Hedge Fund News Wrap: Week Ending 06/12/15

ECB’s Draghi Defends Private Meetings after Criticism of Hedge-Fund Dinner
(Reuters) – The head of the European Central Bank has defended a private discussion about money printing plans with a group of hedge funds, saying closed-door meetings with special audiences helped the ECB do its job.

Last month, the EU’s top watchdog or Ombudsman challenged the ECB over discussing sensitive plans for money printing with a group of hedge funds, giving them a headstart over investors who only found out the following day.

A top ECB official, Benoit Coeure, had said at a dinner in London attended by hedge funds, academics and bankers that the central bank would accelerate bond buying in the coming weeks.

When his speech was released on the ECB’s website the following morning, the euro fell sharply and stock and bond prices jumped, prompting investors to cry foul. The ECB blamed the delay in publication on an error.

Read the entire article at Reuters
More coverage: Wall Street Journal and The Financial Times

American Billionaire Takes on Samsung

(Bloomberg Business) – Paul Elliott Singer could not have picked a bigger fight in South Korea. The American hedge-fund manager said he would oppose a proposed merger within Samsung Group, thereby laying down a challenge to the country’s most powerful company and its richest family.

Predictably, all hell has broken loose. The local press has attacked Singer as a meddling pariah, casting doubt on his motives and advocating more protection for domestic companies. The Korea Economic Daily went as far as calling on regulators to investigate Singer for insider trading or other illegal activities, despite the absence of any evidence.

Yet the support for Samsung is hardly unanimous. Hundreds of minority investors are banding together to back Singer and, perhaps more importantly, the government has stayed neutral. The billionaire is doing more than raising questions about one deal: He’s set off a debate about the privileged position the industrial titans known as chaebol have held in Korea — and whether they should keep getting special treatment.

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

Meredith Whitney Says the Hedge Fund Chapter of Her Life ‘Is Over’

(Business Insider) – Meredith Whitney, the former Oppenheimer analyst who made a name for herself for some prescient calls during the financial crisis before trying her hand as a hedge fund manager, now says she’s finished managing money. “This whole experience has been highly unfortunate and I’m putting it behind me,” Whitney said in an interview with Fox Business on Wednesday.

Whitney launched her fund, Kenbelle Capital, in 2013. Then a fund connected with hedge fund BlueCrest Capital, the top investor in Whitney’s firm, asked her to return the $46 million they invested about two years after Kenbelle’s launch, and sued when she did not comply. BlueCrest dropped the lawsuit with the firm earlier this week.

Read the entire article at Business Insider
More coverage: ValueWalk and FINalternatives