Continue reading Managed Account Allocations to Surge in 2010

Managed Account Allocations to Surge in 2010 originally appeared on BloggingStocks on Wed, 10 Feb 2010 14:45:00 EST. Please see our terms for use of feeds.

Continue reading Insurance Companies to See Hot Cat Bond Market

Insurance Companies to See Hot Cat Bond Market originally appeared on BloggingStocks on Mon, 08 Feb 2010 09:30:00 EST. Please see our terms for use of feeds.

Out of every five hedge fund managers, one is prone to fibbing, according to research from NYU's Stern School of Business. This is likely to pour salt in the wound of an industry that's been in rough shape for the past year. And, it'll probably add a bit more pressure for transparency.

The NYU report uses data from 444 due diligence reports that investors commissioned from 2003 to 2008. The research team put the information against the test of reality to see where the differences are. The most common stretch of the truth was the amount of their own money the managers put into their hedge funds, fund performance and regulatory and legal histories. One fund inflated its assets under management by $300 million, while another wasn't up front about one of its partner's legal records (he had stolen a Chinese junk).

Continue reading Are hedge fund managers stretching the truth?

Are hedge fund managers stretching the truth? originally appeared on BloggingStocks on Wed, 14 Oct 2009 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Bank of America (BAC) rises on institutional buying

Bank of America (BAC) rises on institutional buying originally appeared on BloggingStocks on Thu, 13 Aug 2009 12:30:00 EST. Please see our terms for use of feeds.

What began as a $6 million endeavor in 1996 is coming to a (partial) close. Atticus Capital is shuttering two of its three hedge funds and is returning $3 billion to shareholders. The move is strictly a personal one, according to CEO Timothy Barakett in a letter to investors. Atticus is slicing its flagship fund and a smaller one, but is keeping its European Fund, which has $1.2 billion under management.

Prevailing market conditions led Barakett to begin liquidating many of the Atticus Global portfolio's holdings, an effort he expects to be complete by the end of September. Investors can expect to receive around 95% of their money in early October, with the rest being disbursed after the fund's final audit later in the year.

Continue reading Atticus to cut two of three hedge funds

Atticus to cut two of three hedge funds originally appeared on BloggingStocks on Wed, 12 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

If you think that the past 12 months have had any impact on the "2/20" hedge fund pricing model, please say hi to the Easter Bunny for me.

According to Bloomberg News, reductions from the 2% fee based on assets under management and 20% of investment gains aren't coming anytime soon. Further, the hedge fund community will only trade money for other advantages -- such as longer lockup periods and high minimum commitments (e.g., of at least $100 million).

And, it's worse if the fund is a top performer. After all, why change if you're making money? It seems that there's nothing quite like results for shutting up limited partners.

Continue reading Hedge funds refuse to move on fees

Hedge funds refuse to move on fees originally appeared on BloggingStocks on Mon, 03 Aug 2009 14:20:00 EST. Please see our terms for use of feeds.

Hedge fund manager Michael Regan has pleaded guilty to running a Ponzi scheme. Manager of the Massachusetts-based River Stream Fund, he admitted to defrauding around 70 investors. The fund held just shy of $20 million in assets ... despite the relatively meager $101,600 sitting in its accounts. The fund purported to return 20 percent a year since 2001, paying out $9 million in "profits" and returned capital.

Continue reading Ponzi manager pleads guilty and settles civil charges

Ponzi manager pleads guilty and settles civil charges originally appeared on BloggingStocks on Fri, 26 Jun 2009 15:00:00 EST. Please see our terms for use of feeds.

Pequot Capital Management is coming to an end, closing the book on two decades of hedge fund history. Arthur Samberg, at one point the biggest hedge fund manager in the world, is closing the company as a result of a Securities and Exchange Commission (SEC) insider trading investigation.

At its peak in 2001, Pequot had $15 million in assets under management. By November 2008, it was only $4.3 billion ... and $3.47 billion as of May 15, 2009, according to a regulatory filing.

Continue reading Insider trading probe to shut Pequot Capital Management

Insider trading probe to shut Pequot Capital Management originally appeared on BloggingStocks on Thu, 28 May 2009 08:20:00 EST. Please see our terms for use of feeds.

	U.S. consumers wash, dry clothes - good news for the economy!
	Frozen salaries and smaller bonuses at Google
	Will $1 trillion toxic waste plan enrich hedge fund billionaires?
	Light at the end of the economic tunnel, but not until 2010

DailyFinance today: consumers wash, dry clothes and it's good for the economy, Google freezes salaries and cuts bonuses, will toxic waste plan enrich hedge fund billionares, and is there light at the end of the economic tunnell? originally appeared on BloggingStocks on Wed, 25 Mar 2009 18:00:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Winners of 2008. See all 20.

Lots of people thought real estate was overpriced. Many worried that banks were giving out mortgages too cheap. But what did you do about it? (Either to help the situation or to make money.) Jeff Greene, a real estate mogul in California, actually found a way to bet against the subprime mortgage folly. He made $450 million -- at least that was the count earlier this year.

Well, he didn't just think of it on his own. He basically took the idea that his friend, hedge fund manager John Paulson, had. Paulson thought that, as an individual, Greene wouldn't be able to do this complex a transaction. According to the Wall Street Journal he even used special software so investors in a hedge fund Paulson created just to exploit the subprime crisis couldn't pass on his strategy.

How Greene and Paulson made money involves two financial terms you've probably had to learn this year and never want to hear again. Collateralized debt obligations (CDOs) are the way mortgages are packaged and sold to investors in various slices of risk. Credit default swaps are the holders of those investments insured themselves -- by buying what was like unregulated insurance from one another. The credit default swaps are what got so many big companies in trouble -- they had to pay up on investments that went bad. So Paulson shorted CDOs and bought some credit default swaps.

Continue reading Money winners of 2008: Jeff Greene shorted subprime

Money winners of 2008: Jeff Greene shorted subprime originally appeared on BloggingStocks on Mon, 15 Dec 2008 12:42:00 EST. Please see our terms for use of feeds.

For Citigroup (NYSE: C) to regain the confidence of Wall Street it will have to start doing a few things right. Firing 53,000 people probably does not qualify. After that news, Citi hit another 52-week low at $7.80, down from a 52-week high of $35.29.

More losses won't help. Some bank analysts believe that Citi's consumer credit portfolio and derivative assets will cause negative earnings right through 2009.

Now, the big bank gave investors another reason to turn their backs as it closed one more of its hedge funds, which lost 53% of its value in a month. Taking the value of assets down that much in such a short period probably requires as much skill as showing an increase of a similar size. In other words, it is extraordinary.

According to the FT, "Citigroup is liquidating its Corporate Special Opportunities hedge fund after it lost 53 per cent of its value last month, marking the ninth time in recent months that the bank has had to close or rescue a fund." At its peak, the fund had over $4 billion in assets.

The point in this is not only that Citi keeps making mistakes. In addition, the bank might as well fire its entire public relations and corporate communications staff. They are of no use to the firm as long as it keeps cutting its own throat in front of the press and shareholders. Dispensing with the PR group could be part of the big, planned layoff. No one would miss them

Douglas A. McIntyre is an editor at 24/7 Wall St.

Citigroup proves it can do little right; closes another hedge fund originally appeared on BloggingStocks on Wed, 19 Nov 2008 08:36:00 EST. Please see our terms for use of feeds.

The people at Goldman Sachs (NYSE: GS) are supposed to be genetically different from the rest of Wall Streeet. They are supposed to be smarter and more astute at taking risks. That may be why the firm's losses have not been as great as those at most other financial companies.

The folks at Goldman looked downright human as news came out that one of its large hedge funds is $1 billion lighter than it was at the beginning of the year. According to the FT, "Goldman Sachs Investment Partners, which was hailed in January as one of the biggest hedge fund launches, raising more than $6bn, has told investors that it had lost $989m by September."

Goldman did have an excuse. The firm said that the hedge fund business was bad everywhere. Cold comfort to investors who lost money.

Unstated by most ,but nonetheless true, missteps by Goldman have hurt its image and brought it down to the level of most other investment banks. Its image as "elite" probably changed with its transformation to being a commercial bank to qualify for one of the federal programs that provides financial aid to U.S. banks. Wall Street wondered why the premier company in the industry would have to do that.

The news about its big hedge fund loss is just one more piece of data. Goldman is no longer special. The credit crisis has made it "ordinary" and there is not much evidence that it can recover from that fall.

Douglas A. McIntyre is an editor at 247wallst.com.

Goldman Sach fund off by $1 billion originally appeared on BloggingStocks on Tue, 04 Nov 2008 09:28:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Investors are taking their money out of hedge funds more now that at any time over the past 10 years, according to the Wall Street Journal. Firms are bracing for the end of June when the next big wave will hit.
• First it was a demand for management changes, and now shareholders, including one time director Eli Broad and fund managers Shelby Davis of Davis Selected Advisors and Bill Miller of Legg Mason Inc (NYSE: LM), are again upset with American International Group Inc (NYSE: AIG) and want changes in the boardroom as well, the Wall Street Journal reported.
• The Wall Street Journal reported that Citigroup Incorporated (NYSE: C) will close Old Lane Partners, a hedge fund co-founded by CEO Vikram Pandit.

• Spotlight Capital is increasing pressure on Chico's FAS Inc (NYSE: CHS) and said it has been in touch with 25 major shareholders in order to oust CEO Scott Edmonds and unseat board member John Burden, who are accused of having a conflict of interest, the New York Post reported.

• Advanced Micro Devices Inc (NYSE: AMD) denied reports certain of its new dual-core chip, code-named Kuma, have been canceled, according to CNet. A spokesman for the company said that the launch of Kuma, scheduled for the second half of 2008, remains on track.

Newspaper wrap-up: Citigroup to shut Old Lane Partners hedge fund originally appeared on BloggingStocks on Thu, 12 Jun 2008 08:00:00 EST. Please see our terms for use of feeds.

Dirty traders scare away hedge fund investors originally appeared on BloggingStocks on Tue, 11 Mar 2008 18:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to sources, the Wall Street Journal reported that Countrywide Financial Corporation (NYSE: CFC) is under investigation for possible securities fraud. People close to the situation say the inquiry is in its early stages but it involves an inquiry into alleged misrepresentations of the company's financial position and the quality of its mortgage loans.
• The Financial Times reported that Credit Suisse Group (NYSE: CS) has teamed up with three leading academics to create products that will deal with the potentially lucrative hedge fund replication industry. The upcoming suite of products will attempt to mechanically replicate the returns of the major hedge fund strategies.

• Rio Tinto Plc (NYSE: RTP) is expected to announce this week that its aluminum business is worth up to $20B more than current estimates, after a rise in aluminum prices; the UK Times reported that the statement could raise pressure on BHP Billiton Limited (NYSE: BHP) to increase its takeover bid for Rio.
• Asset manager Ameriprise Financial Inc (NYSE: AMP) is pairing up with MasterCard Incorporated (NYSE: MA), the Associated Press reported, to become a credit card lender for the first time, the two companies reportedly plan to announce today.

Newspaper wrap-up: Countrywide Financial investigated by the FBI originally appeared on BloggingStocks on Mon, 10 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal's "Heard on the Street" reported that VCG Special Opportunities Master Fund, a $58M asset hedge fund which is owned by an investment firm that also owns a Puerto Rican investment bank, is separately suing Citigroup Incorporated (NYSE: C) and Wachovia Corporation (NYSE: WB) for requiring it to pay money from "credit default swaps" as the value of mortgage backed bonds fell.

• In an attempt to cut back its growth plans due to higher fuel costs, AirTran Holdings Inc (NYSE: AAI) CEO Bob Fornaro said the Orlando-based airline will sell two jets next month. The Orlando Sentinel reported that record fuel costs could also impact AirTran's negotiations with its pilots union.
• Fnac is in talks with Apple Inc (NASDAQ: AAPL) to sell the iPhone in France, Le Figaro reported. The head of PPR SA's Fnac Chain, Denis Olivennes, said France Telecom's (NYSE: FTE) exclusivity rights for the iPhone in France are "inadmissible."

• Bloomberg reported that the head of Dubai International Capital, Sameer al-Ansari, said that as losses increase from the subprime mortgage market turmoil, Citigroup may need additional capital from outside investors.

Newspaper wrap-up: Fnac in talks to sell iPhone in France originally appeared on BloggingStocks on Tue, 04 Mar 2008 08:55:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that the focus of reports of four deaths and 350 allergic reactions to Baxter International Inc's (NYSE: BAX) generic version of the blood thinner drug Heparin, and the ingredients supplied by a Chinese manufacturer, also includes Wisconsin-based Scientific Protein Laboratories, a co-owner of the Chinese manufacturing plant, and majority owned by American Capital Strategies Ltd (NASDAQ: ACAS), a Maryland buyout firm.
• Citigroup Incorporated (NYSE: C) has suspended investors at its CSO Partners hedge fund from withdrawing their money after they attempted to pull more than 30% of the fund's nearly $500M in assets, the Wall Street Journal reported.
• AT&T Inc (NYSE: T) is seeking more revenue from India as it tries to expand its consumer mobile phone operations outside the U.S, the Financial Times reported.

• According to the New York Times, the FDA broke its own rules by approving for sale Baxter International's Heparin without first inspecting a Chinese plant where the drug's key ingredient is made.

Newspaper wrap-up: American Capital Strategies tied to Baxter's Heparin generic problems originally appeared on BloggingStocks on Fri, 15 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

Fishing for returns... and coming up empty originally appeared on BloggingStocks on Thu, 17 Jan 2008 18:59:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Looking to enter the Japanese market, sources familiar with the matter said that Apple Inc (NASDAQ: AAPL) CEO Steve Jobs recently met with NTT DoCoMo Inc (NYSE: DCM) to discuss a deal to offer its iPhone, the Wall Street Journal reported.
• Nike Inc (NYSE: NKE) is in talks with Mike Ashley to try and persuade the entrepreneur to not block its £285M takeover offer for Umbro, the Financial Times reported.

• The Detroit News reported that in an effort to cut costs, General Motors Corporation (NYSE: GM) is looking to form a deal with the United Auto Workers on a buyout program for veterans.

• According to two people familiar with the fund, The Goldman Sachs Group Inc (NYSE: GS) is looking to start Goldman Sachs Investment Partners, its newest stock hedge fund, with as much as $10B, Bloomberg reported.

Newspaper wrap-up: Apple in talks with DoCoMo for iPhone in Japan originally appeared on BloggingStocks on Tue, 18 Dec 2007 08:40:00 EST. Please see our terms for use of feeds.

Continue reading Is it time to jump into financial stocks?

Is it time to jump into financial stocks? originally appeared on BloggingStocks on Mon, 08 Oct 2007 16:45:00 EST. Please see our terms for use of feeds.