Hedge Funds

Told you I was good for it.Courtesy of Big Steve and your friends at SAC Capital Advisors Point72 Asset Management, via the SEC and the federal courts. Read more »

This may or not be the Lawrence Herzing in question, but you must admit it's a fetching Christmas tree.Over the past 10 years, Lawrence Herzing needed a few extra bucks. Certainly, in those turbulent times, he was not alone. But he was controller of a $4 billion hedge fund, which gave him somewhat ready access to those extra bucks, access which he allegedly used 32 times to the tune of $12 million. While this undoubtedly helped Herzing’s cash-flow problems, it also has the drawback of being quite illegal, as Herzing discovered when a couple of FBI agents showed up at his $2.6 million Greenwich home with a pair of handcuffs. Read more »

Get Cliff Asness A Job On Madison Avenue

What you should look for in your hedge fund managers.The AQR chief sure knows how to sell his industry, and is now continuing his somewhat less-than-full-throated “Hedge Funds: They’re Alright, I Guess” campaign on his own website. To sum up his masterpiece, “Hedge Funds: The (Somewhat Tepid) Defense”: Most hedge funds are crap and you should probably just invest in an index fund. But if you can find yourself a non-crap hedge fund manager—one C. Asness comes to mind—you’re probably better off with him or her. Either way, the most common criticisms of the industry are pretty off-base, and as such, can be added to the Asness Menagerie of Peeves. Read more »

Herbalife Exec Not Too Worried About FTC Probe

The diet shake and supplement company CFO is pretty sure the Herbalife name will be cleared. Read more »

Don't get too comfortable, Mel.The embattled Yahoo! chief, in the wake of the first good news she’s gotten in the past two years, told activist hedge funds where to stick it this week. Well, one such hedge fund manager is returning the favor. Read more »

Gotta do what I gotta do.John Paulson has a problem: He took a huge bath when AbbVie decided not to buy Shire because, even though it was ready to pay $54 billion for the company, the Irish pharma was basically just a tax shelter to Shire, and of the sort that is no longer kosher in the precincts of the U.S. Treasury Department. Now, John Paulson is Shire’s third-largest shareholder, and 30% drops in a company in which one is the third-largest shareholder are the kind of thing likely to produce something approaching panic in a hedge-fund manager.

John Paulson also owns a lot of Allergan shares. You may have heard of Allergan, either because it makes Botox, or because Bill Ackman talks about it a lot.

John Paulson has been listening closely to what Bill Ackman says about Allergan, which is that the company should take Valeant Pharmaceuticals $53 billion (or more?) offer and that if it doesn’t, he’s going to throw out its entire board and make Allergan take the deal. And John Paulson likes that plan. He likes it a lot. But he’d like it even more if all of those Shire shares he owns would one day be worth as much as they were when he bought them, all of those months ago, when tax inversions were the order of the day. And he has an idea on that front… Read more »

If CalPERS Is Doing It, It Has To Be Good

lemmingsThe California Public Employees’ Retirement System insists that it’s not firing all of its hedge funds because they aren’t worth the 2%, let alone the 20%. But its fellow pension funds, none of whom are CalPERS in terms of size or in-house capabilities, noticed a very clear nod-and-wink in their direction. And so, having followed the herd into alternatives, they’re now forming a new herd to abandon them. Read more »