Saturday, 22 November 2014
Last updated 1 day ago
May 21 2012 | 1:39pm ET
Having failed to convince Ally Financial not to put its mortgage business into bankruptcy, Elliott Management is now taking its medicine.
The New York-based hedge fund is likely to take a big hit on the Residential Capital bonds, after the company filed for bankruptcy last week. Elliott also appears to have missed out on a major rally in Ally shares—the hedge fund sold a chunk of its 2.3% stake in the former GMAC Financial over the past several weeks, in time to see someone else profit from the 10% jump in stock price.
That someone else, it appears, is Third Point, which bought Elliott's stake, the New York Post reports.
In March, Elliott urged Ally not to put ResCap into bankruptcy, arguing that such a move would indefinitely delay an initial public offering for the company, which was bailed out by and is now majority-owned by the U.S. government.
ResCap is set to sell the majority of its assets to Fortress Investment Group as part of the bankruptcy proceedings.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...