Archive for March 2007

Solengo Imbroglio Weekend Updates!


We’ll update this post with the latest Solengo Capital news as it breaks. If a court slaps a restraint order against us over the weekend, you’ll read it here first!
• Reuters covers the Solengo imbroglio once more: “Solengo hedge fund threatens court action vs blog.”
• Solengo Capital seeks court order against DealBreaker!
• Download the controversial Solengo Capital brochure while you still can!
• Our first post on the Solengo brochure.
• Everything we’ve ever written on Solengo Capital.
• Got questions or comments for DealBreaker? Email us at tips(at)dealbreaker(dot)com.
Elsewhere: Reuters, Kedrosky, Romenesko, DealBook, Gawker, Weiss, Primak, Distad, Elfenbein.

Write-Offs: 03.30.07

$$$Daniel Gross thinks you should sell Goldman. [Slate]
$$$Trading less discerning than MLB. [Hedge Week]
$$$Lord Black doesn’t have a care in the world (other than winning this next round of beirut). [NYP]
$$$Wallstrip Chat: Michael Covel [WallStrip]

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captain.jpgRemember the good old days? When it was all khakis and royal blue ascots? Girls in exotic ports and Spanish brandy? Old Warren Buffett singing “Yo, ho, ho and a bottle of tums”?
According to Bloomberg the good times are over:

There was little cheer at Baltimore-based Legg Mason when Miller returned from his late-December sail. Miller says there was no buck-up message waiting for him from his boss, Raymond “Chip” Mason. Nor were there condolences from his friend Warren Buffett.

Bill Miller better get that fund back in gear or we’re never getting aboard the admiral’s ship again.
Bill Miller, Mired in Worst Slump of Career, Embraces AES, Tyco [Bloomberg]

Comments of The Week

RE: Hedge Fund To DealBreaker: Please Shut Up!
Anonymous: You guys are assholes. really. Just let them move on already. Why do you get pleasure in mocking people who are trying to get on with their lives?
RE: The Famed Solengo Brochure
Larry: I wish I could put money in this fund.He will do great. He is a great trader. Now that his ego has been checked his best days are ahead!!!!!!
RE: Solengo Imbroglio: A Plausible Theory
Percy Walker: Securities Law 101:
1. Fund Manager to Potential Investor to Media = OK (but lawyer will advise you to pretend like you give a shit that it was disclosed).
2. Fund Manger to Media = Not OK (Must “cool off” to continue with offering (up to 6 months if your lawyer is extremely anal and the disclosure particularly flattering)).
Old media trick: call manager to confirm that poor performance numbers you are about to publish are correct. Un-savvy manager will give actual performance numbers to avoid disclosure of unflattering info. and unwittingly force delay in its offering.
RE: Hedge Fund To DealBreaker: Please Shut Up!
anon: Did the Reuters article get your name wrong? I thought it was Bess Levin, not Beth Levin.
RE: Extorted Mystery Exec Solved!
Current PBG Employee: The IT dept should have caught Gary using the co computer for perv activities. They don’t seem too competent to me.
RE: Solegno Seeks Court Order To Strip DealBreaker Of Brochure
Bend5: I don’t know why their brochure didn’t include a picture of the guy holding a big fish?

  • 30 Mar 2007 at 2:31 PM
  • legal

Solengo Seeks Court Order To Strip DealBreaker Of Brochure

solengocapitallogo.pngLawyers for the hedge fund Solengo Capital say they will seek a court order barring DealBreaker from including its marketing brochure in our reporting. DealBreaker learned that Solengo will seek the order a few minutes ago when a a lawyer from Kobre Kim, which represents Solengo, called our Soho headquarters.
Solengo claims, through its lawyers, that DealBreaker’s coverage of the marketing materials infringes on the hedge fund’s copyright. DealBreaker believes that its use of the materials for news reporting purposes is protected as “fair use” under the copyright laws.
Solengo’s lawyers told DealBreaker they will seek a temporary restraining order against John Carney, Bess Levin, Elizabeth Spiers and “persons unknown” to prevent the continued publication of the brochure on the website.
Solengo Capital is a hedge fund started by traders from the collapsed Amaranth Advisors. It has reportedly been seeking capital from investors. Last night on CNBC’s “On The Money,” Charlie Gasparino said that he had heard much of the initial capital was coming from Saudis. The Solengo traders specialize in commodities, and are headlined by Brian Hunter, the energy trader whose bets on natural gas futures reportedly brought down Amaranth.
DealBreaker included the marketing materials as part of its reporting on the launch of the new fund. The quick return to the hedge fund world by traders associated with Amaranth has provoked interest and controversy. A combination of secretive habits and SEC rules intended to protect the public from predatory practices has meant that the public rarely gets to see the materials hedge funds use to promote themselves to their wealthy investors. The appearance of the brochure on DealBreaker’s website may be the first time many in the public have had a first-hand glimpse at the fund raising activities of a hedge fund.
A call to Solengo’s attorneys seeking further clarification went unreturned at the time of this posting.
This is officially getting exciting!
Update: Here is a link to the famed Solegno marketing brochure.

We received a call from Kobre & Kim, Solegno’s attorneys, demanding one last time that we remove the brochure. We once again declined. They informed us that they intend to seek the temporary restraining order this afternoon.

Read the latest Solengo Capital news on our special Weekend Update page!

bfeinhouse.jpgApparently Lloyd Blankfein wasn’t reading Dealbreaker the day we clearly laid out a bunch of alternative ways for the Masters of the Universe to spend their bonuses, back in January (the acquisition of, 2 million Jim Cramer bobblehead dolls, an all-access pass to the Andrew Ross Sorkin Pleasure Palace, and so on and so forth). Radar reports that the old boy has purchased a $41 million home in Southhampton (which apparently retails for such a sizeable chunk of change because it comes with a name: “Old Trees”), on First Neck Lane.
Spread out on 10.6 acres, the estate boasts a clay tennis court, an ocean-view swimming pool, 13 bedrooms, a “cottage” (with its own pool) and a “barn” for entertainment. Stephen Schwarzman couldn’t be reached for comment, because he’s in the midst of planning a surprise hostile takeover of the property. On a related note, Tom Hudson has just agreed to go in on a summer share in hell.
Sachs’ CEO Drops New Money on ‘Old Trees’ [Radar]

Jeffrey Epstein: Still Chasing It

jeffreyepstein.jpgRadar’s “Fresh Intelligence” reports that the billionaire money manager has been spotted in New York City, up to his old tricks.

The threat of jail doesn’t seem to be having much effect on Jeffrey Epstein. Earlier this month, a model ran into the billionaire playboy (and former Radar investor)—who is under felony indictment in Florida for alleged sex crimes—on Manhattan’s Upper East Side. The model asked what he was up to. Epstein’s bellowed answer: “Chasing pussy!”

A Dirty Old Man for a Dirty Job

  • 30 Mar 2007 at 12:47 PM
  • Banks

League Table Porn: Goldman Tops US M&A Advisers

deforest.jpgFewer transactions but bigger numbers in the US mergers and acquisitions market means the battle for league table placement in the quarter just ending was especially hard fought.
Goldman Sachswas the top adviser for US mergers, according to the research firm Dealogic, boosted by its role in the huge TXU buyout offer. It was followed by Morgan Stanley and JP Morgan Chase. While Dealogic’s tallies aren’t viewed as important as those assembled by Thompson Financial, you can bet there is some back patting and grinning over at Goldman this morning.
And maybe, just maybe, Lloyd Blankfein put a little extra sugar in his Styrofoam coffee cup this morning.*
*This whole Lloyd loves the Styrofoam thing was, as far as we can tell, made up by Bess Levin. Factual accounts of how Bankfein takes his coffee—if at all—are always welcome. Goldman could not immediately comment on this matter when contacted this morning.

Merger market unfazed by market volatility