Inside these posts: hedge funds

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Citadel closes $200M mortgage fund

Citadel LLC, the $11 billion hedge fund run by Ken Griffin, shut its residential mortgage funds after portfolio manager Bill King left the Chicago-based firm, Bloomberg News reported Wednesday, citing three people familiar with the situation. Get the full story »

Northern Trust to buy Citadel unit

Chicago-based Northern Trust Corp. has agreed to buy hedge fund manager Citadel LLC’s fund administration business, Omnium LLC, a person familiar with the situation said Thursday. The value of the deal was not known. Get the full story »

Judge clears way for Blockbuster sale

A judge Thursday cleared the way for movie-rental company Blockbuster Inc. to sell itself to a group of hedge funds, after lawyers spent all day in courthouse hallways brokering a deal with movie studios that had objected to the sale terms. The ruling gives the movie studios a better deal and staves off immediate liquidation of Blockbuster’s assets. Get the full story »

Hedge funds seen taking in $210 billion in 2011

Hedge funds around the world are expected to attract $210 billion in new money this year, according to a survey by Deutsche Bank released on Monday, helping to set a fresh record for assets.

The increase of new money — roughly four times the amount added last year — plus performance is expected to increase industry assets to $2.25 trillion by year’s end, data from the bank’s ninth annual alternative investment survey shows.

Hedge Fund Research, a Chicago-based performance and asset tracking group, said the loosely regulated industry oversaw $1.92 trillion in assets at the end of 2010. Get the full story »

Citadel in big E*Trade sale, hits broker’s stock

E*Trade Corp.’s largest stakeholder, hedge fund Citadel, is moving to sell nearly 24 million shares in the U.S. online brokerage, sending E*Trade shares down 5.9 percent on Thursday.

A Citadel Investment Group affiliate launched an underwritten offering, set to close March 1, that would reduce the Chicago-based fund’s stake to about 18 percent of E*Trade, from about 27 percent currently, according to a regulatory filing late on Wednesday. Get the full story »

U.S. flash crash panel calls for market overhaul

U.S. regulators should stem the growing tide of anonymous stock-trading and consider charging high-frequency traders fees for the disproportionate amount of orders they send into the marketplace, said a panel of experts advising how to avoid another “flash crash.”

The report laying out 14 recommendations for the Securities and Exchange Commission and Commodity Futures Trading Commission contains some fresh ideas. Taken together, they would significantly overhaul the high-speed market that has gone increasingly electronic in the last decade. Get the full story »

Northern Trust seen as ’safe’ bank during crisis

Northern Trust Corp. Chief Executive Rick Waddell said last week that during the early days of the 2008 financial crisis, his Chicago-based company’s main bank branch alone took in $90 million a day in deposits, up from an average of $2 million a day. Get the full story »

Citadel hires CEO of New York’s Chapdelaine & Co.

From Bloomberg News | Chicago-based firm Citadel LLC has hired the CEO of New York-based bond broker Chapdelaine & Co. and plans to add about 30 employees from Chapdelaine’s defunct credit unit.

Smurfit-Stone shareholders oppose Rock-Tenn deal

A group of hedge funds that owns a combined 9 percent stake in Smurfit-Stone Container Corp. said it would vote against Rock-Tenn Co.’s $3.5 billion deal to buy the packaging and paper company.

Third Point, Royal Capital Management and Monarch Alternative Capital said in a letter to Smurfit-Stone’s board on Wednesday that the company could go it alone and shareholders would be better off. Get the full story »

SEC seeks status reports from fund managers

The Securities and Exchange Commission issued draft proposals Tuesday to require hedge fund and other private fund advisers to file periodic reports with regulators seeking to assess threats to the financial system. Get the full story »

JBS is back in the hunt for Sara Lee, source says

A group of companies led by Brazilian beef processor JBS has arranged a financing package to bid for all or parts of Sara Lee Corp. , a source with direct knowledge of the situation told Reuters Thursday.

The group won commitments from international banks for loans and could tap equity markets to complete the funding package, said the source, who declined to be cited by name. Get the full story »

Hedge fund industry assets swell to $1.92T

Hedge fund assets grew a record $149 billion during the last three months of 2010, according to new data released Wednesday. According to Hedge Fund Research, which tracks industry performance and asset flows, hedge funds around the world now invest $1.917 trillion. Get the full story »

Citadel delivers 10% gain on 20th anniversary

Hedge fund firm Citadel, one of the world’s biggest, returned 10 percent to its investors this year, more than double what its peers earned on average.

The Chicago-based firm’s flagship Kensington and Wellington funds climbed about 10 percent, according to a person who has seen the numbers but was not allowed to discuss them publicly. Get the full story »

Source: Hedge funds may skirt direct Fed scrutiny

The Federal Reserve does not believe any one hedge fund can topple the financial system and therefore the private pools of capital may escape direct supervision by the central bank, an industry source familiar with the Fed’s position said. Get the full story »

FBI charges 4 in insider trading crackdown

Three employees at public companies and an executive of an expert-networking firm on Thursday became the latest to be charged in a wide-ranging Wall Street insider trading probe.

James Fleishman, 41, of Santa Clara, Calif., the networking executive, was charged with wire fraud and conspiracy for providing confidential information to the firm’s clients, including hedge funds, U.S. Attorney Preet Bharara said. Get the full story »