The Morning Brief: Moore Sacks Would-Be Wolf of Wall Street

An employee of hedge fund Moore Capital Management was fired after reports he trashed a tony Hamptons home over the weekend during what was described as a “Wolf of Wall Street” party. The New York firm, founded by Louis Bacon, confirmed to the New York Post that it fired Brett Barna. “Mr. Barna’s personal judgment was inconsistent with the firm’s values. He is no longer employed by Moore Capital Management,” a Moore spokesperson said in a statement, according to the paper. The reported $20 million home was rented for a 50-person fundraiser for an animal charity. The owners told the Post, “the only animals there were the people, a thousand of them,” and that the party “was like ‘Jersey Shore’ meets a frat party.”

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Shares of hedge fund favorite Humana fell more than 9 percent after dropping more than 11 percent earlier in the day on Thursday after published reports said the U.S. Department of Justice has significant concerns about the health care insurer’s acquisition by Aetna. Shares of Aetna fell 4 percent. At the end of the first quarter, at least 81 hedge funds held a position in the stock, according to Goldman Sachs. They include New York-based Glenview Capital Management, the fifth largest shareholder with 4.31 percent of the shares. Humana was also Glenview’s largest U.S. stock position. In addition, 22 funds held Humana’s stock among their top-ten holdings. They include New York-based Och-Ziff Capital Management Group, New York-based D.E Shaw and San Francisco-based Farallon Capital.

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Two of 67 British hedge fund firms said they are mulling a move out of the country following the historic Brexit vote, according to a Preqin survey reported by Reuters. The report does not identify the firms. The survey also found that 17 percent of hedge fund managers were unsure whether they would eventually move their operations. However, 80 percent said they did not anticipate a move at all following Britain’s June 23 vote to leave the European union.

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Standard & Poor’s has raised questions about the long-term viability of offshore reinsurers created by hedge funds to provide so-called permanent capital for the investment firms, according to the Financial Times. The rating agency reportedly asserted that the reinsurers have not made money from their reinsurance business for more than four years, while investment income shrunk by nearly two-thirds last year. Of course, two of the most high-profile hedge fund managers have created affiliated offshore reinsurers: Daniel Loeb’s Third Point and David Einhorn’s Greenlight Capital.

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