March 30, 2007 |
The National Football League and the NFL Players Association lost a bid to dismiss a lawsuit by players claiming the organizations recommended unfit financial advisers and caused them to lose $20 million. A federal judge in Atlanta ruled yesterday that former Denver Broncos defensive back Steve Atwater and six other players may proceed with their case over lost investments. They sued in June after the operator of the hedge fund International Management Associates LLC, recommended to them by the league and the union, was arrested for cheating investors.
November 3, 2006 |
Gartmore Global Investments could be split in two as its Ohio owner, Nationwide Mutual Insurance Co., considers shifting most of the West Conshohocken mutual-fund family into a publicly traded subsidiary. Gartmore, whose European hedge-fund operation was sold in September, employs 275 people, and has about $46 billion under management, spread among retail and institutional clients. People familiar with the matter said local Gartmore executives have proposed a management-led buyout of its $7 billion actively managed mutual-fund business, which those people said Nationwide does not want.
September 23, 2006 |
Philadelphia's pension fund has spread its bets - just in time to take a small hit on the latest hedge-fund blowup. Four of the eight hedge-fund-management firms that the City of Philadelphia's pension board hired in the last year invested a total of $8 million in Amaranth Advisors L.P. Connecticut-based Amaranth warned clients this week that it may have lost 65 percent of its $9 billion in customers' investments due to bad bets on the price of...
September 21, 2006 |
State pension funds in Pennsylvania and New Jersey are among the U.S. investors bracing for losses due to bad bets on natural-gas futures by Amaranth Advisors L.L.C., one of the nation's largest hedge funds. Amaranth, which managed about $9 billion, told investors earlier this week that it expected losses of more than 35 percent because of a drop in natural-gas futures that took its trading desk by surprise. The loss is a black eye to the secretive hedge fund industry, which has boomed in recent years.
August 9, 2006 |
A Miami hedge fund plans a $115 million initial public offering for Claymont Steel Holdings Inc. and would use the proceeds to reduce debt used largely for dividend payments to itself. H.I.G. Capital bought Claymont Steel, formerly CitiSteel USA Holdings, in June 2005 for $75 million. Since then, according to an IPO prospectus the company filed with the Securities and Exchange Commission, it has paid itself $183 million in dividends, financed largely through issuing debt. The bulk of the debt, $172 million in junk bonds, is due in 2010.
August 4, 2006 |
Pep Boys - Manny, Moe & Jack, the ailing Philadelphia auto-parts retailer, said yesterday that it had appointed four new directors to its board. Barington Capital Group, a New York hedge fund that owns almost 10 percent of Pep Boys' stock, nominated the new directors and now controls four of 10 board seats. Former Pep Boys chief executive officer Larry Stevenson resigned July 18 under pressure from Barington. The company hired him in 2003 to revive the chain. The Canadian executive spent tens of millions of dollars revamping Pep Boys' 593 stores in 36 states, but improvements did not come fast enough for Barington.
January 18, 2006 |
A Boston hedge fund participated in an illegal scheme to drive down the share price of American Business Financial Services Inc., according to the bankruptcy trustee who is liquidating the former Philadelphia mortgage lender. Boston Partners Asset Management L.L.C. sent anonymous letters and posted Internet comments in a "vicious pattern of conduct" to damage ABFS, Trustee George L. Miller alleged in a civil lawsuit filed Dec. 30 in federal court in Wilmington. Cynthia Perl, a spokeswoman for Boston Partners' parent, Robeco Investment Management Inc., would not comment on the lawsuit.
January 7, 2006 |
The hedge-fund industry has achieved considerable success selling investments designed to make money no matter how the stock market fares. So far, the relative handful of mutual funds using hedge-fund strategies has not made market inroads, although that could change. These funds will be easier to identify next month after Morningstar Inc. creates a new category for them in the Chicago firm's influential rankings. That is good news for Richard J. Gates, a portfolio manager at TFS Capital L.L.C.
December 2, 2005 |
Millennium Partners L.P., a $5 billion hedge-fund company accused of improper mutual-fund trading, will repay $121.4 million in "ill-gotten revenues" under an agreement with New York and federal authorities, New York Attorney General Eliot Spitzer said yesterday. In addition, Millennium's founder, Israel Englander, 57, will pay $30 million, and two management companies will pay a total of $26.6 million. The combined $178 million will go to mutual-fund shareholders. "It dwarfs the size of any disgorgement I've ever seen in the hedge-fund arena," said Scott Berman, an attorney at Friedman Kaplan Seiler & Adelman L.L.P.
November 7, 2005 |
Here's what some of corporate America's biggest investors are saying about the CEOs who work for them: Time Warner Inc. chief executive officer Richard Parsons has "a dismal record of mistakes" and "bloated" spending, and his board should be replaced. Sovereign Bancorp Inc. chairman Jay S. Sidhu and his board have "become the model of poor, autocratic corporate governance," and should put Sidhu's "dubious" plans for the company to a shareholder vote. Knight Ridder Inc. chairman P. Anthony Ridder and his board have "failed to achieve" even average results, and should step aside to let shareholders approve a potential sale of the company.