Hedge Fund | featured news

Federal agents have arrested Michael Steinberg, a senior SAC Capital Advisors portfolio manager, the most senior employee at the giant hedge fund ensnared in the government’s vast insider trading investigation.

Sears Holding Corp. has signed a contract with Edward Lampert to keep him on as CEO of the company at a salary of $1 per year. A regulatory document filed Wednesday shows that the billionaire hedge fund manager will be paid an annual base salary of $1, but with the opportunity for a bonus of up to $2 million in cash or stock and up to $4.5 million in stock per year.

Last year, about $450 million belonging to top executives at billionaire hedge fund manager John Paulson’s New York firm took a quick round trip to Bermuda. In April, the executives sent the money to a reinsurance company that they’d set up on the island 650 miles off the North Carolina coast. By June, the Bermuda company, which has no employees and sells far less reinsurance than the industry norm, had sent all the cash back to New York, to be invested in Paulson & Co. funds.

A former hedge fund manager was charged Tuesday in what prosecutors are calling the most lucrative insider trading scheme ever, with ill-gotten gains totaling more than $250 million.

Four years ago, Warren Buffett bet that funds that invest in hedge funds for their clients couldn’t beat the stock market over a decade. So far, Buffett’s winning.

A California-based hedge fund manager surrendered to FBI agents on insider-trading charges on Friday, the latest in a series of cases brought by the U.S. government in recent years against money managers and traders.

Securities regulators have sent subpoenas to hedge funds and other trading firms as it probes possible insider trading before the U.S. government's long-term credit rating was cut last month, the Wall Street Journal said, citing people familiar with the matter.

Hedge fund manager David Einhorn, who is in talks to buy a large minority stake in the New York Mets, could become a principal owner of the baseball team in three years, the New York Times and ESPNNewYork.com reported on Saturday.

Rex Tillerson, the boss of ExxonMobil admitted last week that the price of oil–based purely on supply and demand- should be in the $60 to $70 a barrel range. The reason it’s above $100 a barrel, Tillerson explained, is due to the oil majors using futures contracts to lock in current high prices, and speculation that is engineered by the high-frequency trading of quantitative hedge funds.

A former Wall Street titan was convicted Wednesday of making a fortune by coaxing a crew of corporate tipsters to give him an illegal edge on blockbuster trades in technology and other stocks — what prosecutors called the largest insider trading case ever involving hedge funds.