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Hedge Funds

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Hedge funds bet against eurozoneupdated: Sun Apr 29 2012 01:12:00

Hedge fund managers make for unlikely supporters of François Hollande, the French socialist presidential candidate.

CNNMoney: SEC charges tech analyst with insider tradingupdated: Fri Feb 17 2012 15:17:00

Technology analyst John Kinnucan was arrested Friday on allegations of trading on information about many of the nation's leading tech companies, resulting in illicit gains of nearly $110 million.

CNNMoney: SEC to step up scrutiny of private equity firmsupdated: Fri Jan 27 2012 12:09:00

The private equity world is struggling to stay in the shadows.

CNNMoney: Underperforming hedge funds still raking in the bucksupdated: Mon Dec 05 2011 18:10:00

Hedge funds have done a poor job living up to their name in 2011, but they still managed to rake in the big bucks.

CNNMoney: John Paulson bets more on Bank of Americaupdated: Tue Nov 15 2011 14:35:00

John Paulson was once deemed one of the world's best investors, and Bank of America was the largest bank in the United States.

CNNMoney: Jefferies faces possible liquidity crunchupdated: Fri Nov 04 2011 14:52:00

The contagion from the rapid downfall of the once little-known financial firm MF Global continues to spread through Wall Street. The investment bank Jefferies is the latest potential casualty.

CNNMoney: Hedge funds suffer worst quarter since 2008updated: Wed Oct 19 2011 14:12:00

Feeling blue about the hit your portfolio took last quarter? You're not alone. Hedge funds also had a lousy third quarter, delivering one of the worst performances on record.

CNNMoney: Investor John Paulson: Alone at the bottomupdated: Thu Oct 13 2011 17:01:00

During the recent downturn, legendary hedge fund investor John Paulson was in a class by himself, generating returns of up to 600% by betting against mortgages in 2008 as the market crashed.

CNNMoney: Big hedge funds are getting slaughteredupdated: Wed Sep 07 2011 15:13:00

In a global market roiled by uncertainty, there's one bet that's becoming increasingly likely: several big hedge funds will face steep losses before the year is through.

CNNMoney: From Minnesota's corn fields to Wall Streetupdated: Thu Jun 30 2011 17:07:00

Editor's note: This story is from the CNN special "Stories: Reporter" which airs Sunday, July 3, at 7:30 pm EDT.

CNNMoney: SEC casts a wary eye on SAC Capitalupdated: Wed Jun 01 2011 12:55:00

The Securities and Exchange Commission is investigating one of the nation's largest hedge funds, SAC Capital Advisors LP, in connection with insider trading, according to a published report.

CNNMoney: Hedge fund war chest tops $2 trillionupdated: Tue Apr 19 2011 11:45:00

Hedge funds reached a milestone in the first quarter, amassing over $2 trillion in capital for the first time ever, an industry tracker said Tuesday.

CNNMoney: Top hedge funds manage $1.3 trillionupdated: Wed Mar 02 2011 17:05:00

After taking a hit from the financial crisis, hedge funds are making a strong recovery. They're attracting big money and raking in the profits.

CNNMoney: Ex-hedge fund employees charged in insider probeupdated: Tue Feb 08 2011 13:58:00

Federal authorities announced charges Tuesday against four former hedge fund employees, part of an ongoing probe focused on consulting firms that allegedly leaked inside information about tech companies.

Fortune: From analyst to hedge fund founder in six yearsupdated: Tue Dec 28 2010 09:50:00

At just 30 years old, Cara Goldenberg is at the top of her game. She is the founder and managing partner of Permian Investment Partners, a New York City-based hedge fund she launched in 2008.

CNNMoney: Don Chu arrested in insider-trading probeupdated: Wed Nov 24 2010 15:47:00

The feds on Wednesday escalated their unfolding insider-trading crackdown by arresting an employee of an "expert-networking" firm who allegedly conspired to leak information to hedge funds.

CNNMoney: Hedge funds are back. Too bad for you.updated: Tue Oct 19 2010 16:28:00

Individual investors are boycotting the stock market, while hedge funds have regained their swagger after wandering in the wilderness.

Fortune: A hedge fund pioneer looks at 30updated: Thu Aug 19 2010 16:19:00

"You need to be decisive, open-minded, flexible, and competitive." --Stanley Druckenmiller

Fortune: My own private Goldman testimonyupdated: Tue Jul 27 2010 12:33:00

I was not asked to testify at the recent hearings of the Senate Permanent Subcommittee on Investigations, probably because I've never worked at Goldman Sachs or anywhere else on Wall Street, or had any involvement whatsoever in the market for synthetic CDOs, all-natural CDOs, or subprime mortgages of any kind. Nonetheless, had I been invited, I would have been pleased to respond to some of the Senators' remarks as follows:

Fortune: John Paulson puts his legend to the testupdated: Fri Jul 16 2010 04:44:00

It's tough to be the king. John Paulson, current monarch of hedge funds, is having a challenging year, according to recent press reports. Bloomberg News recently reported that Paulson's $9 billion Advantage fund was down 5.8% in the first six months of the year. His Advantage Plus fund was down 8.8%. And while his Recovery fund was reportedly up through June, it suffered a 12.4% decline that month. The lone bright spot: his gold fund, up 13% for the year.

Fortune: The accidental CMBS recoveryupdated: Tue Jul 13 2010 17:07:00

Back in 2009, when there was no market for securitizations and credit was still mostly frozen, a group of experts including Paul Volcker called for a return to an old strategy as a way out of the financial crisis: Start up another Resolution Trust Corp.

Fortune: Dangerous liaisons at IBM: Inside the biggest hedge fund insider-trading ringupdated: Tue Jul 06 2010 17:51:00

At 7:30 in the morning on Oct. 16, 2009, Robert Moffat had already been at his desk at IBM's headquarters in Armonk, N.Y., for an hour and a half. As he had almost every day in his 31-year career at the company, he had left home at 5:30 a.m. to get a jump on work. He had just finished his first call of the day when his phone rang. It was his wife, Amor.

CNNMoney: Derivatives: No special deals for Wall Streetupdated: Wed Jun 23 2010 08:09:00

As Congress debates the final language for reforming Wall Street, a behind-the-scenes battle is raging over the arcane details of derivatives regulation.

CNNMoney: Wall Street cops get toughupdated: Thu May 27 2010 15:56:00

The government unveiled two high-profile cases of financial fraud Thursday as federal regulators look to crack down on Wall Street shenanigans.

Fortune: Why hedge funds will not defectupdated: Wed May 26 2010 14:47:00

Hedge funds have nowhere left to hide.

Fortune: Citi hedge funds find a new homeupdated: Thu Apr 15 2010 09:23:00

SkyBridge Capital has spent five years promoting the idea that start-up hedge funds can outperform the big guys. So what is it doing taking over a chunk of the biggest laggard of them all, Citigroup?

CNNMoney: Hedge fund manager paycheck: $4 billionupdated: Thu Apr 01 2010 15:13:00

After plunging during the financial crisis, the income of top hedge fund managers surged in 2009 to a record high as financial markets recovered from historic lows, according to a new survey published Thursday.

CNNMoney: Hedge funds: They're back!updated: Fri Mar 12 2010 09:48:00

After two incredibly turbulent years defined by high-profile blow-ups and staggering losses, the hedge fund industry appears to be expanding once again.

Greek PM on financial woesupdated: Wed Feb 17 2010 04:19:00

Greece's prime minister tells Christiane Amanpour he sees the financial crisis as an opportunity to change.

Fortune: A banner year for hedge fundsupdated: Mon Feb 15 2010 11:12:00

It looks like risk is back. The hedge fund industry had a phenomenal 2009, with a return of 18.6%, for its greatest rebound in 15 years, says a report from industry research firm Credit Suisse Tremont.

Fortune: The fall of a hedge-fund wunderkindupdated: Tue Jan 26 2010 10:33:00

It was the sort of boom-era project that a developer had to love: 385 scenic acres in the Bahamas that would be transformed into a casino, hotels, luxury residences, a marina, and a golf course designed by Greg Norman.

Fortune: The smoldering hedge fundupdated: Mon Jan 25 2010 12:38:00

It was the sort of boom-era project that a developer had to love: 385 scenic acres in the Bahamas that would be transformed into a casino, hotels, luxury residences, a marina, and a golf course designed by Greg Norman.

Fortune: Buffett's big betupdated: Mon Nov 23 2009 11:15:00

Will a collection of hedge funds, carefully selected by experts, return more to investors over the next 10 years than the S&P 500?

Fortune: Buffett's bet: The argumentsupdated: Mon Nov 23 2009 11:13:00

Prediction: Over a 10-year period commencing Jan. 1, 2008, and ending Dec. 31, 2017, the S&P 500 will outperform a portfolio of funds of hedge funds, when performance is measured on a basis net of fees, costs, and expenses.

Fortune: Galleon scandal twists and turnsupdated: Wed Nov 04 2009 12:27:00

A recent report that Galleon investigators have subpoenaed a former SAC Capital Advisors employee shows that the scandal's tentacles are maybe reaching farther and farther.

Fortune: Could a Florida real estate deal sink Cioffi and Tannin?updated: Wed Oct 28 2009 10:02:00

While there has been some excitement in the courtroom itself during the first few weeks of the federal criminal trial of Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin, the real action in the trial so far seems to be taking place in and around a small bank in Florida that had nothing to do with the original conspiracy and the fraud charges filed against the two men in June 2008.

Fortune: Galleon scandal's executive conundrumupdated: Fri Oct 23 2009 10:19:00

When last week the federal government arrested Raj Rajaratnam of the Galleon Group for masterminding a $25 million insider-trading ring, the biggest head-scratcher was the inclusion of Anil Kumar in the government's complaint.

Fortune: Accused inside trader is Bear Stearns alumniupdated: Mon Oct 19 2009 12:59:00

The $20 million insider-trading ring that the U.S. government alleges was masterminded by billionaire hedge-fund manager Raj Rajaratnam also included two former Bear Stearns hedge-fund managers. According to two federal complaints, two of Rajaratnam's partners in the alleged crimes were Mark Kurland, of Mount Kisco, N.Y., and Danielle Chiesi of New York City. Both Kurland, 60, and Chiesi, 43, were arrested last week, along with Rajaratnam, and charged with insider trading. Bail for Kurland was set at $3 million and for Chiesi at $2 million (Rajaratnam's was set at $100 million).

CNNMoney: A lesson from the Galleon scandalupdated: Mon Oct 19 2009 10:08:00

Galleon may have been holed below the waterline. The indictment of Raj Rajaratnam, the technology-focused hedge fund firm's founder, on insider trading charges is likely to scare investors away. Amid the shock and the intriguing details of the allegations, there's a broader lesson for investors about hedge fund governance.

CNNMoney: Hedge funds need a new fee structureupdated: Fri Oct 16 2009 11:53:00

Hedge funds are finally getting their heads above water. The average fund could soon regain the high water mark at which its manager starts minting performance fees again.

CNNMoney: A test case for Wall Street justiceupdated: Tue Oct 13 2009 07:24:00

Two former Bear Stearns hedge fund managers go to court Tuesday in the first, and so far only, prominent criminal trial stemming from the mortgage meltdown.

Fortune: Bear Stearns hedgie was on medsupdated: Mon Oct 12 2009 15:23:00

In a bit of pre-trial drama, federal prosecutors recently placed the digital diary of Matthew Tannin into the public record. In it, the Bear Stearns hedge fund manager fretted about becoming addicted to sleeping pills some six months before the funds he co-managed blew up in the summer of 2007.

Fortune: Why the Cioffi and Tannin trial matters to JPMorganupdated: Fri Oct 09 2009 10:46:00

A gleaming Manhattan skyscraper and a group of well-heeled stockbrokers were some of the coveted assets that JPMorgan Chase snatched up when it acquired Bear Stearns for $10-a-share in March 2008. But like the stick of dynamite that lies hidden in one of Wiley Coyote's birthday cakes, JPMorgan also took on the liability for all of Bear Stearns ongoing litigation as part of that merger. So when the criminal trial of Ralph Cioffi and Matthew Tannin, the managers of the two failed Bear Stearns hedge funds that sparked a market meltdown in 2007, begins next Tuesday, JPMorgan's interest in the case will be more than academic.

CNNMoney: A test case for Wall Street justiceupdated: Thu Oct 08 2009 05:38:00

Despite all the finger-pointing over who's to blame for the worst financial crisis since the Great Depression, just two prominent players face criminal charges.

Fortune: Ralph Cioffi's Florida fishing tripupdated: Fri Oct 02 2009 15:29:00

The much awaited trial of Ralph Cioffi and Matthew Tannin, the managers of two failed Bear Stearns hedge funds that sparked a market meltdown during the summer of 2007, looks like it will have a new twist when it gets underway on October 13. One of the defendants, Ralph Cioffi, made a lightening-fast trip to Florida last month allegedly to get his hands on a key piece of evidence -- documents from Busey Bank, in Ft. Myers, Fla. Was the hedge fund manager engaging in a cover-up, as the U.S. Attorney's Office in Brooklyn asserts? Or was Cioffi merely up to a bit of amateur detective work to exonerate himself, as his defense attorney claims?

Fortune: Chanos: G7 ignored crisis warningupdated: Wed Aug 26 2009 12:31:00

The hedge fund manager who made his name by predicting the demise of Enron says he warned world leaders of a systemic banking failure in 2007, but he was ignored.

CNNMoney: Hedge funds: The tide is turningupdated: Fri Aug 21 2009 12:42:00

Investors have been putting money back into hedge funds over the last three months as the worst of the credit crisis appears to have passed, but analysts say a return to the industry's heyday is not likely.

Fortune: Hedge fund strategies for the little guyupdated: Tue Jul 21 2009 10:59:00

For retail investors who want to put money into the hedge-fund-like vehicles, the options continue to grow.

Fortune: Cash for Fortress, a bath for investorsupdated: Wed Jun 10 2009 11:21:00

In the latest edition of his seminal textbook, "Pioneering Portfolio Management," David F. Swensen, the chief investment officer of the $22.5 billion Yale Endowment, wrote that "strangely absent" from hedge fund Fortress Investment Group's SEC registration filing in 2006 was a section on "Greed." Since Swensen's book was published in January of this year, Fortress has once again demonstrated the risks of investing with the fast-money crowd: this time through a little-noticed $200 million, secondary stock offering on May 14 that is already trading 20% below its $5 per share offering price.

Fortune: New hedge funds: smaller and thriftierupdated: Fri May 22 2009 10:42:00

An industry lately synonymous with losses, liquidations, and fraud is showing signs of recovery. An uptick in new hedge funds suggests that investors are warming to them again. And trends among the newly launched funds show how that high-rolling world has changed in the aftermath of the credit collapse.

CNNMoney: Vulture investors are looking for preyupdated: Thu Apr 09 2009 09:16:00

They pray for recessions and smile a little wider when a company climbs onto its death bed.

Fortune: An ETF takes on hedge fundsupdated: Thu Apr 02 2009 14:50:00

After dozens of blow-ups and the stink of the Madoff mess, a sane investor might think any investment with "hedge fund" in its name might as well be called "run screaming in the other direction."

CNNMoney: Top hedge fund managers still raking in the moneyupdated: Wed Mar 25 2009 05:32:00

Despite turbulence in the financial markets and the global economic downturn, the world's 25 top-earning hedge fund managers raked in a staggering $11.6 billion last year, according to a ranking released Wednesday.

Fortune: Wall Street's love-hate for Treasury planupdated: Tue Mar 24 2009 22:20:00

The Obama Administration's latest bailout plan is as rich with irony as it is with potential.

CNNMoney: N.Y. lawyer arraigned in alleged $700M fraudupdated: Thu Mar 19 2009 14:11:00

The managing partner of a New York law firm pleaded not guilty Thursday to charges in an alleged $700 million fraud against various hedge funds, the U.S. attorney's office here said.

Fortune: Inside the world's biggest hedge fundupdated: Thu Mar 19 2009 05:50:00

Is the current downturn merely a severe slump, or are we facing a second coming of the Great Depression? That's the question everyone is asking these days. But Ray Dalio, founder of Bridgewater Associates and manager of what is now the world's biggest hedge fund, has been preparing to answer it for eight years.

Fortune: Bear Stearns: a fight over the corpseupdated: Fri Mar 06 2009 11:35:00

The federal criminal trial of former Bear Stearns hedge-fund managers Ralph Cioffi and Matthew Tannin, which is set to begin in Brooklyn in September, has been expected to be a kind of template for coming Wall Street prosecutions. But the model case is already getting messy.

Fortune: Inside the Bear Stearns boiler roomupdated: Wed Mar 04 2009 17:43:00

Years from now, when academics search for causes of the stock market crash of 2008, they will focus on the pivotal role of mortgage-backed securities. These exotic financial instruments allowed a downturn in U.S. home prices to morph into a contagion that brought down Bear Stearns a year ago this month - and more recently have brought the global banking system to its knees.

Fortune: Where are they now?updated: Wed Mar 04 2009 17:37:00

The hedge-fund debacle and the fateful decision to lend $1.5 billion to the High-Grade Fund led to Bear Stearns' first quarterly loss in its 85-year history, in the three months ended November 2007. Besides Cioffi and Tannin, there was other collateral damage. On August 1, 2007 Jimmy Cayne fired Warren Spector. On January 2008, Cayne resigned as CEO probably within days of a coup d'etat that was percolating throughout the firm's corridors. (Cayne remained the Chairman of the firm's board of directors).

CNNMoney: Wall Street's tax problemupdated: Wed Mar 04 2009 15:15:00

Hoping to help plug the gaping hole in the nation's deficit, the Obama administration is looking for a little help from an unlikely source: the financial services industry.

Fortune: A hedge fund manager's mutual twistupdated: Wed Mar 04 2009 12:25:00

In what looks like a sign of the hard times in the hedge fund world, AQR Capital Management - one of the industry's biggest names - is opening its doors to the retail market.

Fortune: Trading securities and Ferrarisupdated: Tue Mar 03 2009 06:51:00

Cioffi lived very well. In 2000, he and his wife, Phyllis, purchased a home for $815,000 in Tenafly, New Jersey, that in 2007 was assessed for $2.6 million. He owned a home in Naples, Florida, valued at $933,000, and a home in Ludlow, Vermont, valued at $2.2 million. He owned an apartment at the Stanhope, on Fifth Avenue in Manhattan, and a $10.7 million, 6,500-square-foot home in Southampton, Long Island, which had six bedrooms, seven baths, a pool, a tennis court, and a separate guesthouse on two and a half acres.

Fortune: Davos divided on how to fix Wall Streetupdated: Fri Jan 30 2009 16:01:00

One of the more repeated comments heard in the after hours chatter in the salons of Davos was that no one from the financial industry has actually apologized for the mess they've created in the global financial system.

Fortune: Hedge funds' unlikely leaderupdated: Thu Jan 15 2009 11:07:00

When the headhunter first called Richard Baker in late 2007 and asked him if he was interested in becoming president and CEO of the Managed Funds Association - the hedge fund trade group - Baker thought it was a joke. "My reaction was, 'You want me to do what?'"

Fortune: Don't blame the SECupdated: Mon Jan 05 2009 06:14:00

Yes, there really are times when life imitates art. A case in point: the Bernie Madoff scandal, in which the disgraced investor bears a startling resemblance to Zero Mostel's sleazy theater promoter in one of my favorite flicks, "The Producers."

CNNMoney: Hedge fund graveyard: 693 and countingupdated: Thu Dec 18 2008 17:14:00

A record number of hedge funds went bust during the third quarter, a report showed Thursday, as shaky markets and tight credit drove investors away from risky investments.

Fortune: Madoff mess exposes fund ripoffs tooupdated: Tue Dec 16 2008 16:45:00

Not quite rich enough and not quite smart enough, a certain investing class has for years paid through the nose for what was thought to be world-class money management by investing in funds that promise access to the best hedge funds.

Fortune: Madoff investors burned by SEC, tooupdated: Mon Dec 15 2008 11:28:00

Now that the Madoff fraud has been exposed there are still a slew of fundamental questions outstanding.

Fortune: Citadel under siegeupdated: Tue Dec 09 2008 15:55:00

On the morning of Friday, Oct. 24, James Forese, Citigroup's head of capital markets, picked up the phone and called Kenneth C. Griffin, the founder and chief executive officer of Citadel Investment Group, a Chicago-based hedge fund that manages $15 billion and has 1,300 employees worldwide.

CNNMoney: Partner in N.Y. law firm charged with fraudupdated: Mon Dec 08 2008 15:57:00

The managing partner of a New York law firm has been arrested on charges stemming from an alleged $100 million fraud against various hedge funds, the U.S. attorney's office in New York said Monday.

Fortune: Oil speculation: It's backupdated: Fri Dec 05 2008 13:55:00

With oil now at $50 a barrel, you no longer hear Congress complaining about oil speculators. The irony is there's probably more real speculation going on today than there ever was back in June and July.

Fortune: 'Hedge funds will be decimated'updated: Thu Nov 13 2008 17:14:00

A Congressional panel grilled five of the world's richest and most powerful hedge fund managers Thursday as lawmakers sought to understand how much blame they could assign the little-understood hedge fund industry for the global economic collapse.

CNNMoney: Congress probes hedge fund industryupdated: Thu Nov 13 2008 14:36:00

A congressional committee scrutinized risks in the hedge fund industry on Thursday to determine whether further regulation is needed.

Fortune: Ospraie in a cornerupdated: Wed Nov 12 2008 09:39:00

Years before Dwight Walter Anderson was running the world's largest commodities hedge fund from an office 27 floors above New York City's Park Avenue, he was on the road for a software consulting firm based in Chicago.

Fortune: Hedge fund star: Fears are overblownupdated: Tue Nov 11 2008 06:28:00

Bear in mind two caveats as you peruse these comments. First, I run a hedge fund, so I am hardly an unbiased observer. Second, nobody, and I mean nobody, really knows what hedge fund liquidity is or what redemptions are or will be.

Fortune: Volkswagen bet runs down SACupdated: Mon Nov 10 2008 16:56:00

As the lights fade across the hedge fund universe, SAC Capital Advisors had been one of the few funds unbowed by the rout that has forced countless rivals to close or suspend redemptions.

Fortune: Hedgie's careful prescription for profiting in the mortgage messupdated: Thu Nov 06 2008 14:23:00

In a time when closures or panicked liquidations of name-brand hedge funds have become commonplace, the opening of a $1 billion fund trading mortgage-backed securities and other types of credit should attract more than a few raised eyebrows.

Fortune: Merger activity starts to reheatupdated: Thu Nov 06 2008 07:30:00

Here's a sign that the credit markets are thawing: Some blue-chip merger targets are looking like less like blue-light specials. Hedge Funds Shorting VW Stung By Porscheupdated: Wed Oct 29 2008 17:00:00

Shorting VW proved disastrous when high-rollers discovered that the company had been stealthily acquired by their favorite sports car's maker

CNNMoney: How to tell it's finally overupdated: Fri Oct 24 2008 12:45:00

Stocks plunged again Friday. Ugh! It's getting more difficult by the day to maintain that the worst may be over.

CNNMoney: Record declines in hedge fundsupdated: Fri Oct 17 2008 13:19:00

Nervous investors fled hedge funds as the market meltdown got underway, setting records for investor redemptions and asset declines in the third quarter, according to a report from an industry research firm issued Friday. Hedge Funds: How the Smart Money Looked Dumbupdated: Wed Oct 15 2008 19:00:00

The market downturn hasn't just been hard on ordinary investors; it has also hurt the high flyers

Fortune: settles part of feudupdated: Tue Oct 14 2008 15:17:00

A chapter in one of Wall Street's more bitter and colorful legal sagas ended Monday when Internet retailer and independent research outfit Gradient Analytics settled their differences.

Fortune: Looking for troubleupdated: Tue Oct 07 2008 17:01:00

The swaggering, ultra-rich hedge fund manager, manager, an unloved species to begin with, is very possibly becoming endangered.

Fortune: Market chaos batters hedge-fund starupdated: Fri Oct 03 2008 16:15:00

David Einhorn should be celebrating one of the best months of his career. Two companies whose stock he bet big against - Lehman Brothers and Allied Capital - suffered grave blows, with Lehman filing for bankruptcy and Allied shares plunging 60%.

Fortune: Hedge fund blues are just beginningupdated: Thu Oct 02 2008 08:42:00

The domino nature of the looming hedge fund crisis is neatly illustrated by the troubles of a high-flying New York fund with a niche that was supposed to be recession proof.

Fortune: The $55 trillion questionupdated: Tue Sep 30 2008 12:28:00

As Congress wrestles with another bailout bill to try to contain the financial contagion, there's a potential killer bug out there whose next movement can't be predicted: the Credit Default Swap.

Fortune: California's hedge fund kingupdated: Mon Sep 22 2008 04:01:00

As the summer of 2008 drew to a close, many hedge fund managers were worried about coaxing their returns out of negative territory by the end of the year. Thomas Steyer, who founded the giant Farallon Capital Management, was worried about his hedge fund, but he was also losing sleep over getting Barack Obama elected president. For the first time in its 22-year history, Farallon was on track for a calendar-year loss. At the end of June the firm's flagship fund was off a little more than 5%, according to an investor report obtained by Fortune, and Farallon hasn't made up the lost ground since.

Fortune: AIG woes could swat swap marketsupdated: Wed Sep 17 2008 10:41:00

If the death of Lehman Brothers upset the financial world, a collapse at AIG would have turned the credit markets upside down.

Fortune: The rise and fall of Jimmy Cayneupdated: Mon Aug 25 2008 15:39:00

In the early morning hours last Sept. 11, a black Town Car pulled up to the entrance of New York-Presbyterian Hospital in Manhattan. Inside the sedan Jimmy Cayne, the CEO of Bear Stearns, was close to death. At dawn Cayne's wife had placed an emergency call to his physician, Dr. Jay Meltzer, and when Meltzer arrived at the couple's Park Avenue apartment, Cayne, then 73, was drowsy and desperately weak and had no appetite. His blood pressure was dangerously low. He was breathing very rapidly and deeply. Meltzer suspected sepsis. Rather than call an ambulance, Cayne asked for a car, in part because he feared that a public disclosure about his health could further damage the firm - a firm whose stock price had already dropped close to 27% (from $143 to $105 a share) since two of its highly leveraged hedge funds had imploded in June.

Fortune: High-flying fund manager under SEC scrutinyupdated: Wed Aug 20 2008 15:17:00

Third Point Management, a New York hedge fund run by one of the country's most outspoken and controversial investors, has come under investigation from the Securities and Exchange Commission.

Fortune: The cases against Bear Stearnsupdated: Mon Aug 04 2008 10:19:00

More than 20 separate lawsuits - many since consolidated - have been filed against Bear Stearns, its board of directors and management. Some of the plaintiffs are ex-employees, like Alex Manos, a 27-year Bear veteran who processed trades at the firm's back-office in Brooklyn. They blame the management and the board for squandering their life savings. Others are from shareholders who believe the same group sold the company too cheaply and under duress. And several more focus on the managers of the two Bear Stearns-affiliated hedge funds that dissolved in the summer of 2007 and first revealed to the world the extent of the toxicity of the mortgage-backed securities manufactured and sold by Wall Street.

Fortune: The oil speculator sideshowupdated: Mon Jul 28 2008 08:34:00

Watch out, speculators: The Commodity Futures Trading Commission is getting tough on crime. But since, as the CFTC has said, speculation hasn't pushed up prices, the crackdown will benefit its image more than the economy.

CNNMoney: Hedge funds stumble in first half of '08updated: Wed Jul 09 2008 09:59:00

Hedge funds delivered their worst performance on record during the first half of 2008, revealing that the industry has not been immune to the broader market turmoil.

Fortune: Bear's dogs that didn't barkupdated: Mon Jun 23 2008 14:39:00

Government documents supporting the charges filed last week against two former Bear Stearns hedge fund stars paint a picture of an organization that had a hard time tackling problems head-on - a flaw that ultimately would prove fatal to the firm. Ex-Bear Stearns Managers Arrestedupdated: Thu Jun 19 2008 14:00:00

Two former Bear Stearns managers were arrested Thursday on securities fraud and other charges linked to the collapse of a hedge fund that bet heavily on subprime mortgages before the market collapsed

Fortune: The man who beat the SECupdated: Wed Jun 18 2008 03:48:00

Phil Goldstein became a hedge fund manager thanks to a pair of gray sweatpants. In the summer of 1992 the 47-year-old civil engineer walked into Las Vegas's Mirage hotel to meet his first potential investor. The shorts he was wearing didn't meet the dress code of Moongate, a Chinese restaurant where the two men had planned to meet. He thought the rule was arbitrary, so he went to a nearby gift shop, purchased a pair of sweatpants, changed into them, and returned to the restaurant. After the meal he changed back into his shorts and returned the pants for store credit. When Goldstein also told the prospect that he was staying off the Strip, at a $39-a-night motel, the deal was sealed. "This is a man I want managing my money," the investor told his broker that night.

Fortune: Another handicap for hedge fundsupdated: Mon Jun 16 2008 10:56:00

It's time to say goodbye to Old Lane, the hedge fund management company bought by Citigroup last July.

CNNMoney: Filling the Bear Stearns voidupdated: Mon Jun 09 2008 04:14:00

Wall Street's inner circle contracted significantly after JPMorgan Chase officially completed its historic acquisition of Bear Stearns.

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