Magnetar Capital LLC, the Illinois hedge fund that quietly bought Teresa Huber’s vast rental home business this year and tried to get the property values cut in half to save on taxes, has scaled back its request as community officials decry the impact of the lost tax revenue.
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What are hedge funds?
Generally they are private partnerships that use a variety of investment strategies — including some that are very risky — with a goal of generating high returns. They are currently not regulated by the U.S. Securities and Exchange Commission, though large funds must register with the SEC and face certain other regulations. Unlike mutual funds, hedge fund managers are compensated as a percent of the returns they earn, creating an incentive to invest aggressively. As a result, hedge funds have often scored high returns for their very wealthy investors while incurring some spectacular losses.
Sources: Investopedia, BarclayHedge.com, SEC.com
Top property value reductions sought by Magnetar Capital LLC investors
Magnetar, an Illinois-based hedge fund, bought Huber Investment Corp. from Teresa Huber and is seeking reductions in property values to save on taxes in Montgomery County.
|Property address||Current county valuation||Taxpayer's proposed valuation||Disputed amount||Percent difference in proposed vs. current|
|5550 Huber Rd. (company headquarters)||$973,700||$121,754||-$851,946||-87%|
|5550 Taylorsville Rd.||$2,151,520||$410,430||-$1,741,090||-81%|
|5201 Taylorsville Rd.||$316,160||$70,944||-$245,216||-78%|
|5602 5728 Troy Villa Blvd.||$1,256,210||$377,046||-$879,164||-70%|
|8226 Schoolgate Dr.||$77,740||$26,750||-$50,990||-66%|
|8242 Schoolgate Dr.||$79,380||$27,625||-$51,755||-65%|
|5861 Troy Villa Blvd.||$65,930||$24,121||-$41,809||-63%|
|5602 5628 Troy Villa Blvd.||$1,011,600||$377,423||-$634,177||-63%|
|8293 Big Springs Ct.||$74,110||$27,950||-$46,160||-62%|
|5722 5728 Troy Villa Blvd.||$134,780||$52,367||-$82,413||-61%|
|8210 Schoolgate Dr.||$78,210||$31,300||-$46,910||-60%|
|8202 Schoolgate Dr.||$78,210||$31,314||-$46,896||-60%|
|8031 8317 Mount Everest||$3,800,640||$1,539,604||-$2,261,036||-59%|
|6376 Greenfield Way||$54,420||$22,440||-$31,980||-59%|
Magnetar Capital LLC property value appeals-By the numbers
|Original application||50 percent reduction on 818 properties valued at $91.3 million|
|Original estimated annual tax savings to company||$1.39 million|
|Board of Revision decisions||76 properties cut 49 percent to $2.8 million|
|Cases withdrawn by company||257 properties valued at $32 million|
|Open cases||29 percent reduction on 485 properties valued at $53.6 million|
|Current estimated annual tax savings to company||$524,668|
Source: Montgomery County Auditor's Office