HEDGE FUND NEWS

Reuters - U.S. federal prosecutors asked securities regulators to delay a civil case against two former Bear Stearns hedge fund managers while they hold grand jury hearings in building a criminal case against the pair.
Fund managers Ralph Cioffi and Matthew Tannin were arrested and indicted in June, the first executives to face federal criminal charges […]

New York (HedgeCo.Net) - Harbinger Capital has taken an 8 percent stake in Cablevision Systems Corp., according to a regulatory filing done yesterday with the Securities and Exchange Commission.
The activist hedge fund now owns nearly 19 million shares of the cable operator.  The filing communicated Harbinger’s views that the stock is undervalued and also touched […]

Reuters - The Federal Reserve acted on rumors last month and called Credit Suisse Group to see if it had pulled a credit line from Lehman Brothers Holdings Inc, The Wall Street Journal said citing people familiar with the matter.
Credit Suisse told Federal Reserve officials that there was no truth to the rumor and […]

Bloomberg - Daniel Loeb, whose Third Point LLC is being investigated by regulators, said his "give-and-take” with other hedge-fund managers doesn’t violate securities laws.
The U.S. Securities and Exchange Commission is probing New York-based Third Point, which manages $5.6 billion, for its communications with other hedge funds, Loeb said in a July 25 letter to clients. […]

Washington Post - When the Securities and Exchange Commission issued an emergency order last month protecting the stocks of the country’s largest financial institutions against a form of short selling, three businessmen saw an opportunity.
Harvey Pitt, SEC chairman from 2001 to 2003 and chief executive of District-based global consulting firm Kalorama Partners, teamed […]

Reuters - Billionaire investor George Soros hiked his stake in Wall Street firm Lehman Brothers to 9.5 million shares as of June 30 from 10,000 shares, according to a U.S. regulatory filing on Thursday.
Soros disclosed the quarter-over-quarter increase in a filing with the Securities and Exchange Commission.
Soros raised his stake in Lehman ahead of a […]

The Age - Third Point, the New York-based hedge fund run by Daniel Loeb, bought a stake in BHP Billiton worth $US162 million at the end of June, adding the world’s largest mining company to its portfolio.
Third Point, known for pushing companies to make changes that increase their stock prices, bought 1.9 million shares […]

Reuters - An activist British hedge fund has taken a 6 percent stake in Washington Mutual Inc as the largest U.S. savings and loan tries to rebound from billions of dollars of mortgage-related losses.
The London-based fund, Toscafund Asset Management, also reported a 5.1 percent stake in Sovereign Bancorp Inc, the second-largest U.S. thrift.
Toscafund […]

Milwaukee Business Journal - An activist British hedge fund has taken a 5 percent stake in Sovereign Bankcorp Inc.,  according to a filing with the Securities and Exchange Commission.
London-based Toscafund Asset Management said its passive stake amounts to 33.5 million shares.
Banco Santander Central Hispano, Spain’s largest bank, owns roughly a quarter of Sovereign’s stock and […]

New York Post- If the Securities and Exchange Commission expands its clampdown on short-selling, it is widely expected to slam hedge funds like Stephen Cohen’s SAC Capital and James Simon’s Renaissance Technologies, which profit from fast-and-furious trading, experts predicted.
That’s because under the long-accepted rules of the short-selling game, these hedge funds, which often […]

Fort Worth Star Telegram- Citadel Investment Group is bullish on RadioShack, buying 6.9 million shares, or 5.3 percent of the electronics retail chain’s stock, according to a federal filing Monday.
With the purchase, the Chicago-based hedge fund becomes the fourth-largest holder of RadioShack stock — but the only one of the top seven that has been […]

Reuters- It’s turning into a busy summer for U.S. lawyers who advise hedge funds as the industry faces growing questions about potentially manipulative trading and regulators are knocking at fund managers’ doors.
With the markets in turmoil, the loosely regulated sector is under increasing scrutiny. The U.S. Securities and Exchange Commission recently sent subpoenas to […]