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The Morning Brief: Cooperman's Omega Advisors Gets SEC Wells Notice
Say it ain’t so. Omega Advisors’ Leon Cooperman and his New York hedge fund firm have received a Wells Notice from the Securities and Exchange Commission stemming from the regulator’s probe of possible securities regulations. The SEC has been investigating Omega’s trading in Atlas Pipeline Partners, which took place in July 2010. The notice indicates that Cooperman and Omega may be charged civilly.
According to the Wall Street Journal, Cooperman sent a letter to investors informing them of this development and asserting he was innocent of any wrongdoing. “It took me 50 years to get where I got, and I’m not going to let these guys change my legacy,” said Cooperman, who reportedly invoked his Fifth Amendment privilege and did not testify. The Wall Street Journal earlier reported that during a two-year period, 20 percent of individuals who received a Wells Notice did not wind up being charged.
Cooperman, a one-time Goldman Sachs partner, has one of the best reputations among hedge fund managers and on Wall Street. The billionaire has taken the Giving Pledge, which means he promises to leave at least half his fortune to charity.
BH Macro is down 2 percent this month through March 18. As a result, the publicly listed fund, which invests most of its assets in the Brevan Howard Master Fund, is off by 0.70 percent for the year to date. The funds are managed by London-based Brevan Howard Asset Management.
Shares of Valeant Pharmaceuticals International jumped another 10 percent and are now up 18 percent over two days after the drug company announced plans to replace its chief executive officer.
SunEdison plunged 26 percent, to close at $1.49, its lowest price this month and just off its all-time low of $1.33. The one-time hedge fund favorite is already off nearly 70 percent just in this calendar year.
Cheyne Capital Management has raised $770 million for Cheyne Real Estate Credit Holdings Fund III. This was 18 percent above its target. Altogether, the London alternative investment firm has $2.1 billion in real estate assets. CRECH III provides real estate loans.