Monday, 20 October 2014
Last updated 2 days ago
Mar 1 2010 | 3:49am ET
Appaloosa Management is none too happy with the plans to foreclose on two giant Manhattan apartment complexes, and is demanding a say in the proceedings.
The $12 billion Short Hills, N.J.-based hedge fund last week asked a federal court for permission to intervene in the matter of Stuyvesant Town and Peter Cooper Village. The hedge fund, which owns bonds backed by about one-quarter of the $3 billion in mortgages on the sprawling complexes, said the management company acted “irrationally and imprudently” in pushing for foreclosure, and accused CW Capital Management of having “irreconcilable conflicts of interest.”
According to Appaloosa, CW should have pushed for bankruptcy for the joint-venture—between real estate giant Tishman Speyer Properties and BlackRock Realty—that paid $5.4 billion for Stuy Town and Peter Cooper Village in 2006. The route they chose instead, foreclosure, could force bondholders to pay transfer taxes—which amount to $100 million—twice.
What’s more, CW has a conflict as both the servicer of the mortgages and a major debtholder.
Stuy Town and Peter Cooper Village—model middle-income housing developments along the East River—are home to more than 25,000 people and cover some 25 city blocks.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...