Hedge Fund News: Icahn Out, Loeb Drama, Rajaratnam Trial, Fairmont Frenzy
Icahn to Return Outside Money in Hedge Fund (NYT Dealbook)
Carl C. Icahn is returning all outside money in his hedge fund, citing his reluctance to be responsible to investors through another possible crisis.“While we are not forecasting renewed market dislocation, this possibility cannot be dismissed,” Mr. Icahn wrote in a letter to investors.
Reporters caught in US fund lawsuit crossfire (Reuters)
Last month, in a little-noticed move, Daniel Loeb, one of several prominent hedge fund managers sued by Fairfax Financial served subpoenas on a number of journalists seeking to take their depositions in the now five-year-old litigation….Loeb, however, appears to have had a recent change of heart about the subpoenas, which were sent to columnist Joe Nocera of The New York Times (NYSE:NYT) and former Fortune (NYSE:TWX) writer Bethany McLean, among others. A lawyer for Loeb told Reuters on Monday the subpoenas were withdrawn. “Third Point has no intention of seeking testimony or documents from any member of the media, and any prior subpoenas issued to journalists have been fully withdrawn,” said Loeb attorney Bill Carmody of Susman Godfrey in New York.
Fmr. Prosecutor Douglas Burns on Rajaratnam Insider-Trading Case (Bloomberg)
Douglas Burns, a formal federal prosecutor, discusses the outlook for the trial of Galleon Group LLC co-founder Raj Rajaratnam, which begins today in federal court in Manhattan. Rajaratnam, 53, is the central figure in the largest crackdown on hedge-fund insider trading in U.S. history. The Sri Lankan-born money manager is accused of making $45 million from confidential information leaked by corporate insiders and hedge fund traders. Burns talks with Erik Schatzker on Bloomberg Television’s “InsideTrack.”
At Least 115 People Think $10K /Night Is A Deal at The Fairmont (Bloomberg)
LivingSocial heralded a new era last month when it offered a $10,000 coupon for a penthouse-suite package at San Francisco’s Fairmont hotel: Daily-deal sites are going upscale.
This is a guest post by Insider Monkey.