Chinese Government Harasses The U.S. And More Hedge Fund News of The Day 6/14/2012

by Staff Writer on June 14, 2012

Chinese Government Allegedly Harassing U.S. HF Researchers [eVestmentHFN] Chinese authorities are reportedly hounding researchers sent by U.S. hedge funds to look into possible fraud by Chinese companies trading on American exchanges. According to a Pittsburgh Tribune-Review article published this past weekend, two American hedge fund firms Absoroka Capital Management and EOS Holdings claimed that their employees in China were arrested and threatened with death by police or thugs.

HF Manager on Trial for Fraud [eVestmentHFN] A former hedge fund manager is on trial in a California federal court for allegedly swindling investors out of millions of dollars. The San Jose Mercury News reported that Albert Ke-Jung Hu faces seven counts of wire fraud for carrying out a scam over a seven-year period that convinced clients that his hedge funds, Asenqua Beta Fund and Fireside LS Fund, had returns of 20% to 30%, and were associated with respectable lawyers, auditors and others.

Allen Stanford Has No Idea What You’re Talking About [DealBreaker] “I didn’t run a Ponzi scheme, I didn’t defraud anybody, and there was never any intent to defraud anybody,” Mr. Stanford, wearing a green prison jumpsuit, told U.S. District Court Judge David Hittner before he was sentenced

BlackRock Talks Alternatives [eVestmentHFN] Remember the old slogan, “When E.F. Hutton talks, people listen.” BlackRock did as it gathered members of the media to hear various executives talk about the $3.7 trillion firm’s alternative investments. Its alt portfolio has $110 billion in assets under management includes hedge funds with $28 billion and fund of hedge funds with $19 billion. The press roundtable took place Tuesday at New York’s Pierre Hotel in conjunction with the firm’s client conference, which is not open to reporters, also being held at the hotel.

Vitro’s Mexican Bankruptcy Has New York Hedge Funds Screaming Caramba! [Forbes] A federal judge in Dallas will issue a decision as early as today that could determine whether Mexican glassmaker Vitro SAB pulls off what in the U.S. would be an almost impossible feat: Emerging from bankruptcy cleansed of $1.9 billion in debt, with its shareholder value largely intact. The prospect has outside creditors howling with rage, especially since they say Vitro’s bonds are governed by U.S. law and backed by guaranties from Vitro’s subsidiaries around the world.

New Partners in Fund Manager’s NBA Franchise Plan [eVestmentHFN] San Francisco hedge fund manager Chris Hansen’s effort to bring a NBA team back to his hometown of Seattle is gaining some major backers. The Seattle Times reported Wednesday that Hansen said in a letter to local officials that Microsoft CEO Steve Ballmer and two members of the Nordstrom department store family, Erik and Peter, have agreed to join the investor group he’s leading to attract professional basketball to the Pacific Northwest city as well as build a new arena for that team.

At Gupta Trial, a Glimpse at Goldman’s Inner Workings [DealBook] Wall Street watchers hoped that the inner workings of Goldman Sachs would be on display during the insider trading trial of Rajat K. Gupta, which begins closing arguments on Wednesday. The monthlong trial of Mr. Gupta, a former Goldman board member, did deliver on its promise to shed light on how Goldman conducted its business.

HF Manager on Trial for Fraud [eVestmentHFN] A former hedge fund manager is on trial in a California federal court for allegedly swindling investors out of millions of dollars. The San Jose Mercury News reported that Albert Ke-Jung Hu faces seven counts of wire fraud for carrying out a scam over a seven-year period that convinced clients that his hedge funds, Asenqua Beta Fund and Fireside LS Fund, had returns of 20% to 30%, and were associated with respectable lawyers, auditors and others.

Bernie Madoff Is Still The King [DealBreaker] Though it looked like Sir Allen Stanford might dethrone him with a recommended sentence of 230 years, the Ponz Master held onto the record for time behind bars for a Ponzi scheme when SAS was given 110 years, to Berns’ 150. Let this be a warning to you all– step into his den at your own risk.

Former Man Exec’s Hedge Fund Reaches $1B [eVestmentHFN] The onetime chief executive of London-based firm Man Group has seen his own hedge fund’s assets double in the past year. The Financial Times reported that Stanley Fink’s London-based ISAM saw its assets soar to $1 billion, despite initially struggling to raise capital and dealing with a volatile market in the past 12 months. The article also said that a gold fund set up by the firm was shut down due to lack of assets, and it was not until ISAM made several key hires from Man Group that ISAM began to raise more substantial capital.

 

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