Hedge Fund News Wrap: Week Ending 5/30/14

Pershing Square Capital Eyes Public Hedge Fund With $4B

Hedge fund manager, William Ackman, is seeking up to $4 billion for a publicly listed hedge fund vehicle.


According to FINalternatives, Ackman plans to list his offshore vehicle, Pershing Square Holdings, on the London Stock Exchange as a closed-end fund.

Currently, Pershing Square Holdings has $2.6 billion in assets, and the firm plans to list it when assets reach at least $4 billion.

Typically, hedge funds raise money privately. However, by publicly listing a hedge fund vehicle, Ackman would be preventing investors from filing redemption requests. Moreover, investors would be able to sell shares on a public market.

The New York Times DealBook reports that by restricting investors from filing redemptions, fund managers would be given more room to take losses and make long bets.


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Former SAC Trader Seeks Lighter Sentence in Insider Trading Case

Former SAC trader, Mathew Martoma, is seeking a lighter sentence after being convicted of insider trading. Prosecutors originally discussed sentencing him to a maximum of twenty years.

In a court filing on Tuesday, attorneys for Martoma argued that the former SAC trader’s conduct was less severe than that of others charged during the recent crackdown on insider trading. In particular, Raj Rajaratnam, the co-founder of the Galleon hedge fund, is serving 11 years in prison for insider trading.

The court filing also included hundreds of letters of support, including one from Martoma’s wife.

Martoma, who was convicted in February of this year, helped SAC avoid close to $275 million in losses while trading on insider information.

SAC Capital has been at the focal point of an insider trading investigation for years now, and the firm has pleaded guilty to insider trading and paid a record $1.2 billion fine to the federal government.

Martoma’s sentencing is set for June 10th.


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Man Group in Talks to Buy Numeric Holdings 

The British hedge fund, Man Group, revealed on Thursday that it is indeed in discussions to possibly buy Boston-based hedge fund, Numeric Holdings.

Numeric Holdings, which has $11.3 billion in assets under management, could be worth more than $430 million, according to an analyst from Espirito Santo Investment Bank.

“These discussions are ongoing and may or may not lead to a transaction,” said Man Group in a statement.

According to Reuters, Man Group has $55 billion in assets under management, and has restructured extensively after poor performance during the financial crisis.


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