Hedge Funds

Dan Loeb’s Agenting Skills Eclipse His Investing Ones

No regrets.A few years ago, Chris Kyle, the decorated sniper, taught the Third Point founder how to shoot. The two unlikely buddies met through Loeb’s fellow hedge fund manager, Kyle Bass, where Chris Kyle served as houseguest and shooting instructor, because all hedge fund managers should have live-in shooting instructors. In any event, Loeb took a shine to young Kyle, especially after reading his book, American Sniper. Loeb thought it would make a great movie, and so it has, at least according to the Academy of Motion Picture Arts and Sciences and the moviegoers who have spent $250 million to see it over the past month.

Dan Loeb could have had a piece of that impressive action: For introducing Kyle to a high-school buddy who produced the movie, Loeb had a chance to invest $250,000 in it. He chose to invest a more modest sum in Kyle’s tactical-training company—which has not produced quite the same returns. Read more »

carl icahn brett icahnJunior really proved himself with that Netflix call. The days of “Sorry, Mr. Icahn, I didn’t realize you were on a call” and “I’m sorry, sir, I’ll make sure I keep my office more organized when investors visit” and pretending they hadn’t seen each other over the weekend at his cousin’s bar mitzvah may soon be over. Read more »

The justification for my position is here somewhere, and I'm going to find it.

The justification for my position is here somewhere, and I’m going to find it.

He took his time, mulled it over, considered his life choices, worked on his grief, pondered the criticisms and looked the awful, no-easy-insider-trading-convictions future in the face. It is a future the Manhattan USA isn’t ready to accept just yet.

Prosecutors will ask a full panel of the Second U.S. Circuit Court of Appeals to review a decision three of its judges made in December that put new limitations on prosecutors’ ability to pursue insider-trading cases, according to a spokeswoman in the U.S. attorney’s office….

If the request is rejected, or if the court accepts it but doesn’t overturn or modify the decision, prosecutors could still appeal to the Supreme Court, a move that would also require sign off from the Justice Department.

The ruination of the life and work of Preet Bharara is, of course, bad news for Preet Bharara. It is also bad news for the Securities and Exchange Commission, which has spent the better part of six years letting Preet’s boys at the U.S. Attorney’s Office do its work for it, and then rushing to a neighboring courtroom to win a quick judgment against the evildoers whose evil, it seems, may no longer rise to the level of criminal. Also understandably, they would prefer that easy route remain open to them. Read more »

Can't say enough good things about this guy.

Can’t say enough good things about this guy.

Raw performance figures failing to adequately capture the scale of Ackman awesomeness for you? His status as an autograph-signing celebrity still not quite illustrative enough? Require, perhaps, a dollar figure? Or a ranking that shows the Pershing Square chief taking his rightful place among the GREATEST HEDGE FUND MANAGERS OF ALL TIME? We can do that for you. Read more »

steve cohenAt some point last year, after he had settled insider trading charges against his firm, the hedge fund formerly known as SAC Capital, Steve Cohen began exhibiting signs of man who felt, if not contrite, than contrite-lite. He agreed to rename his company, stripping his initials from all letterhead, fleece, and signage. He started paying employees to not commit securities fraud. And, most significantly, he agreed to only manage the money of people related to him by blood or marriage, returning billions of dollars to investors, and kissing a whole lot of would-be fees good-bye.

But now? Possibly/probably emboldened by the December appeals court ruling that knocked his No. 2 nemesis, Preet Baharara, down several pegs and officially made it harder for prosecutors to convict people of insider trading? He’s all but finished playing the part of a guy who feels bad about running a firm described as a “veritable magnet for market cheaters.” Not only is he no longer taking orders from Preet, the Feds, of the SEC, but he’s thinking maybe it’s about time he started giving them out. Read more »

No One Trashes Louis Bacon For 10 Years And Gets Away With It

Ready to wipe that smile off his face.

Ready to wipe that smile off his face.

For a decade, Moore Capital Management founder Louis Bacon has endured smear after smear on the part of his Bahamas neighbor, Canadian fashion mogul Peter Nygard: That he’s a racist, and possibly even a top-secret Grand Wizard of the KKK. That he’s a narcotics kingpin. That he’s trying to take over the government of the Bahamas. That he tried to burn Nygard’s somewhat less-than-tasteful Lyford Cay estate to the ground. That he’s employed “military-grade” loudspeakers to try to kill him, or at least to annoy him. That he has actually killed someone else. All because he’s either (a) trying to protect the exclusive enclave’s fragile ecosystem from Nygard’s planned 150,000-square-foot Mayan-style personal resort or (b) because he’s trying to force Nygard out of the Bahamas so that he can have Nygard Cay all to himself.

Well, Bacon’s finally had enough, and wants Nygard to cough up $50 million—coincidentally, the budget for the reconstruction of Nygard Cay following the fire that Bacon’s underlings set mysterious blaze in 2009 that destroyed the place—for saying all that stuff. Read more »

lucarelliThe 52-year-old said his inside trading was fueled by drugs and resentment of the Midtown firm, which he said owed him money on commissions. “I didn’t take the drugs to get high, I did it because I can’t drink coffee — that’s a painful trip to the bathroom,” Lucarelli said…Lucarelli, occasionally tearing up, now lives in North Dakota with his brother and says he hopes to become a truck driver. “The one thing about trucking, you’re urine tested all the time,” he said during a 20-minute statement. “If you’re a good driver, which I am, they don’t care about insider trading.” [NYDN, earlier]

George Soros Is Feeling A Little Blue

Don't sulk, George.George Soros has been spotted in one of his natural habitats, a certain Swiss ski resort in late January. But have these days in Davos brought a smile to the 84-year-old’s face? The parties, the hob-nobbing, the receipt of genuflections that he lives for? Have they hell. If anything, they’ve turned him into fellow Davos man Paul Singer. For all George Soros wants in his declining years, in addition to a wife half his age, is some fun in the markets, an opportunity to do one last great thing that makes him an Alp-sized pile of money. In this, George Soros fears he is to be disappointed. Read more »