Some Of John Paulson’s Investors Are So Angry At His Gold Bets They Want Out [BusinessInsider] Closely followed hedge fund manager John Paulson, who famously bet against the subprime housing market in 2007, had a disastrous year during a volatile 2011 with some of his funds falling 30 to 50%. This year his Advantage funds, which invest heavily in gold, are in the red again. The New York Post’s Michelle Celarier is reporting that some of Paulson’s investors are so ticked off over his massive gold positions that they are considering leaving.
Galleon Partner’s Eyes ‘Popping’ After Trade, Trader Says [Bloomberg] After Raj Rajaratnam got what prosecutors say was an illegal tip about Goldman Sachs Group Inc. (GS), a partner at Galleon Group LLC who was excluded from the trade turned red-faced and angry, a witness at the Rajat Gupta trial testified. Prosecutors claim that Gupta, who was a Goldman Sachs director, tipped Rajaratnam on Sept. 23, 2008, that Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) would make a $5 billion investment in the firm. Gupta is on trial for securities fraud and conspiracy in Manhattan federal court.
Hedge Funds Expect to Benefit from JOBS Act [HedgeFund.Net] President Barack Obama’s signing of the JOBS Act may have given the hedge fund industry a boost for the future – if that’s possible for a $2 trillion global business. That’s because embedded in the legislation are provisions lifting the rule – dating back to the 1930’s – that bans hedge funds from soliciting or advertising to the general public. The Securities and Exchange Commission has 90 days from the signing of the act, or until July 5 to adopt final rules revising the solicitation rule.
Millbrook Capital To Close Hedge Fund, Focus On Founder’s Fortune [FINalternatives] Another hedge fund manager is getting out of the hedge fund business. Millbrook Capital Management is closing its only hedge fund and returning to its roots, as a family office for John Dyson, the former New York State commerce commissioner and private equity veteran. MMI Investments will return all outside capital by the end of next month.
HF Industry Figures Being Honored at Awards Dinner [HedgeFund.Net] Major players in the hedge fund industry will be honored at an event in New York City next month. Institutional Investor Magazine’s 10th Anniversary Hedge Fund Industry Awards Dinner & Ceremony will be held at the Mandarin Oriental Hotel on June 21, according to a website for the event. The award categories include Hedge Fund Consultant of the Year, Institutional Hedge Fund of the Year, Emerging Hedge Fund of the Year and Rising Stars of Hedge Funds, which represent outstanding up-and-comers in the industry.
After Facebook Fiasco, NYSE-Nasdaq Rivalry Heats Up [TWSJ] NYSE Euronext is seeking to capitalize on Nasdaq OMX Group Inc.’s role in Facebook Inc.’s bungled offering, renewing efforts to lure more stock listings to its exchange and persuade Nasdaq-listed companies to switch to the Big Board. A person familiar with the matter said NYSE had sounded out Facebook, exchanging “several emails” with the company, raising the possibility of moving to the Big Board. NYSE said that there haven’t been any discussions with Facebook, “nor do we think a discussion along those lines would be appropriate at this time.”