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No surprise, the Blackstone Group (NYSE: BX) posted a horrible fourth quarter. The firm, which is massive private equity firm, suffered a loss of $827.1 million. Basically, the firm had to recognize that the values of its portfolio are shrinking. Oh, and there will be no cash distribution for the quarter.
Yet, Blackstone's stock spiked 25% to $4.87.
In early December, the powerhouse private equity shop, the Carlyle Group, announced layoffs of 10% of its workforce. Let's face it, there's not much deal making lately.
Well, now it looks like another biggie in private equity is letting go of workers: the Blackstone Group LLP (NYSE: BX).
In all, the cuts are expected to come to 70 positions (the firm has about 1,300 employees), according to Bloomberg.com.
Back in November, Blackstone's chief, Stephen Schwarzman, was actually bullish on things. This was despite a terrible Q3, in which the firm reported losses of $502.5 million, or $0.44 per share.
For the most part, Schwarzman is eyeing some good deals (although, there has yet to be much activity). Also, he thinks there will be lots of growth in restructuring. In fact, General Motors (NYSE: GM) has hired Blackstone to help with restructuring options.
Despite all this, investors are quite skeptical of Blackstone. Simply put, the firm's portfolio write-downs do not seem to reflect the severe economic environment. Then again, Blackstone's shares have continued to languish.
GSO Capital Partners LP got its start in 2005 and has been growing at a stunning rate. At present, the hedge fund has about $8 billion under management. | # | Blogger | Posts | Cmts |
|---|---|---|---|
| 1 | Joseph Lazzaro | 107 | 0 |
| 2 | Tom Johansmeyer | 98 | 3 |
| 3 | Connie Madon | 50 | 0 |
| 4 | Steven Mallas | 43 | 0 |
| 5 | Mark Fightmaster | 42 | 0 |
| 6 | Tom Taulli | 40 | 0 |
| 7 | Steven Halpern | 31 | 0 |
| 8 | Trey Thoelcke | 29 | 0 |
| 9 | Melly Alazraki | 26 | 0 |
| 10 | Zac Bissonnette | 24 | 0 |
| 11 | Paul Foster | 24 | 0 |
| 12 | Brian White | 22 | 0 |
| 13 | Brent Archer | 21 | 0 |
| 14 | Jon Ogg | 21 | 0 |
| 15 | Jim Cramer | 21 | 0 |
| 16 | Elizabeth Harrow | 18 | 0 |
| 17 | Eric Buscemi | 17 | 0 |
| 18 | Sheldon Liber | 13 | 0 |
| 19 | Michael Fowlkes | 8 | 0 |
| 20 | Beth Gaston Moon | 8 | 0 |
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