Tuesday, 21 October 2014
Last updated 3 hours ago
Jan 11 2008 | 1:00am ET
The chairman of hedge fund Lone Star Funds may be spending more time in South Korea than he planned, after prosecutors slapped a 10-day travel ban on him.
John Grayken traveled to the country yesterday to testify in the stock-price manipulation trial of one of its portfolio companies. Prosecutors have sought to question Grayken for months, and said he would be brought in for questioning after his court appearance, scheduled for today. It would not say how long he would be detained for; South Korean prosecutors can hold a person in custody for up to a month before arresting them.
At issue is Lone Star’s purchase of a majority stake in Korea Exchange Bank in 2003. Some labor unions and politicians alleges that the hedge fund colluded with KEB management to depress its stock price in advance of that deal, in which Lone Star paid US$1.2 billion for a 65% share of the firm.
Lone Star came under a hail of criticism in 2006, when it agreed to sell KEB to Kookmin Bank at a US$4 billion profit. Last year, it broke off that deal, saying KEB’s value has grown further, striking a new tentative agreement in September to sell the bank to HSBC. This time around, the Dallas-based hedge fund stands to turn a US$5 billion, though the South Korean Financial Supervisory Commission has said it will not make a decision on the proposed deal until the legal situation is resolved.
Grayken has defended his firm’s stewardship of KEB, saying Lone Star’s investment and management shakeup resulted in its soaring value.
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 ...