Gold Seek – Risk has quickly regained its status as a four-letter word.

No one wants to hear about it and no one wants to think about it. But those willing to take it on (pragmatically, mind you) will likely earn greater rewards than they would have at any other point in the past twenty years.

Right now, the herd is absolutely afraid of any risk at all…even good risks. My case in point is when the bond market went upside-down again yesterday. Investors were buying up the “safest” assets in the world as fast as they could.

At one point in the day, T-bills were yielding less than zero. Essentially, someone was willing to lend the government money for nothing, absolutely zero, in return.

It’s like selling dollar bills for 99 cents. It just doesn’t make any sense, but it does prove one thing; practically no one is willing to take on any risk right now. No one knows what’s going to happen next and the sidelines are a cozy, warm, and safe place to be. I can hear the beaten down hedge fund managers (that still has a job) now, “I may not get ahead, but I’m not going to fall behind either.”

Read Complete Article

Tags: advisory-services, beta, chief-executive, consumer-debt, fundamental-reasons, gao, genius, housing-market, losses, marcel, medallion, mold, proper-steps, s-smith

New York (HedgeCo.Net) – Hedge Fund Appaloosa Management may have tried to turn their back on Delphi, but somehow they just can’t seem to get away.  Ensnarled in a nasty court battle with the Michigan auto parts supplier, the judge is now reconsidering original fraud claims brought against the New Jersey based hedge fund. 

Delphi had sued the investor group headed by Appaloosa that originally agreed to inject $2.55 billion into the bankrupt company that was supposed to help lift them out of Chapter 11.  The investors commitment was going to provide a much needed piece of the $6.1 billion in financing that Delphi needed to secure by the April deadline.  When Appaloosa walked away as the deadline neared, Delphi was left scrambling, clinging only to former parent company General Motors. 

Judge Robert Drain told a Manhattan Court this week “It seems to me that I was unclear in what aspects of the allegations needed to be dealt with…I may have well been wrong.”

Drain said that when he dismissed this claim for fraud originally, he did not feel that Appaloosa made “affirmative misrepresentations” to Delphi about plans to scrap the financing deal.  Now, Drain is reconsidering, saying that any failures to communicate a change of mind could very well constitute fraud.

Both parties were asked to gather more information and submit briefs on the fraud claim by the next hearing on October 21.  Delphi is seeking damages from Appaloosa and a ruling that could make them deliver their original financial obligation.

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

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com

Tags: appaloosa-management-lp, bankrupty, bastion, brokerages, cayman-government, disapproval, due-diligence-service, evidentiary-hearing, harbinger, market-risk, proper-steps, unsecured-creditors