This content is from: Portfolio

The Morning Brief: Former Moore Trader to Face Charges in the UK

A former trader for Louis Bacon’s Moore Capital Management is expected to be charged for his role in a major insider trading scandal in the United Kingdom. Julian Rifat, who was arrested nearly four years ago, will be charged by the Financial Conduct Authority by early next month, according to published reports. Rifat would become the ninth person to be charged in what is called Operation Tabernula, making him by far the highest profile participant. Rifat was an execution trader in the London office of Moore.

Tough times for Edward Lampert’s ESL Partners. Shares of Sears Holdings, its largest among four major investments, fell nearly 14 percent on Friday to close at $36.72 after the struggling retailer reported a large decline in same-store sales and holiday sales and warned it would lose $1.3 billion to $1.4 billion in the fiscal year that ends February 1. Since the first day of trading in the new year, the stock has fallen six out of seven trading days and lost about 25 percent of its value. The decline more than offsets last year’s 18 percent or so rise in the company’s shares. Meanwhile, shares of Sears Hometown and Outlet Stores, a home appliance and gardening supplies chain spun off from Sears in October 2012, is off more than 11 percent already this year after losing roughly 21 percent last year.

Philip Hempleman’s Ardsley Advisory Partners has taken an activist stake in World Energy Solutions, a $53 million market cap provider of energy management services to the business community. In a letter to Edward Libbey, the chairman of the board of directors, the Stamford, Connecticut hedge fund, which owns 6.8 percent of the shares, said the company “has the capability to become a competitive frontrunner in an expanding, multi-billion dollar market.” It called on the company to evaluate all strategic alternatives to maximize shareholder value, including a sale.

Related Content