Markets were roiled by rumors that Mortadella Investment Group LLC is in discussions with a government-controlled wealth fund from Asia or the Middle East. The fast-growing multi-strategy hedge fund is said to be looking for an infusion of cash to buy investment banks.
Manager Jeff Mortadella, a reclusive financier who made a fortune trading cured meat futures and later diversified into loans and media, declined to comment through a spokeswoman.
Bank stocks shot up in expectation of an acquisition by Mortadella but went down later in the day as traders lost hope of a deal.
The US dollar lost ground as some observers argued that the sale is troubling. “When an American institution like Mortadella may be owned by a foreign government, it’s no surprise that Americans feel the country has lost its way,” said professor Joshua Joshing from Dunkel University Business School.
Mr. Mortadella was last seen last month attending a lavish gala for the benefit of the Foundation for Body Painting and Tattoo Arts, a philanthropic organization he set up.
