Tuesday, 23 September 2014
Last updated 10 hours ago
Jul 24 2014 | 10:31am ET
Its founder cleared of insider-trading charges, Wynnefield Capital is wasting no time getting back to business.
The New York-based hedge fund, which closed to new investment earlier this year, just before the civil trial of founder Nelson Obus began, reopened all but immediately after he was found not liable by a jury at the end of May. The day after the verdict, the firm accepted a $425,000 investment.
A month afterwards, on June 30, the small-cap specialist formally began a fundraising push to add $110 million to its $340 million asset base. The firm, which imposes a two-year lockup, has already netted $5 million, Hedge Fund Alert reports.
If the fundraising drive is successful, Wynnefield will be bigger than ever: The firm suffered only $25 million in redemptions after it was subpoenaed by the Securities and Exchange Commission eight years ago—most of it from a single institutional investor. The fund has posted double-digit returns in each of the past two years and is up 11.5% this year.
The SEC had accused Obus of earning Wynnefield $1.3 million on a 2001 trade based on a tip received by his analyst, Peter Black, from a friend. Obus’ lawyers countered that, if true, their client was the “lamest insider-trader in history.”
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 McKitich, CIO of Petty 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…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.