-profile clients including Iran-Contra figure Oliver North, will be an addition to Cioffi’s existing defense team, said the person, who spoke on condition of anonymity.
Cioffi and another former Bear Stearns portfolio manager, Matthew Tannin, were charged in June with conspiracy and securities fraud related to last year’s collapse of two hedge funds linked to risky mortgage investments.
Reuters Tokyo- Japan’s Nippon Life Insurance plans to invest about 30 billion yen ($282 million) in Russell Investments and form a business alliance with the U.S. investment and index group, sources familiar with the matter said.
Nippon Life, Japan’s top life insurer with about 46 trillion yen of assets, hopes the tie-up will help it bolster its ability to manage a broader range of assets including emerging market shares, the sources said, speaking on condition of anonymity.
Russell Investments is headquartered in Tacoma, Washington, and is a subsidiary of Northwestern Mutual Life Insurance Co. It had $211 billion of assets under management as of June 30, according to its website.