Moore Capital

  • 04 Jan 2012 at 2:47 PM

Why Should A Swiss Central Banker’s Wife Get Punished For Being Able To Navigate The FX Market, Unlike *Someone* She Knows?

By Bess Levin

As you may have heard, Phillip Hildebrand, the President of the Swiss National Bank, is potentially in a bit of hot water today, on account of some trades made by his wife, Kashya. Apparently the Mrs. made three transactions last year that are being examined, particularly one that “appeared to benefit in part from the central bank’s aggressive move last September to control the rise of the Swiss franc.”

Late Tuesday, Ms. Hildebrand told Swiss television that in August she “was interested in buying dollars because the currency was at a record low, and in fact almost ridiculously cheap.” Ms. Hildebrand added that, having worked in the financial sector between 1984 and 1999, she was “always watching the markets” and “felt confident making this transaction.” She said she made a dollar purchase Aug. 15, when the U.S. currency was close to a record low against the Swiss franc. Two days later, on Aug. 17, the SNB decided to swamp the Swiss franc money market with liquidity, which prompted the franc to weaken. Then on Sept. 6, the SNB introduced a minimum exchange rate of 1.20 francs against the euro, an aggressive move that caused the dollar to gain 13% against the Swiss currency within a week.

According to an inquiry by PriceWaterhouseCoopers, the SNB’s auditors, Ms. Hildebrand, who has run a Zurich art gallery since 2001, sold francs and bought about $504,000. Ms. Hildebrand told Swiss television Tuesday that about 70% to 80% of all transactions at her art gallery are conducted in dollars and she therefore wanted to seize on the buying opportunity. The SNB’s general counsel was informed about the transaction around 12 hours later and gave his approval, she added. According to emails gathered during the PWC probe, Mr. Hildebrand learned of the transaction a day after it was conducted.

According to the Journal, Mr. Hildebrand “immediately” got on the horn with his client adviser at Bank Sarasin & Co, where the trades were made, and ordered that in the future, “currency transactions must be made only if he himself ordered them, or if he confirmed such an order.” Which, sure, probably seems like a good idea, in light of Hildebrand’s gig and the desire to not look like he was front-running Switzlerland. Having said that, apparently it was in the couple’s best interest to have Kashya overseeing their household finances. While the two were both hedge fund employees back in the day at Moore Capital (where they met in the ’90s), apparently one of them’s still got it, and one of them don’t. Continue reading »

  • 15 Feb 2011 at 1:43 PM

David Tepper, Louis Bacon Break Themselves Off A Piece Of Citi

By Bess Levin

Give it up for Vikram! Continue reading »

  • 29 Jul 2010 at 11:41 AM

Is Louis Bacon Attempting To Irritate And/Or Kill Bahamas Neighbors Via Annoying Soundwaves?

By Bess Levin

If you were going to (ALLEGEDLY!) try to murder someone, how would you do it? For those who’ve been searching in vain for a way that might not immediately reveal itself to the authorities, a pioneering hedge fund manager’s got a tip for you.

Police have allegedly confiscated four pieces of dangerous sound equipment from the Lyford Cay home of billionaire Louis Bacon. The speakers are said to emit certain frequencies of irritating and annoying soundwaves that could possibly stretch over a wide range. Further investigations revealed that if used properly, the speakers have the potential to cause structural damage and even death.

Continue reading »

  • 25 Mar 2010 at 11:28 AM

Are All Execution Traders Insider Traders Waiting To Happen?

By Bess Levin

According to Bloomberg, yes. As in the case of Moore Capital’s alleged little insider trader, Julian Rifat, who found the “look but don’t touch” rule too difficult to abide.

Rifat was an execution trader in the London office of Moore, a New York-based firm that oversees $15 billion. His job was to get the best prices for portfolio managers without telegraphing the firm’s buying and selling to rivals. He was taken into custody on his 41st birthday.

“By definition an execution trader sits near the money; he can smell the money, but he can’t touch the money,” said Jason Kennedy, chief executive officer of London-based executive- search firm Kennedy Associates.

For any managers hoping to avoid embarrassing headlines and nationally televised perp walks, a suggestion. At the end of each day, allow these guys to strip naked and roll around in the room where you keep the cash. Let them dive, Scrooge-McDuck style into the ball pit of gold coins. Let them rub it where the sun don’t shine. Let them tap that ass. Only when you remove the forbidden fruit aspect of it all will you be able to trust these guys.

In marginally related news, here’s some random info about Rifat. Haven’t yet figured out how it can explain his motivation but surely one of you can figure it out. Continue reading »

  • 23 Mar 2010 at 1:15 PM

Moore Capital London Office Raided, At Least One Employee Arrested

By Bess Levin

BBC:

The London-based hedge fund, Moore Capital, was one of the firms raided by the City watchdog the FSA, the BBC has learned. One person at Moore Capital and five other City workers are being held. Those arrested are suspected of taking part in a long-running insider-dealing scheme. The arrests came after 16 addresses were searched in a joint probe by the Financial Services Authority (FSA) and Serious Organised Crime Agency (Soca). Documents and computers were seized from premises in London, the South East and Oxfordshire. It is the FSA’s biggest operation against insider dealing.

Update: A suspect and statement from Moore, via the WSJ: Continue reading »