Billionaire hedge-fund manager Philip Falcone’s $18 million settlement with U.S. regulators that includes a five-year ban from the securities industry and an admission of wrongdoing was accepted by a federal judge. U.S. District Judge Paul A. Crotty in Manhattan today said in a written order that the agreement reached last month with Falcone and Harbinger Capital Partners LLC is “appropriate and proportionate to the defendants’ admitted wrongful conduct.” [Bloomberg, earlier, earlier]
hedge fund managers
Ken Griffin Strikes Fear Into The Hearts Of Citadel Employees With Long Pauses, Strange Coffee RitualBy Bess Levin
Do people who are naturally intimidating become hedge fund managers or does becoming a hedge fund manager make one intimidating? Psychologists have long looked for an answer and while the data has so far been inconclusive, years of research have given us some insight into the varying intimidation tactics– innate or by design– used at firms across the nation. You’ve got your hedge fund manager who intimidates the good old-fashioned way: by screaming at his employees and calling them idiots. The one who uses “indirect methods to get his message across” to subordinates like “retreating to his office and placing and opposing trade” or using an intermediary to hold discussions with colleagues who are sitting two feet away. And, of course, the ones who publish employee handbooks with lines like “Ask yourself whether you have earned the right to have an opinion.” And then there are the ones who can do it with just one look, a pregnant pause, and unnerving negotiation of milk froth. Read more »
Getting hit with an indictment when he had several thousand dollars worth of tuna in the fridge. Reading about his employees holding covert job interviews at rest stops along I-95. Being forced to beg his staff to stay, rather than the other way around. Having to explain himself re: the timing of $166 million art acquisitions. Watching his #1 fan abandon ship. And now this: Read more »
A Personal (Criminal) Matter
Common Sense Investment Management Not Sweating The Small Stuff (Its Founder Being Busted In A Prostitution Sting)By Bess Levin
Late last month, a guy named Jim Bisenius was surfing the web when he came across an advertisement for a prostitute. “I like prostitutes,” Jim probably thought to himself and proceeded to contact the woman at the number she had listed in the ad. Unfortunately for Jim, the ad turned out to be a decoy and the woman on the other end turned out to be a cop. Will this affect his criminal record? One would think so, yes. Will it affect his position at Common Sense Investment Capital, the firm he founded in 1991? According to CSIM, no.
For more than two decades, Common Sense Investment Management (CSIM) has brought superior risk adjusted returns to our investors and clients. CSIM’s success is about a team of committed and driven investment professionals; not one individual. Jim Bisenius’ recent personal transgression bears no reflection on this outstanding team of professionals or the quality of portfolio management at CSIM. Going forward, the firm’s partners have decided that Jim will remain in his role as Chief Executive Officer and Chief Investment Officer and he will deal with this recent event as the personal matter that it is. Our investment process and decision making will continue to be made by our investment committee, which is comprised of our President, four Portfolio Managers, Director of Operational Due Diligence, Director of Risk Management and myself. All management decisions continue to be made by the management team. We look forward to building on CSIM’s successful 22-year track record and creating value for our investors.
Relatedly, if you’re wondering if Jimbo is the type of guy who would define marriage as the union between one man and (at least) two women, the first being his wife, the second being the woman he thought was a hooker, the answer is come on, of course he is. Read more »
If This Hedge Fund Thing Doesn’t Work Out Whitney Tilson Has Realtor Gig To Fall Back On, With A Focus On High-End Rental PropertiesBy Bess Levin
Miss the boat on a Hamptons share this summer? Looking for a warm-weather getaway come winter? Desperately seeking a honeymoon suite that, if its walls could talk, would say “Whitney Tilson was here”? Today’s your lucky day. Read more »
If you took a random poll of family, friends, colleagues, and strangers on the street, asking them how they’d feel about going to prison, the majority if not all of them would probably say, “Not good.” For most people, prison is a place to steer clear of, for all the reasons you can think of (living in a cell, isolation from the outside world, bad food, low paying jobs, daily risk of sodomy) and probably some you can’t.
Not too long ago, hedge fund manager Raj Rajaratnam counted himself among those who for whom jail time was something to avoid (if not by being an upstanding, law-abiding citizen than by hiring a high-priced attorney to try and get him off after being charged with 14 counts of conspiracy and securities fraud). But now? After having served 21 months of his eleven-year sentence? Raj can honestly say that this prison is great.
And not because hard time forced him to take a serious look at his life or to think about what he’d done or change himself for the better or any of that metamorphosis type crap, but because minus the not being allowed to leave the grounds rules? Raj’s life in prison is arguably better than his life on the outside, which did not include servants or a 34 inch waist. Read more »
Hedge Fund Manager Will Have To Dig A Little Bit Deeper To Get The Basement Pool/Spa He’s Always Dreamed OfBy Jon Shazar
Polygon Investment Partners’ Reade Griffiths is feeling a little bit cramped in his adjoining townhouses in the Royal Borough of Kensington and Chelsea. An extra 10,000 square feet or so—complete with a pool and spa—should do the trick.
Unfortunately for the claustrophobic Mr. Griffiths, he’s going to have to pay a 20% “house the poors” tax to get permission to actually build the £4 million, two-story lair, which through the magic of real-estate will turn into £10 million in added value. It is unclear what Reade’s £825K will actually be used for, since there are not any poor people in the Royal Borough of Kensington and Chelsea. Read more »