Wednesday, 1 October 2014
Last updated 8 hours ago
Mar 28 2014 | 9:32am ET
Hedge funds' bet on the corpse of Lehman Brothers Holdings is paying off.
The collapsed investment bank's liquidators said yesterday that they'd pay out $17.9 billion more to creditors. The distribution, the fifth since the end of 2011, brings the total returned to creditors to more than $80 billion—$15 billion more than initially expected, amounting to about six extra cents on the dollar.
For the hedge funds that aggressively bought up Lehman claims in the aftermath of its 2008 failure, those six cents are adding up. Paulson & Co. alone had made $1 billion on its Lehman investments through last year, The Wall Street Journal reports.
Others have done well, too: Silver Point Capital invested in bonds issued by Lehman's derivatives business. Those bonds are now expected to recover 30.9% of their value, three cents more than initially expected. Halcyon Asset Management and King Street Capital Management were also major Lehman debt investors.
There could still be more to come. Lehman's bankruptcy liquidation process is expected to take several more years.
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…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...