One tale many love to tell about Richard S. Fuld, besides the one involving him destroying an 158 year-old institution, is that of the time he got into a fistfight at his son’s hockey game, with a parent from the opposing team. Though there have been many stories over the years of adults who lack impulse control throwing down at their children’s sporting events, perhaps people were fascinated by the fact that the the CEO of a public company was unable to reason that punching someone in the face at a Peewee hockey game (or anywhere in public? or anywhere period?) = bad, keeping your hands to yourself = good. On that note, one sports fan reports that Fuld has since matured, and realizing his own limitations, now travels with protection (for himself/spectators in his section). Read more »
Uncertainty Over Greece Weighs on Financial Markets (NYT)
Financial markets remained jittery Thursday amid concerns about the stability of the government in Athens, uncertainty over the fate of a second Greek bailout and suggestions by Ireland that it would require investors to pay for part of the bailout of its indebted financial institutions.
Paulson Funds Struggle as Big Bets Backfire; Gold Works (WSJ)
Mr. Paulson’s $9 billion Advantage Plus fund lost more than 13% in the early part of this month, through June 10, leaving it down 19.65% for the year, according to two investors briefed on the performance. The Enhanced Partners fund, which had been a big winner this year, lost nearly 7% in the first 10 days of June, and now is up less than 4% in 2011, according to the investors.
Referrals on SAC Disclosed (WSJ)
The SEC has received 65 referrals of suspicious trading at hedge-fund firm SAC Capital Advisors LP over the last decade, or 46 more than previously disclosed, according to Sen. Charles Grassley…Sen. Grassley, the top Republican on the Senate Judiciary Committee, said “many” of the referrals involved trades older than the five-year legal time limit on bringing civil actions for insider trading. The older trades “would not appear to trigger any concerns regarding ongoing investigations,” he said in a letter to SEC Chairman Mary Schapiro on Wednesday. SAC said it was “not surprised” that it has been the subject of 65 referrals since 2000. “Referrals by Finra are the result of surveillance of market-wide trading activity and they are neither findings nor allegations of insider trading,” a spokesman for SAC said in a statement. “Given the size of our firm, our active investment style, and the period covered, we are not surprised by the number of referrals. SAC has always cooperated fully with regulators and will continue to do so,” the spokesman said.
Falcone’s Venture Runs Into Static (WSJ)
The most recent evidence of complications surfaced this week in disclosures tied to a report expected to detail potential interference problems with the network…The report is expected to warn federal regulators that recent tests showed LightSquared’s network can knock out global positioning system, or GPS, receivers, according to people familiar with the report.
Och-Ziff May Profit From Market Turbulence (Bloomberg)
Daniel Och’s hedge-fund group bought options on almost $12 billion of U.S. stocks during the first quarter, a move that may generate profits if markets turn more volatile this year.
Wall Street Mind Meld: Obama Struggles? (Morning Money)
M.M. spoke with several senior Wall Street executives about recent efforts by the Obama campaign to reignite the financial industry support that generated a huge money edge over John McCain in 2008…One executive said he did not believe next week’s $38K per head event at Daniel had sold out, though another said that may have changed in the last few days.
Europe Faces ‘Lehman Moment’ As Greece Unravels (Bloomberg)
“The probability of a eurozone Lehman moment is increasing,” said Neil Mackinnon, an economist at VTB Capital in London and a former U.K. Treasury official. “The markets have moved from simply pricing in a high probability of a Greek debt default to looking at a scenario of it becoming disorderly and of contagion spreading to other economies like Portugal, like Ireland, and maybe Spain, Italy and Belgium.” Read more »
Yesterday having been a pretty slow day, most of you probably dealt with the boredom in the usual ways (dicking around on the internet, throwing a Nerf ball around with colleagues, untangling your phone cord, counting the number of steps from the bathroom to your desk, fantasizing about a life that doesn’t so closely resemble hell, etc). Adam Reasoner cut around 10:30 out to have shots taken on him at Madison Square Garden, after receiving a text from his brother, Marty Reasoner, that the team needed a practice goalie. Read more »
You can stop giving yourselves a hernia. Read more »
Gang, something serious happened. One of our favorite hedge fund managers is in trouble and needs help. Phil Falcone has been put in a horrible position, that I hope no one else ever finds him/herself. It’s a pretty well-known fact that the Harbinger founder is a huge hockey fan. The Minnesotan grew up skating, played as an undergrad at Harvard and pro in Europe for a year before being sidelined with a leg injury. He’s owned a forty percent stake in the Minnesota Wild for some time and recently acquired the Dubuque Fighting Saints. Falcone’s love of ice never posed an issue on the work at his hedge fund– until now. And it’s bad. Here’s the rub: Read more »
Still rocking the hockey hairAll things considered, Phil Falcone would prefer playing a professional sport that no one watches anymore to being a billionaire. So he’s done the next stupidest thing: He bought a hockey team.
Some of a hockey team, anyway. He’s got a 40% chunk in the Minnesota Wild, the team that replaced his hometown team after they moved to that great hockey city, Dallas.
A due-diligence specialist once told me that what he called jock-sniffer syndrome was one of his key red flags. But Falcone, who seems to have a thing for dying industries, bought his stake in the Wild for an altogether more pathetic reason.
Trouble in hedge fund land. Greenwich residents are terrified that would-be new neighbor, Russian millionaire Valery Kogan, will make them look bad (read: poor) by building a proposed 54,000 square foot mansion with two wings, “extensive” subterranean space, and room for up to 300 guests, which will clearly dwarf their own homes, relative shacks compared to the behemoth.
Though they claim their protests are merely matters of (a) taste (“`It looks like they want to duplicate the Winter Palace here in Greenwich,” said Leslie McElwreath. “It’ll be an eyesore.”), (b) safety (“This is a road where our kids learn to ride bikes, rollerblade, and people take walks,” said Morris Sachs, a trader at Brevan Howard.) and (c) not being summarily drowned while taking part in a pissing contest (“This is going to be a palace on a postage stamp,” Charles Lee said. “It’s too much.”), those intimately familiar with the gastrointestinal habits of SAC Capital Founder Steve Cohen know better.
Though never stated outright, the real problem with Kogan’s house is that it is slated to contain 26 toilets. And though it has many, many WC’s, Steve Cohen’s home does not have 26. Were Kogan to start building without making some edits first, he would not only be embarrassing Cohen in his own domain, he would be breaking a law, which the residents quoted by Bloomberg are trying to uphold. Section 182, clause 17 of the Greenwich town code clearly states that “no home shall exceed the number of waste-removal stations as are found at Casa Cohen.”
Interestingly enough, Cohen, who is not cited in the article, is said to have zero problem with any other aspect of Kogan’s dream home. “He could build a domicile three times the size of Stevie’s, with 40 master bedrooms to Steve’s 2, 16 refrigerators to Steve’s 12, and 2 ice rink’s to Steve’s 1,” a friend of a friend of a friend told DealBreaker. “It’s the toilets he cares about. Just the toilets.”
Empathizing with the big guy, CNBC on-air editor Charlie Gasparino commented that he “fully understands where Cohen’s coming from.” Pausing momentarily to enjoy a paper-thin slice of salami he’d cut moments earlier on the deli meat slicer he’d won in a bet with his local butcher, Gasparino added, “Bathrooms are extremely important to me. I live in a studio, but it’s got 4 cans. And I think that because so much of my identity is tied to my obsession with being ‘regular,’ I’d probably feel threatened if the guy next door had 5. I know it sounds crazy, but it’d be like I was less of a man or something.”