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The Morning Brief: Einhorn Prevails in Court; Brummer Pulls Out of Mosaic

U.S. District Judge Richard Sullivan handed Greenlight Capital hedge fund manager David Einhorn a court victory over Apple, ordering the computer giant to halt collecting shareholder votes on a controversial proposal to limit the company’s ability to issue preferred stock, Reuters reported Friday. Einhorn, who sued Apple to try and unlock the company’s $137 billion cash trove, was granted a motion for a preliminary injunction keeping Apple from moving forward with the vote on the proposal.

Tristan Edwards, a former trader at the U.K.’s Brevan Howard Asset Management, has raised seed investment for a hedge fund in Singapore focused on Asian stocks using a short-term trading strategy. According to Bloomberg News, Edwards’ Mosaic Asset Management will launch the strategy on March 1 with about $100 million, part of which is coming from a joint venture between Woori Absolute Partners and NewAlpha Asset Management.

After less than two years of operation, Benros Capital Partners, a London hedge fund founded by former Goldman Sachs Group traders, is shutting down, Bloomberg News said, citing the withdrawal by Swedish anchor investor Brummer & Partners. Brummer seeded the fund with $300 million at its launch in 2011, but the investor said the fund “has not lived up to expectations.”

The SS&C GlobeOp said its Forward Redemption Indicator for February showed notifications of 3.96 percent, up from 2.04% in January. Over the history of the index, February redemption notices typically fall well below average. SS&C GlobeOp’s data on the GlobeOp platform represents approximately 10% of the hedge fund industry.

Separately, Tom Sandell, founder and CEO of Sandell Asset Management in New York, reports that the firm’s flagship Castlerigg Master Investments was up 4.04 percent net in January and up 4.71 percent year-to-date through February 15, according to a source familiar with the fund.

Overseas, HSBC’s global asset management arm is reportedly shutting down an India-focused hedge fund, India Alpha, managed by Sanjiv Duggal, Reuters said. The report cited cash withdrawals from investors as the reason. The fund was launched in 2007.

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