hedge fund managers

Those of you who keep close tabs on Texas hedge fund manager James Dondero know that he has been battling his ex-wife Becky Dondero over how much money he owes her for some time now. Complicating things slightly is a related suit/countersuit involving a former Highland Capital Management employee , Patrick Daughtery, who was sued by Dondero after he testified on behalf of Becky, claiming that over drinks, his boss told him he planned to “get his net worth down and pay her as little as possible.” In the suit, Dondero claimed that Daughtery made the story up to get back at Dondero/Highland for compensation that was never paid out, in addition to alleging that that Daugherty had suffered brain damage. Anyway, jury selection for the Dondero/Daughtery trial started yesterday, and the judge presiding over the case is not gonna lie: he’s looking forward to the juicy details. Read more »

No one took a bite at $115 million but at 98, this thing’ll practically sell itself! Read more »

“It is not the role of Herbalife’s auditor to determine if the company is a pyramid scheme. Rather, that determination depends on whether distributors earn more from recruiting new distributors than from retail sales to consumers who are not distributors. The few Herbalife distributors that make money earn the vast majority of their profits from recruiting. Herbalife is a pyramid scheme that will be shut down by regulators.” [Earlier]

Billionare David Tepper’s hedge fund firm, Appaloosa Management, celebrated its 20th anniversary in 2013 and it’s turning into a year to remember for the former Goldman Sachs trader. Tepper’s big Palomino hedge fund posted net returns of 37.86% through the end of November…The Standard & Poor’s 500 index returned 29.1% this year through November. [Forbes, Related: David Tepper Has A Message For Jon Corzine]

  • 06 Dec 2013 at 6:09 PM

Christmas Come Early For John Paulson

Billionaire hedge-fund manager John Paulson posted gains in his firm’s main strategies in November, in part from an investment in Extended Stay America Inc., according to two people familiar with the matter. Paulson’s event-driven Advantage fund surged 13 percent in November and 30 percent this year, said the people, who asked not to be identified because the information is private…Paulson Partners Enhanced Fund, the leveraged version of the firm’s merger-arbitrage strategy, gained 2.3 percent in November and 28 percent this year, the people said. Paulson Partners increased 1.2 percent last month and 16 percent year-to-date. The Recovery Fund, which seeks to benefit from growth in the economy, is the firm’s best-performing strategy in 2013. The fund rose 6.5 percent in November, bringing returns since the start of the year to 55 percent, according to the people. The Paulson Credit Opportunities Fund increased 3.2 percent last month, bringing returns for 2013 to 20 percent, the people said. Paulson’s Advantage Plus fund, which seeks to profit from corporate events such as takeovers and bankruptcies and uses leverage, rose 6 percent in November and 28 percent this year, according to the people. [Bloomberg]

Bill Ackman Actually Pretty Good At Running A Hedge Fund

He’s up 10%, in spite of, you know, those setbacks. Read more »

  • 02 Dec 2013 at 11:52 AM

Donald Trump Discovers Pre-Nup He Doesn’t Like

The hard-charging wife of Dallas hedge-fund mogul James Dondero is proving to be as relentless as her husband in their epic divorce battle. Rebecca “Becky” Dondero, 32, plans to try a novel legal tack to get her estranged husband to cough up more cash than a $5 million prenuptial payout, according to sources. Last month, a Dallas state court jury determined that Becky was not entitled to more money under family divorce proceedings. At the trial, each argued that the other had violated terms of their prenup. The jury decided that both sides had breached the agreement but that it would remain in effect. A new trial is set for June 9 to decide if Becky is entitled to the full $5 million. To get around the maximum, however, she is preparing to claim under general contract law — as opposed to family law — that she is still entitled to damages because the jury determined that he breached the prenuptial contract, sources said. “Ms. Dondero’s demands over two years of negotiation varied between four and eight times the amounts stipulated in the prenuptial agreement and culminated in her filing 11 separate motions to invalidate the prenuptial agreement,” James Dondero said in the statement. Meanwhile, Becky, who declined to comment on the case, has a surprising ally. Donald Trump — no stranger to divorce court — sent her a note wishing her well and making it known that he was no fan of her husband’s, sources said. [NYP, earlier]

Pershing Square’s Bill Ackman appeared on Bloomberg Television for an hour today from the Robin Hood Investors Conference in New York, telling Bloomberg TV’s Stephanie Ruhle that he’ll take his Herbalife bet “to the end of the earth” even as he has lost $400-$500 million on the investment. He also said that Herbalife longs are all 80-year old billionaires. Carl Icahn responded to Ackman in a conversation with Bloomberg TV’s Trish Regan, saying: “I fail to understand how Bill Ackman, whom I haven’t spoken to for years, nor do I intend to speak to, would know what I am or am not committed to. I continue to believe Herbalife has a great future, and in my opinion many of the things Ackman says about it are simply the rantings of a sore loser…Interestingly there is something that Ackman and I have in common. Ackman complained at an Oxford conference that every time I went on TV and mentioned Herbalife, the stock went up a few points. Well, that’s also true of him.” Read more »