eBrandz – In a move expected to fuel speculation over Yahoo Inc.’s search for a new chief executive — Corporate raider and billionaire investor Carl Icahn augmented his stake in Yahoo, has bought up close to 7 million additional shares of the Internet Company over three days this week, paying around $67 million, according to regulatory filings.

Icahn, a billionaire hedge-fund manager who now holds a seat on Yahoo’s board, acquired 6.77 million additional shares of Yahoo stock during November 24-26 for 67 million dollars, now owns 75.6 million of the company’s shares, or a 5.4 percent stake valued at around $870 million based on Yahoo’s closing share price on Friday, according to the documents filed with the Securities and Exchange Commission and dated Wednesday.

The company’s stock moved up 93 cents, or nearly 9%, to $11.51 in the shortened trading session after Icahn, a Yahoo board member who has been pushing a strategy shift or a sale to Microsoft Corp., said he had bought about 6.8 million shares.

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New York (HedgeCo.Net) – Citadel Investment Group announced yesterday it will shut down its $1 billion fund of hedge funds portfolio and use the capital to invest in other businesses.

The Fusion fund was launched a year and a half ago, with nearly 95 percent of the capital coming entirely from Citadel.  The money will be used to invest in businesses that finance new asset managers.  The remaining 5 percent of capital will be returned to investors.

"We have seen strong interest in the incubation and seeding strategies that we’ve developed," Katie Spring, spokeswoman for Citadel told Bloomberg News.  "We believe these will be important components of expanding investment talent over the years to come.”

This move comes after months of swirling rumors that the $18 billion firm, headed by Kenneth Griffin, may not be able to weather this year’s credit crisis.  Citadel’s largest fund, the $10 billion Kensington Global Strategies, has fallen 30 percent this year stemming from losses tied to convertible bonds.

Seeding has seen a spike in popularity in recent years.  It involves focusing on new and emerging funds and fund managers in hopes of someday partaking in profit sharing once the fund experiences success.  Seeding is something that new hedge funds generally seek out if start-up capital isn’t readily available, to help get their fund off the ground.  New hedge funds may receive anywhere from half a million dollars to several hundred million dollars.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Cayman Net News- The Royal Cayman Islands Police Service (RCIPS) have arrested an unidentified 47-year-old man in connection with last month’s collapse of several Cayman-domiciled investment funds.

Detectives from the Financial Crimes Unit (FCU) arrested the man on suspicion of theft, false accounting and uttering false documents after their investigations into the collapse of four hedge funds listed under the umbrella name “Grand Island”.

In June the Cayman Islands Monetary Authority (CIMA) confirmed that the “Grand Island” funds were put into voluntary liquidation by the funds’ shareholders. Three of the four funds involved were registered with CIMA in 2006 and one other was an unregulated fund.

Police say that the funds were believed to have been worth millions of dollars, though it is still unclear how much money was lost and how many people are affected by its collapse.

However, it is widely speculated that the losses are up to $70 million dollars and the main commodity being traded was oil. Because of the nature of the three registered funds investors had to contribute at the very least US$100,000.

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