Tuesday, 21 October 2014
Last updated 1 hour ago
Sep 14 2012 | 12:16pm ET
The Baupost Group has acknowledged that it is behind a year-old lawsuit that seeks to force a former Bear Stearns unit to buy back more than 1,000 mortgages.
The hedge fund's direction of the litigation, which is filed in the name of the Law Debenture Trust Co. of New York and does not name Baupost, was revealed in an Aug. 15 status report on the litigation, which notes that "the directing certificateholders are the Ashford Square Entities, which are wholly-owned by subsidiaries of funds managed by the Baupost Group."
A lawyer for the Boston-based hedge fund told Reuters that Baupost is indeed behind the litigation. An amended complaint, increasing the number of mortgages that Baupost wants EMC, now a subsidiary of JPMorgan Chase, to buy back from more than 8,000 to more than 1,100, was filed earlier this month.
Baupost alleges that EMC routinely breached representations and warranties made about underlying mortgage loans. According to the amended complaint, 88% of the 1,500 mortgages in a pool were in breach.
EMC has offered to buy back only 54 of the mortgages in question.
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 ...