Sunday, 19 October 2014
Last updated 2 days ago
Oct 1 2013 | 9:58am ET
Hedge funds and some other creditors of the former General Motors have struck a deal over a $367 million payout to the funds in 2009.
A trust representing "old" GM's unsecured creditors, the successor to Motors Liquidation Co., agreed to drop their lawsuit against the funds in exchange for those funds dropping $1.13 billion in claims against the old GM estate. The four hedge funds include Elliott Management, Fortress Investment Group and Paulson & Co.; Appaloosa Management and Aurelius Capital Management, which took part in the 2009 deal, sold their bonds and were not involved in the litigation.
In addition to getting to keep the $367 million, the hedge funds also received $50 million from the "new" GM.
The 2009 deal was designed to keep GM Canada out of bankruptcy. GM Canada borrowed the money from old GM and then paid the hedge funds. The trust argued that the deal should have been canceled under bankruptcy law.
The settlement goes before a federal bankruptcy judge on Oct. 21.
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 ...