Spinning Hedgie Caught Off Balance (Again)

In June, a New York jury aquitted broker Christopher Carter of assaulting hedge fund manager Stuart Sugarman over an altercation during a spinning class in the Equinox fitness club on the Upper East Side in August 2007.

Sugarman, 48, apparently upset Carter, who became increasingly annoyed that his fellow spinner was excitedly shouting 'Woo-Woo', 'Good Burn' and 'You, Go Girl' as he furiously burnt off those calories. After twice asking the instructors to quiet Sugarman down, Carter, 46,  grabbed hold of the handlebars of Sugarman's bike, tilted it back and let it go. Sugarman said that the force of the bike falling to the ground caused a herniated disc in his neck. The New York Post now reports that Sugarman was back in court again last week, this time suing the gym for negligence, claiming that the instructors were responsible for Carter's actions as they should have stepped in if he (Sugarman) was being a nuisance. That claim, before a Manhattan judge, failed too. Sugarman's claims against Carter are said to be ongoing.

FINalternatives reports that the $10,000 lifeguard statue stolen from alleged fraudster Bernie Madoff's Palm Beach estate last week, has been found by two pest control workers and returned to police authorities. The statue is said to have had a note attached: 'Bernie the Swindler. Lesson - return stolen property to rightful owners'. Police believe that someone was trying to make a point. In the meantime, The Wall Street Journal reports that Madoff has made good on his promise to provide a detailed list of his personal assets to US regulator the Securities and Exchange Commission.

Bloomberg reports that John Paulson, the man who runs the $36bn hedge fund firm Paulson & Co, has spoken out against fellow industry professionals who block client redemption requests. He said in his 2009 outlook to investors: 'We think it's a mistake for managers to use gates and other tools to limit investor access to their funds. While we recognise the difficulties of the current environment, we think it is a manager's responsibility to raise liquidity to meet the redemption needs of their investors'.

Finally, The Times reports that hedge fund GLG has suspended its quarterly dividend payments in an effort to conserve cash.

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