Steven Cohen may wish he never gave testimony in a case
a year ago, as his words may wind up being used against him as
federal regulators continue to investigate his $14 billion
hedge fund firm, SAC Capital. According to a report in the New
York Post, Cohen said in sworn testimony in another legal case
that insider-trading laws are "vague" and that compliance rules
at his firm are merely "guidelines." SAC has received a
so-called Wells Notice from the Securities and Exchange
Commission warning that it could face civil charges. Meanwhile,
SAC disclosed a 5.6 percent passive position in Arthrocare,
which makes surgical instruments.
Dyal Capital Partners said it has closed its new private equity
fund designed to make minority investments in the management
companies of established hedge fund firms after raising $1.28
billion. Dyal, managed by Neuberger Berman Group, has already
made two investments. It holds stakes in Mast Capital
Management, a $1.5 billion hedge fund firm in Boston that
invests in credit-related strategies, and Capital Fund
Management, a $5.1 billion quant fund group based in Paris,
according to an earlier report by institutionalinvestor.com.
Dyal plans to purchase minority interests in a portfolio of
about 12 to 15 hedge fund management companies. The New Jersey
State Investment Council recently committed $200 million to the
Eddie Lampert's ESL Partners continues to prune its positions
in its major holdings. The hedge fund firm reported that it
reduced its stake in Sears Holdings to around 36.3 million
shares from nearly 43 million shares. But Lampert lifted his
personal stake in the struggling retailer to nearly 23.5
million shares, from approximately 22.7 million shares.
Ken Griffin's Citadel Advisors LLC disclosed it owns a 5.2
percent passive stake in Halcón Resources, an
independent energy company.
Leon Wagner, co-founder, Goldentree Asset Management, says
collateralized loan obligations are very attractive. "Leverage
is underpriced," the hedge fund manager asserted Monday morning
on Bloomberg TV. He concedes that liquidity could still be a
problem if you want to sell them tomorrow. But he says CLOs -
which are a pool of high yield bank loans - are in the top 10
percent of great investment ideas today. He stresses that the
average CLO has 100 positions, and not one CLO defaulted during
the 2008 financial crisis.