Hedge funds may increase assets by more than 8 percent this year as clients led by pension plans and rich families invest $50 billion of the cash they held while financial markets fell, according to a report by Barclays Plc.
Investors have about 14 percent of their assets in cash, according to the survey released today by Barclays Capital, the investment-banking unit of London-based Barclays. Almost 80 percent plan to allocate money to hedge funds in 2009…..
U.S. Bankruptcy Judge Robert Gerber, who oversaw the biggest asset sale and the largest financing loan in court history, will show an exacting style of inquiry during General Motors Corp.’s reorganization, lawyers said.
A U.S. judge in New York’s Southern District since 2000, Gerber’s experience in handling Chapter 11 cases such as Adelphia Communications Corp. and Lyondell Chemical Co. may come in handy when trying to split up GM, the biggest U.S. manufacturer ever to file for protection from creditors.
“He is easily one of the best judges in the Southern District, extremely smart, considerate of counsel and careful,” said Mark R. Jacobs, a lawyer at Pryor Cashman in New York who dealt with Gerber in the Adelphia case. “He has a terrific judicial demeanor, and will give the GM case the attention it needs and deserves.”…
SEC Examines Actions by Staffers – Wall Street Journal
The inspector general of the Securities and Exchange Commission is investigating allegations that enforcement staff engaged in misconduct in connection with the insider trading case filed last fall against Mark Cuban.
The inspector general opened his investigation after receiving a complaint from lawyers representing Mr. Cuban, according to a semiannual report from the inspector general to Congress released Monday. The report didn’t name Mr. Cuban specifically, but a person familiar with the matter confirmed the case involves Mr. Cuban, the owner of the Dallas Mavericks…..
Citigroup, Merrill Bulk Up Prime Brokerage – Wall Street Journal
Citigroup Inc. and Bank of America Merrill Lynch are expanding their teams that provide services to hedge funds, looking to become bigger players in that sector even as it has shrunk dramatically.
Citigroup has added about 18 people this year to its global prime-brokerage group, which provides trading and lending services to hedge funds, bringing the total number to about 295 people. Bank of America Merrill Lynch, a unit of Bank of America Corp., plans to hire 40 people to its global financing business, a roughly 800-person group that includes prime brokerage and securities lending, among other business.
Citigroup and Bank of America Merrill Lynch are among the smaller prime brokers, an industry long dominated by Goldman Sachs Group Inc. and Morgan Stanley…..