| Shawn "Jay-Z"
One year ago
star Jay-Z filed a $3.7 million lawsuit against Highland Capital Management, accusing the
Dallas hedge fund firm of trying to "bleed" him for interest
payments of roughly $20,000 a day on a loan gone bad.
The rapper, née Shawn Carter, was to build a
boutique "J" hotel on West 21st Street in Manhattan, a site he
bought in 2007 as the real estate market around the High Line
park was peaking. The $52 million loan from Highland matured in
August 2009 and the meetings between teams for the rapper and
money manager failed to restructure the deal.
The legal fight in New York court ended in October
when the matter was settled out of court. New York City records
show that Carter transferred the property to Highland, which
initially called the rap star’s claims
"meritless." According to the November 2010 sale document, the
property’s assessed value was $3.9 million with a
sale price of $52 million, the amount of the senior loan taken
on the property.
Through spokespeople, Carter and Highland declined
Investment Management, Jaffray Woodriff’s
now $5.58 billion commodity hedge fund firm, said it
was closing its two largest funds to new investments.
The firm was also liquidating four of its smaller funds, citing
poor performance and a lack of investor interest.
It didn’t last long. The two funds
that closed reopened to new investments December 1. As of
January 1, the Quantitative Global Program had $4.46 billion in
assets under management after falling 3.40% in 2010, according
to investor materials, and the Quantitative Tactical Aggressive
fund managed $500 million after generating a 15.16% return last
year. Both funds were up in January, 0.30% and 6.17%,
Five years ago
»» A small
loan made by Ken Griffin's Citadel returned to haunt the firm thanks to disgraced
former Washington lobbyist Jack Abramoff. The deal from 2000
resurfaced when Abramoff pled guilty to wire and mail fraud
aimed at tricking Citadel and another lender, Foothill Capital,
to put up $60 million to help finance his purchase of the
SunCruz Casino fleet of offshore gambling boats. The
Hollywood-like story included Abramoff allegedly bribing a
congressman in relation to the deal and the SunCruz owner being
murdered in a mob-style shooting.
Abramoff was later sentenced to five years and 10 months in
prison and was ordered, along with his business partners, to
repay Citadel and other lenders. "Casino Jack," as Abramoff was
called (also the name of a recent
biographical movie starring Kevin Spacey) was released in
BlackRock Small-Cap Energy Hedge Fund
netted a 42.33% gain in 2005, besting its average
peer in the AR Global Equity Index by a factor of almost three.
The honor was all the more impressive given that global
equities was the top strategy in 2005.
Recent performance could not immediately be
obtained and BlackRock did not respond to a request for