Hedge Funds

With its peso currency at record lows, foreign reserves down more than 5 percent over the last year and vast shale oil and gas resources laying undeveloped in its southern Patagonia region, Argentina is desperate to tap foreign financing. But the debt case, which stems from Argentina’s default on nearly $100 billion in sovereign bonds 12 years ago, is blocking its access to the international bond market. “Today we are in the hands of an international financial power comprised of small, voracious interests that form a real international mafia,” Jorge Capitanich, the Cabinet chief and government spokesman, told reporters in Buenos Aires. Many Argentines side with their government against a group of hedge funds that rejected the country’s 2005 and 2010 debt restructurings in which holders received less than 30 cents on the dollar. Holdout funds led by Elliott Management Corp and Aurelius Capital Management bought Argentine bonds at a discount before and after the 2002 default and have pressed their demand for payment of 100 cents on the dollar in the U.S. courts. [Reuters]

The last two years were just a warm-up. Read more »

For a lot of people in the banking industry, a non-compete is a nice little 3-6 month enforced vacation in between jobs. For Christopher Rokos, a co-founder of Brevan Howard, it’s a half a decade death sentence that will cause his trading hands and legs to shrivel up and break off, or at least become purely ornamental. Read more »

The short response: go fuck yourself. The slightly longer one: Read more »

Argentina is lacking in many things: Sufficient reserves to pay its bills, for one. International goodwill, for another. The patience of a certain very important federal judge. Goals in the World Cup.

But Argentina is also a very rich country: Rich in beef, in the fruit of the vine, in natural resources, and, perhaps above all, in unique recalcitrance vis-à-vis hedge funds it owes money. Well, in a last-ditch and almost certainly too-late bid to avert a default that it says is not a default, Argentina has parted with some of that precious recalcitrance, at last deigning to have its people chat with Paul Singer’s people about getting out of this mess with other peoples’ money and rights. Read more »

Remember, back in 2009, when Phil Falcone loaned himself $113 million from a gated investor fund to pay state and federal taxes? Initially his chief operating officer, Peter Jenson, had tried to convince the Harbinger Capital founder to borrow the money against assets like his townhouse, artwork, St. Barts estate, and interest in the Minnesota Wild.

Unfortunately for Jenson, Falcone decided he’d rather be banned from the securities industry than jeopardize his beloved hockey team and told the COO to look into the just-borrow-from-investors option, ultimately deciding it was the wisest idea. It was at this point that Jenson probably should’ve bowed out instead of going along with the plan, which he’s now paying for. Read more »

The day the Feds start listening to Ackman and shut down Herbalife will surely take the cake, but until then, this will have to do: Read more »