This content is from: Portfolio

The Morning Brief: Raj Gupta's Sentencing; Blackstone's Hedge Fund of Funds

Rajat Gupta is going to prison for two years. The former Goldman Sachs director, who faced as much as 10 years in prison, was sentenced Wednesday for his role in the insider trading scandal that resulted in the conviction of Galleon Group LLC co-founder Raj Rajaratnam, who is scheduled to report to prison on Jan. 8. Rajaratnam was also fined $5 million. Steve Cohen’s SAC Capital reported a stake of over 1.15 million shares, or 5.1 percent of Open Table, which provides online restaurant reservations throughout the United States, as well as in Canada, Germany, Japan, Mexico, and the United Kingdom. The stock Wednesday closed at $46.15. Blackstone Group LP is planning to trot out a hedge fund of funds and thinks it can raise between $2 billion and $3 billion for the offering. The alternatives investment giant, which has $205 billion in assets, until now has concentrated more on private equity and real estate. Greenlight Capital’s David Einhorn is taking on a new target: The Federal Reserve Bank. No, he has not found a way of shorting its policies. However, did criticize its latest stimulus plan. "What once looked like a purchasing spree of unimaginable proportions is now just the monthly budget," Einhorn said in a quarterly letter to investors.

Cantor Fitzgerald Investment Advisors, L.P. announced plans to assume the investment management responsibilities for the fund of hedge funds products of Coast Asset Management. CFIA will become investment advisor to the Coast Diversified Funds and other Coast multi-manager fund of hedge fund products. Coast specializes in fixed income arbitrage and structured products.

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