$1.5 Million Sent in Error to Money Manager (Both Are Missing) (Dealbook)
Credit Suisse says it wired a total of $1.5 million in three transactions to the hedge fund’s bank account on one day in January. Two weeks later, according to its lawsuit, the bank realized it had made a mistake: At the time of the wire transfers, the hedge fund, Galbraith Capital Investment Management, was winding down operations and it had no cash left in its account with Credit Suisse. The bank asked for its money back. It is still waiting. The bank sued Galbraith Capital and its manager, Joseph B. Galbraith, seeking to recover the money. Credit Suisse filed a motion in a New York State court in August seeking a default judgment against Mr. Galbraith and the hedge fund. At a hearing this month, a New York State judge orally granted a judgment against the hedge fund but not against Mr. Galbraith, a person briefed on the matter said. Mr. Galbraith has yet to file a legal response in the case or be personally served with court papers. So now Credit Suisse is left to play a different game: Where in the world is Joseph B. Galbraith? People who know Mr. Galbraith, 42, who renounced his United States citizenship in 2011, say they think he is living with his second wife in Europe, possibly in Monaco. Reached by a reporter recently via email, Mr. Galbraith said he had not been aware of the Credit Suisse lawsuit. In an email, he said the accusations against him were “ridiculous, bordering on laughable” and part of an effort to malign and slander his character.
Investor Activism, Already Robust, Expected to Rise in Next Year (Dealbook)
…virtually all the senior corporate executives and activist hedge fund managers surveyed by the law firm Schulte Roth & Zabel and the data provider Mergermarket said they believed that activism would rise over the next 12 months. More than half said the increase would be “substantial.” The results, to be released at an activism conference hosted by Schulte Roth on Wednesday, signal the undiminished confidence in the power of outspoken dissident investors. Over the last year alone, activist shareholders have prompted management changes at Darden Restaurants, helped spur breakups at a slew of companies, and gained seats on numerous corporate boards. Recent data suggests that the success of activism campaigns has more than doubled over the last decade, to more than 70 percent.
Bad Bets Rock Fortress’s Macro Fund (WSJ)
The $3 billion Fortress Macro Fund, which Mr. Novogratz launched in 2002, has lost more than 9% so far this year, with half of that drop coming this month. It is the latest setback for macro funds, which seek to anticipate global economic shifts in various markets. The Fortress loss is worse than most others and stands out following years of market-beating performance. The culprit? A series of bad bets against U.S. government bonds and the Japanese yen, along with a wrong-way wager on Brazil, investors say.
Barclays bribed Saudi royalty: lawsuit (NYP)
Barclays bribed a member of the Saudi royal family and ignored a defaulted lease payment from the country in order to secure a rare banking license inside Saudi Arabia, a lawsuit against the bank alleges. The giant UK bank should have gone after the lease payment but chose not to because it didn’t want to anger the government and risk losing the lucrative business, according to the lawsuit, filed by a Saudi real estate company in Manhattan state court. “Barclays knew that any such license would be extremely lucrative and that its litigations against the Saudi government made obtaining such a license impossible,” according to the suit. The real estate company, Jadawel International, also claims Barclays paid millions in a “thinly disguised bribe” to a company owned by a Saudi prince for advisory services. Barclays strongly denied the accusations.
Suspected meth dealer turned in by own dog while hiding behind Alabama home: police (NYDN)
The suspected meth head managed to run out the backdoor and down a 25-foot ravine where officers temporarily managed to lose him. It was at that moment they were greeted by Henderson’s pit bull-husky mix who came out of the woods where Henderson had fled. “The dog, later identified as Bo, looked at one of the investigators and the investigator pointed at Henderson and said go get him. Bo without hesitation went down the ravine trailed by two Drug Enforcement Investigators,” the police department said in a release. While the two investigators weren’t immediately successful, Bo apparently was. Upon exiting the brush Bo tipped them off to some tall grass he was now hiding in, all by the swoosh of his tail. There with him they found Henderson lying flat on the ground. “Bo was rewarded with dog biscuits from our K-9 Sergeant,” the Prattville Police Department said. Read more »