BloggingStocks

TPG gets nuked on WaMu investment

Tom Taulli — Fri, 26 Sep 2008 17:01:00 EST

Filed under: Private Equity, JPMorgan Chase (JPM), Washington Mutual (WM)

Even for the tier-1 private equity operators, a $1.3 billion loss is a big deal - especially when in comes in about five months. This is what happened today with TPG, which was a major investor in Washington Mutual (NYSE: WM). Of course, the bank's shares were virtually wiped out today because of a federal intervention that resulted in JP Morgan Chase & Co. (NYSE: JPM) owning the assets.

Interestingly enough, TPG has a long history with distressed investing. In fact, the company's founder, David Bonderman, made a fortune from the S&L crisis during the early 1990s.

But no doubt, today's environment is without any precedent. No one seems to have any clue about what's happening - which can make investing a dicey game.

True, distressed investing can result in hefty returns. It's important to keep in mind that the risks are substantial. Although, it sill looks like a variety of private equity firms still have an appetite for these plays, such as Fortress Investment Group LLC (NYSE: FIG).

However, the big beneficiaries may not necessarily be private equity firms. Even the recent loosening of regulations, private equity firms are likely only to make minority investments in banks.

Instead, it may be the major banks - such as JP Morgan - that will clean-up on the mess on Wall Street. They have strong balance sheets and tremendous asset bases to make such deals payoff.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

TPG gets nuked on WaMu investment originally appeared on BloggingStocks on Fri, 26 Sep 2008 17:01:00 EST. Please see our terms for use of feeds.

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Cramer on BloggingStocks: KKR takes advantage

Jim Cramer — Mon, 28 Jul 2008 08:45:00 EST

Filed under: Daimler (DAI), Ford Motor (F), General Motors (GM), Private Equity, Market Matters, Blackstone Group L.P (BX), Initial Public Offerings, Cramer on BloggingStocks

TheStreet.com's Jim Cramer says KKR will join the list of buyout firms that fleece the small investor by going public.

Just what we need, a private-equity firm to go public. That worked just great with Fortress Investment (NYSE: FIG) (Cramer's Take), and it was terrific with Blackstone (NYSE: BX) (Cramer's Take). At least this one is some sort of reverse merger that might not inflict too much pain on the public.

Of course, folks in this business are displaying their usual lack of shame. It would be an excellent time for them to have a good reason beyond employee retention; I mean if you are making all of that money, what's the issue with retention? It would also be terrific if they were doing well, but there hasn't been a deal in so long that it would be a bit of an oddity if they were doing anything other than making a lot of fees.

But Kohlberg Kravis Roberts is a storied lot, so I figure the public will lap it up and all will be well until the losses start.

Or maybe this will be the one that's in the blue moon and the public will not be pants'd by the really smart bankers.

Continue reading Cramer on BloggingStocks: KKR takes advantage

Cramer on BloggingStocks: KKR takes advantage originally appeared on BloggingStocks on Mon, 28 Jul 2008 08:45:00 EST. Please see our terms for use of feeds.

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Option update: Fortress Investment down on holdings concern

Paul Foster — Thu, 01 Nov 2007 14:00:00 EST

Filed under: Marketing and Advertising, Options, Entrepreneurs, Blackstone Group L.P (BX)

Fortress Investment (NYSE: FIG) --

Fortress Investment is a global alternative asset manager with approximately $43.3 billion assets under management as of 6/30/07.
FIG is recently down $2.07 to $19.98.
FIG call option volume of 978 contracts compares to put volume of 6,248 contracts. FIG November option implied volatility of 105 is above its 26-week average of 49 according to Track Data, suggesting larger risk.

Blackstone Group (NYSE: BX) --

Blackstone Group is a global alternative asset manager and provider of financial advisory services.
BX is recently down $0.46 to $24.97.
BX will report EPS & give guidance in the next two weeks.
BX November option implied volatility of 52 is above its 4-month average of 42 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Fortress Investment down on holdings concern originally appeared on BloggingStocks on Thu, 01 Nov 2007 14:00:00 EST. Please see our terms for use of feeds.

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Option update 6-22-07: FIG volatility flat as investors compare to Blackstone

Paul Foster — Fri, 22 Jun 2007 11:39:00 EST

Filed under: IAC/InterActiveCorp (IACI), Blackstone Group L.P (BX)

Fortress Investment (NYSE: FIG) volatility flat. Investors compare FIG to Blackstone (NYSE: BX). FIG, a global alternative asset manager with approximately $36 billion assets under management, has a market cap of $10.5 billion. Blackstone, a private equity firm, initial public offering was priced at $31 a share, valuing BX at about $33.6 billion. BX manages $88.4 billion, including $19.6 billion in its most recent buyout fund according to Bloomberg. FIG overall option implied volatility of 38 is near its 21-week average according to Track Data.

IAC/InterActive (NASDAQ: IACI) option implied volatility flat at 27. IACI closed at $35. Stifel Nicolaus said on 6/20/07 that it was "upgrading shares of IACI to Buy from Hold and initiating a $42 12-month target price. Our upgrade of IACI is based on 60% probability of a material corporate event occurring within the next 6-months." IACI overall option implied volatility of 27 is near its 26-week average of 25 according to Track Data, suggesting non-directional price fluctuations.

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 6-22-07: FIG volatility flat as investors compare to Blackstone originally appeared on BloggingStocks on Fri, 22 Jun 2007 11:39:00 EST. Please see our terms for use of feeds.

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Hedge funds jump into political race

Brandon Barker — Thu, 25 Jan 2007 14:15:00 EST

Filed under: Other Issues

As a follow-up to an earlier post -- Politico hedge funds: No experience? no problem -- here's a New York Times report on hedge fund chiefs entering the world of political fund-raising.

With current hedge fund coffers reaching the likes of $1 trillion, it would seem a matter of course that managers would want to exert their political influence, much like Hollywood and Tech in the recent past. And, according to the article, between the 2002 and 2006 elections, hedge fund donations have more than doubled in size.

But the connections go deeper than donorship. In addition to former SEC chairman Richard Breeden and former Secretary of State Madeleine Albright -- both of whom are now bona fide hedge fund managers -- 2008 Presidential hopeful John Edwards recently served as a "senior advisor" to $29.7 billion hedge fund Fortress Investment. And $12 billion fund Avenue Capital, a supporter of the Clintons, recently hired their daughter, Chelsea.

As the trend of denying public funds escalates, hedge funds' deep pockets could earn them an influence far beyond the financial realm.

B. Brandon Barker is the author of Operation EMU.

Hedge funds jump into political race originally appeared on BloggingStocks on Thu, 25 Jan 2007 14:15:00 EST. Please see our terms for use of feeds.

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