Monday, 20 October 2014
Last updated 2 days ago
Oct 10 2008 | 1:50am ET
Hedge fund Appaloosa Management thought it dodged a bullet this summer when a federal judge dismissed part of an auto-parts maker’s lawsuit against it. It may have been wrong.
U.S. Bankruptcy Court Judge Robert Drain said Wednesday that he may have erred in dismissing the claim by Delphi Corp. that Appaloosa engaged in a secret campaign to avoid making good on a $2.55 billion equity investment deal it led. He asked the two sides to weigh in on whether the claims should be reinstated by Oct. 21.
“I’m afraid I was wrong on this point,” Drain said.
Delphi was relying on the Appaloosa-backed financing to exit bankruptcy protection. But Appaloosa and its partners pulled out of the deal, alleging that Delphi had violated its tenets by seeking additional financing from its former partner, General Motors Corp.
In addition to the allegations of the secret campaign, Delphi accuses Appaloosa chief David Tepper of misrepresenting his intentions to make good on the investment deal, and that the hedge fund tried to prevent the company from getting the debt financing it needed to escape bankruptcy.
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 ...