Hedge Fund News Wrap: Week Ending 05/22/15

Top U.S. Hedge Funds Continued to Dump Apple amid Rally
(Reuters) – Top U.S. hedge fund management firms, including Leon Cooperman’s Omega Advisors and Philippe Laffont’s Coatue Management, continued to reduce or slash stakes altogether in Apple Inc (AAPL.O) during the first quarter, as shares of the iPhone maker rallied.

According to regulatory filings released on Friday, Coatue cut its holding of Apple by selling 1.2 million shares during the first three months of this year, but it remains the fund’s single biggest U.S. stock investment, with 7.7 million shares. Omega Advisors sold all of its 383,790 shares in Apple during the first quarter, while Rothschild Asset Management cut its stake by 107,953 to 938,693 shares, filings showed on Friday.

David Einhorn’s Greenlight Capital also cut its exposure in Apple during the first quarter, slashing its stake by 1.2 million shares to 7.4 million shares.

Read the entire article at Reuters
More coverage: Business Insider and HedgeCo

Hedge Fund Vultures to the Rescue in Puerto Rico

(Bloomberg) – In some countries—Argentina, for example—hedge funds are seen as the worst of the worst. But in Puerto Rico, at least to date, they are perceived in some circles as the last, best hope. The mainlanders are offering their restructuring expertise and potentially billions of dollars on the expectation that a serious investment of time and money will pay off in a healthier Puerto Rico that’s able to pay everything it owes (and make them richer).

“The ideal is that we don’t let it degenerate into the kind of tense relationship where everybody’s yelling at each other. We’re taking every effort to avoid that,” says Stephen Spencer, a managing director in the financial restructuring group of investment bank Houlihan Lokey, which represents both hedge funds and big bond funds that owned Prepa bonds before prices fell. “In any restructuring that works well, you have creditors and debtors rowing in the same direction.”

Read the entire article at Bloomberg Business
More coverage: Reuters and The Financial Times

Shares in FX Firm Plus500 Plunge as it Suspends Some Accounts

(Reuters) – Shares in retail FX trading shop Plus500 shed around a third of their value on Monday after the firm, a sponsor of Spanish soccer team Atletico Madrid, said some clients’ accounts had been suspended as it sought to meet money laundering rules.

Plus500, which runs most of its operations from Israel but has its official headquarters in London, said in a statement on its website that the restrictions would remain in place until it completed a review of the documentation and information it holds on its customers.

London-based hedge fund Odey Asset Management is the top external shareholder in the firm with almost 13 percent, according to Thomson Reuters data, while JP Morgan Asset Management holds a 6 percent stake.

By 1430 GMT, shares in Plus500 were down over 33 percent, on track for their biggest daily fall in the firm’s history.

Read the entire article at Reuters
More coverage: Business Insider and The Financial Times