Top Hedge Fund News, Member Posts, Hedge Fund Daily Indices and more!

5yrs ago Hedge Fund dealbreaker Views: 340

‘Captain Magic’ pulls a $23 million countersuit out of a hat!

When sailing the seven seas aboard his yacht, Sea Force One, GLG Partners co-founder Raffaele Costa prefers to be called by his self-applied nom de mer, “Captain Magic.” But his claims to supernatural abilities did not stop when his 177-foot pleasure boat pulls in to dock. No: Turns out he believes his Tyndaris Investments’ artificially-intelligent algorithmic-trading system works wonders, as well. Or, at least that’s what he allegedly told Samarthur Li Kin-kan.

Li’s investment company is counter-suing for $23 million claiming that Costa, a former founding partner at rival GLG Partners, overpromised what he could deliver with the technology used to make algorithm-driven trades….

In 2017, Costa managed to persuade the 45-year-old son of Hong Kong billionaire Samuel Tak Lee to open a $5 billion account.

Well, show us the magic!

Lawyers for Li’s British Virgin Islands vehicle MMWWVWM Ltd., referred to in court as VWM, said the fund lost $20.5 million in a single day on Feb. 14 following other losses in December and January.

Well, Li decided he’d had enough of the money-losing smoke-and-mirrors after just three months. But Costa has proven superhuman (although perhaps not unusually so for hedge fund managers) in one respect, specifically in his level of chutzpah.

Costa’s Tyndaris Investments is suing Samathur Li Kin-kan for $3 million of unpaid fees for managing his money, according to court documents.

‘Captain Magic’ Clashes With Tycoon Over $5 Billion Hedge Fund [Bloomberg]


Today's Hedge Fund Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.