Hottest Links edition for Tuesday Afternoon (see Monday’s hottest links here). We hope to make hottest links a regular feature and this is just the beginning of a great linkfest to appear regularly. Feel free to send us feedback on our Hottest Links. Our top story is a superb piece of journalism by Roddy Boyd on a famous person on Twitter who ‘ran a $200 million’ hedge fund and a newsletter ((no it is not Whitney Tilson :)) David Letter. Boyd uncovers tons of evidence from investors, former ’employees etc. on what may be the worst ponzi scheme in history. In other sad news, The New York Times has an excellent piece on someone who makes slip and fall lawyers look good. This patent troll has sued 1,638 companies in just the past five years. Plus, value stocks, China, housing, earnings and more!

Check out our afternoon edition of hottest links later today.

Hottest Links

Hottest links for Tuesday July 16, 2013

Top Story

The Erstwhile Hedge Fund King of Akron, Ohio’s Very Difficult Summer

On Aug. 4, 2012, a bright young mortgage department employee at JPMorgan Chase & Co. (NYSE:JPM) named Ben Sayer was all smiles.

[Roddy Boyd, sirf-online]

Hottest Links: Macro

Finance set to surpass tech as most-profitable U.S. industry

SAN FRANCISCO — Since the near-collapse of the U.S. financial sector in 2008, the technology industry consistently has been the most-profitable part of this country’s economy.

[John Shinal, US Today]

Rising Rates: Time to Position, Not Panic

It finally happened. After endless discussion about the potential for rates to rise, they finally did—in a big way.

[Douglas J. Peebles, prag Cap]

Has Patent, Will Sue: An Alert to Corporate America

If you’re a corporate executive, this may be one of the last sentences you want to hear: “Erich Spangenberg is on the line.” Invariably, Mr. Spangenberg, the 53-year-old owner of IPNav, is calling to discuss a patent held by one of his clients, which he says your company is infringing — and what are you going to do about it?

[David Segal, NY Times]

The wastefulness of automation

Chris Dillow observes that ”one function of the welfare state is to ensure that capital gets a big supply of labour, by making eligibity for unemployment benefit conditional upon seeking work.

[Frances Coppola, Credit Writedowns]

The Big Hedge Fund Backlash

Over the last month, the low hum of anti-hedge fund murmuring has exploded into a full-on festival of malice – thousands of investors, having spotted the 2-and-20 emperors sans clothing for the umpteenth time, are now reveling in their newfound courage to say it out loud.

[Joshua M Brown,The Formed Broker]

Economic growth: how low will China’s masters let it go?

CHINA’S second-quarter growth, out today, is expected to show the slowing of its economy has continued, but analysts are taking heart from assurances from Premier Li Keqiang that growth will not be allowed to fall much further.

[David Uren, The Australian]

Yes, the middle class has been disappearing, but they haven’t fallen into the lower class, they’ve risen into the upper class.

[Carpe Diem, AEI-Ideas]

Hottest Links: Companies

Ingersoll-Rand Pledges Allegion To The Spin

Months after caving into demands from activist investor Nelson Peltz to break itself up, Ingersoll-Rand (IR) has started releasing details on its commercial & residential security spinoff.

[Spin Doctor, Stocks Spinoffs]

S&P amazingly says no one should believe its ratings are independent and objective

Today US rating agency Standard & Poor’s told a court of law that it figured every reasonable investor would know its promise to objectively rate securities was mere “puffery,” like a used-car salesman who tells you the last owner of your car was an old lady who only drove it on Sundays.

[Tim Fernholz, Quartz]

Razors, Lighters, And Pens

“One lucky break, or one supremely shrewd decision — can we tell them apart? — may count for more than a lifetime of journeyman efforts.”  (The Intelligent investor, 1971 third edition, postscript)

[The Graham Disciple]

Citigroup profit jumps 42 percent on stronger markets

Citigroup Inc. (NYSE:C) posted a 42 percent jump in quarterly profit as bond trading revenue gained and stronger home prices helped the bad mortgages on its books, underscoring the bank’s recovery since the financial crisis.

[David Henry, Reuters]

AT&T agrees to buy Leap and expand into highly competitive prepaid wireless market

After the markets closed Friday, Dallas-based AT&T, Inc. (NYSE:T) said it had agreed to buy Leap Wireless International, Inc. (NASDAQ:LEAP) for $15 a share, or about $1.2 billion in cash.

[Gary Jacobson, Dallas News]

China Alleges GlaxoSmithKline Funneled Bribes Through Travel Agencies

As part of a broader crackdown into bribery and corruption, Chinese police accused British drug giant GlaxoSmithKline plc (ADR) (NYSE:GSK) on Monday of bribing officials and doctors by shuffling money through travel agencies.

[Jennifer Booton, FOX Business]

Hottest Links: Hedge Funds

Druckenmiller Joins Zuckerberg’s Immigration Reform Group

Duquesne Capital Management founder Stanley Druckenmiller is backing Facebook Inc (NASDAQ:FB) founder Mark Zuckerberg’s U.S. immigration reform campaign.

[FINalternatives]

Obama Admin. May Side With Argentina In Elliott Case

The Obama administration may take sides in the battle between Paul Singer’s Elliott Management and the government of Argentina, but not the side Singer would like.

[FINalternatives]

In Wake Of Ad Ban Lift, Firm Launches Investor Verification Service

Crowdentials, a startup offering regulatory compliance software, is launching its new Certified Accredited Investors program on July 25, in response to the Securities and Exchange Commission’s ruling to lift the ban on general solicitation

[FINalternatives]

Hottest Links: Funny

Mayor proposes city motto: ’77 Square Miles Surrounded by Reality’

Only in Madison could a quintessential, unforgettable dig at the city’s undeniable quirkiness have a chance at becoming its first official motto.

[Dean Mosiman, Madison]

NBA’s Baron Davis: I was ‘abducted by aliens’ in desert two weeks ago

The former New York Knicks player told the hosts of ‘The Champs Podcast’ that he made a visit to a flying saucer while driving through the desert from Las Vegas to L.A.

[Daniel Beekman, NY Daily News]

St. Louis loses American Mustache Institute

The American Mustache Institute announced on Friday it would trim the Gateway City’s upper lip and move its city affiliation to Pittsburgh.

[Nicholas J.C. Pistor, STL Today]