Wednesday, 22 October 2014
Last updated 13 hours ago
Aug 9 2012 | 1:41pm ET
Aladdin Capital Management will have to defend its handling of a collapsed collateralized debt obligation, after all.
A federal appeals court in New York overturned a lower-court judge’s ruling throwing out the case against the hedge fund. The decision is a victory for Germany’s Bayerische Landesbank, which last year sued Aladdin, accusing it of misleading the bank about the mortgage-backed CDO and of recklessness in its management.
Bayerische Landesbank alleged that Aladdin had sold the CDO as investment-grade. But at least 11 underlying entities—among them Lehman Brothers, Washington Mutual and two Icelandic events—suffered credit events, and the bank’s entire US$60 million investment was lost.
But a lower court judge dismissed the case a year ago. Bayerische Landesbank appealed, and the Second Circuit Court of Appeals found that it had “plausibly alleged that Aladdin’s gross negligence exposed Bayerische to greater risk that it would lose its entire investment than would have otherwise been the case.”
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 ...