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10 Jun 2015

Bernanke To Advise At PIMCO After Testing The Hedge Fund Waters

The former chairman of the US Federal Reserve has joined another institution not regulated by the Fed. From now on Ben Bernanke will be lead consultant at Deutsche Bank, Pacific Investment Management Company (PIMCO), which monitors assets of approximately $1.59 trillion. “The Fed does not regulate Pimco or its parent or any other firm that is affiliated with it,” Bernanke said, according to Reuters. “So there is no contact.” Bernanke himself removed the entities out from under his jurisdiction while in office. Citadel Investment, the hedge fund founded by billionaire Ken Griffin and one of the largest on Wall Street, hired the former economic adviser to George W. Bush in mid-April. Citadel manages over $25 billion in assets under management. Former Reagan adviser and Chairman of the Federal Reserve from 1987 to 2006, Alan Greenspan, previously accepted a position as a consultant at PIMCO as well as hedge fund Paulson & Company. Just over a month ago Jeremy C. Stein, who left the Fed last May, agreed to join as an advisor to BlueMountain Capital Management. Bernanke, who had been sympathetic to the criticism of public opinion towards these ‘revolving doors’, explained that both of his positions are outside the regulation of the Fed, so he will not be doing any ‘lobbying’. “I wanted to avoid the appearance of a conflict of interest,” Bernanke said, according to the NYT. “I ruled out any firm that was regulated by the Federal Reserve.” The former Fed Chairman will combine his work as a PIMCO and Citadel with his current job as a researcher at the Brookings Institute and his activity as a lecturer and waiting to publish next October his book ‘The courage to act’ in which looks back on his years as head of the Fed in which had to deal with the worst economic and financial crisis since the Great Depression.

Elliott Commences Legal Proceedings for an Injunction Against Samsung C&T and its Directors

Elliott, the hedge fund with $26 billion under management, today made the following statement: "Elliott continues to believe that the proposed takeover is clearly neither fair to nor in the best interests of Samsung C&T's shareholders, and that it is unlawful. Elliott has therefore taken the step today of commencing legal proceedings for an injunction against Samsung C&T and its directors in order to seek to prevent the proposed takeover from going ahead and thereby protect the interests of Samsung C&T's shareholders."

Starting up this site again

Since the winding down of my news page on HedgeCo, I will start this site up again. As soon I figure out this Icelandic keyboard.

Blackstone To Hedge On Canadian Diamonds

Blackstone Tactical Opportunities has acquired a 20% equity position in a leading Canadian diamond exploration and development company, according to reports. Blackstone has purchased the shares from Stornoway for $250 million. The hedge fund giant also bought into a minority ownership interest in the Renard diamond stream, a $946 million project to mine diamonds in Québec. “Blackstone’s global presence and their long-established status as one of the world’s leading investment firms make them ideally suited to Stornoway as we work to build a world class diamond mining company.” Matt Manson, President and CEO at Stornoway, said. “The Renard Diamond Project is fully financed and permitted for development of an open pit and underground diamond mine that is expected to produce an average of 1.6 million carats per year over an initial 11-year mine life, representing approximately 2% of global diamond supply by value.“ Blackstone said in a press release. Blackstone Group, a hedge fund with over $300 billion, broke all of their asset and earnings records in the first quarter in the First Quarter 2015 , their economic net income has doubled since 2014, while their distributable earnings rose nearly 160%. Some of last year’s highlights: In 2014 Blackstone announced that it will spin off its Advisory, Restructuring, and Park Hill businesses in 2015. Blackstone completed equity capital markets activity of over $20 billion, including initial public offerings of La Quinta, PBF Logistics LP, Michaels Stores, Catalent, Travelport, and Vivint Solar. BAAM, Blackstone’s Hedge Fund Solutions business, launched a UCITS fund in Europe, as well as its second mutual fund. Blackstone’s Real Estate business launched its Core+ platform to focus on stabilized real estate in major markets. Blackstone portfolio company Black Rhino and Dangote Industries announced a commitment to jointly invest up to $5 billion over the next five years in energy infrastructure projects across Sub-Saharan Africa. The firm also announced that it had hired 20,000 veterans in twenty months through its portfolio since its April 2013 commitment to hire 50,000 in five years.