28JAN09:
Q1-09 DOW: 8900
Q2-09 DOW: 7250
Q3-09 DOW: 5810
Q4-09 DOW: 3960
CITI NATIONALIZED
OBAMA GETS SICK 27AUG09:
Mini Crash 21SEP09 Predicted correctly:
Bailout=Bonuses
Demise of Bear Stearns
Demise of Lehman Bros.
Demise of AIG
Subprime would cause problems
Date of 2007 crash
CRAs were to blame
G20 riots were a party
Northern Rock run
Northern Rock Nationalization
HBOS and RBS demise
UBS really was Useless
Investors are really confused. I had an unpleasant meeting yesterday with a long term investor. Like many others they had been quite happy with a chirpy newsletter every quarter with some purple and blue defaulted excel pie charts and pseudo poetic economic commentary. That was until Madoff spoiled the party (remember him - short memory loss is a 21st century curse it seems).
Today they, and here I mean the buy side and the sell side, their stockholders and CYA credit and risk people, want more information.
They want to know what toothpaste I use, how I adhere to MIFID, how big is my internal audit department, and am I looking at implementing SOX? They want to know about style drift, pipes, ERISA monies and side pockets. They want every trade, position, the number of trade breaks, an analysis of my stock lending fees, the credit rating of my overnight money market funds, the succession planning, best execution, front running avoidance and a timesheet of every visit to the bathroom. On top of that they want Basel 2 reports, daily VARs and an API into our risk systems.
Of course they can have all of this this but it will push the management fee up to 15%. But they don't want to pay. And this is the real problem - transparency is not costless. It is Bloody expensive.
Movements I was slightly inconvenienced by the tube strike in London yesterday but not too much. The air con in my car failed but since it was pretty cold outside I need not have worried. I could have opened my windows but I am easily shocked by middle aged men wearing lycra. I mean cycling is about having as much resistance as possible to burn those calories, isn't it?
Being a maverick I have decided today, to join the cyclists. So if there is no newsletter tomorrow, it is likely I will be in a gutter somewhere at Hyde Park corner with the tire marks of a Aston Martin convertible all over my lycras.
On second thoughts I will get a cab. Thankfully they are so expensive these days, there are more orange lights than ever before.
Oil While the markets rally in some sort of time warp, we are pleased to see that Dubai is being saved. The buildings that are half complete are being finished and the SWF's are starting to swell up again. Oil is going up nicely and with this we should get some nice inflation and devaluing of debt.
Quantitative Easing is a waste of time. Just let OPEC push oil up to USD200 and that will do nicely.
The economy's gross domestic product grew by 0.1pc in May following a similar increase in April, according to estimates released on Wednesday by the National Institute of Economic and Social Research (NIESR).
"The monthly figures are inevitably erratic but the picture is coherent with the broader picture of stabilisation which has emerged since we first suggested that output had stopped falling," said Martin Weale, director at NIESR.
Fintag says So why are the people still grumpy? Unemployment rising, consumer spending down, credit near impossible to obtain, a lack of moral compass and Oprah no longer the most famous woman in the world. But do we really care? If the markets think its the end then lets party and throw those shorts into the bottom drawer.
guardian says " Class of UK 2009: up to 40,000 graduates will join jobless roll "
guardian says " Bikes, buses and chaos as tube strike forces London to go overground "
The US Commodity Futures Trading Commission has charged SNC Asset Management, SNC Investments, chief executive officer Peter Son, and chief financial officer Jin K. Chung with operating a USD85m fraudulent foreign currency scam involving approximately 500 customers.
The CFTC seeks an emergency restraining order freezing assets and preserving the records of the defendants
The CFTC's complaint charges defendants with misappropriating customer funds to pay off other customers and to pay personal and business expenses.
Fintag says Korea. In the news again for the wrong reasons.
E*Trade Financial is in talks with Citadel Investment Group, the hedge fund that is its largest shareholder, about a deal to shore up the struggling brokerage firm's balance sheet, The Wall Street Journal reported, citing people familiar with the matter.
The two companies have been in negotiations for weeks to find a solution to E*Trade's financial problems, The Journal said, adding that terms of the deal were unknown.
On Tuesday, E*Trade announced that Citadel Chief Executive Kenneth C. Griffin would be joining the firm's finance and risk-oversight committee.
Fintag says Citadel. Hedge Fund Lending. Retail Broking. Insurance. They are truly wanting to be a bank. I like it a lot.
Have a thought for eTrade. It was a dot com darling but has suffered because of its name. It sounds like eBay. [Editor: And?]
Not content, apparently, with flexing its muscle in the mobile billboard market and illustrious pawn shop industry, Citigroup's team of $900-an hour attorneys is now focusing its firepower on a website called Womenco.com, which bills itself as a networking site for "career-minded women," and is owned by Monster.com. Citi, you see, operates a female-centric money management business called Women & Co. and the bank is now concerned that the public will confuse its "women" with their "women." So Citi slapped the company with a lawsuit on Monday, arguing that WomenCo.com violated its trademark and is threatening its status as "one of the largest and most renowned banking and financial institutions in the United States and throughout the world." (Citigroup's words, not ours, obviously.)
State-owned Korea Hydro Nuclear Power meets strong demand for its five-year notes, allowing it to double the size and issue at the tight end of late price guidance.
Korea Hydro & Nuclear Power (KHNP), a unit of state-run Korea Electric Power Corporation (Kepco), priced a $1 billion five-year bond issue early this morning (Hong Kong time) at the tight end of late price guidance.
Fintag says Korea is the new black.
CHINA GREEN AGRICULTURE, INC. COMPLETES NEW 40,000-TON-CAPACITY PRODUCTION FACILITY
China Green Agriculture, Inc. (NYSE Amex: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based liquid compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., today announced that it has completed the installation and single-unit testing of its new production facility for green organic compound fertilizers in China. Located in Shaanxi Province, the facility is expected to begin production in August 2009.
China Green Agriculture's new facilities include 27 vats for mixing ingredients and pharmaceutical grade, electronically calibrated measuring equipment spread over approximately 148,000 square feet. The new facility will increase the Company's output level to 55,000 metric tons to meet with the growing demand for its green fertilizer products. Management expects the new facility to ramp up to full capacity within three years.
Fintag says China is the new green.
JABRE SAYS FUNDS ROSE 30% IN 2009 AFTER SHUNNING 'SAFE' STOCKS
Philippe Jabre, who oversees $2.5 billion at his Jabre Capital Partners SA hedge fund, said he's having his best year in almost three decades of investing after buying banking and energy stocks he'd shunned in 2008.
“The exercise was to go long the market and buy everything that we would have avoided in the past six months,” Jabre, 49, said in a telephone interview from Geneva today. “Stocks were priced for a depression. Now they're priced for a recession.”
Fintag says Criminals are the new prophets.
ISRAEL GIRLFRIEND GETS HOUSE ARREST, PROBATION FOR ASSISTING FLIGHT
Samuel Israel's girlfriend will not join the convicted hedge fund fraudster in prison for aiding his run from the law last summer.
Debra Ryan was sentenced to three years probation, to begin with four months of home confinement, for helping the Bayou Group founder disappear on the day he was due to report the prison to begin a 20-year-sentence. Israel had pleaded guilty to running a $450 million fraud at the Connecticut-based hedge fund.
May might have been the best month in nine years for hedge funds, but it certainly wasn't for Clarium Capital Management.
For the second straight month, the $1.8 billion San Francisco-based hedge fund missed out on the stock market rally. But while it managed a positive return in April, last month the fund actually managed to lose money, while the average hedge fund rose about 5%.
PayPal founder Peter Thiel's hedge fund dropped 1.4% last month, according to a performance update obtained by the blog Valleywag, which Thiel last month called “the Silicon Valley equivalent of Al Qaeda.”
Funds of Pershing Square Capital Management have beaten the major market indexes in the first quarter, The Wall Street Journal reports. The funds witnessed gross returns of around 2.5-4.1% while growth net of all fees was 2.1-3.8%.
Major indexes incurred losses of 2.8-12.4%, including dividend reinvestment for the first three months of 2009. The smallest loss was at the Nasdaq Composite Index while the largest loss was incurred by Dow Jones Industrial Average.
Fintag says I fell asleep there.
all about alpha says " A three-way battle for supremacy in Hedge Fund Industry 2.0 "
37 comments
Munch the Greatest said ...
First, you silly little bunny huggers!
11 Jun 09 - 07:23 gmt
anonymous said ...
Its hot in Singapore
11 Jun 09 - 08:22 gmt
MsR said ...
There is a new element to the periodic table. I didn't think you could keep adding.
11 Jun 09 - 08:59 gmt
Alpha60 said ...
Clarium Capital were massively long UAE in 2007/8. Got absolutely crunched then as well.
11 Jun 09 - 09:11 gmt
Moron said ...
ATTACK KILL DESTROY....get read for the crash of 2009!!!!!!
11 Jun 09 - 09:45 gmt
anonymous said ...
Why do you keep saying "attack kill destroy"? Is that meant to be funny? It's pretty pathetic
11 Jun 09 - 10:18 gmt
Moron said ...
ATTACK KILL DESTROY.......AND ANNOY!!!!!
11 Jun 09 - 10:41 gmt
anonymous said ...
why?
11 Jun 09 - 11:13 gmt
Maria said ...
so your investors have all become ACA's and CFA's, except their focus is their own money? :) nasty...:)
11 Jun 09 - 12:11 gmt
Moron said ...
so Maria....are u in a loquacious mood today???? check up loquacious on Wikipedia....u will learn something new:))))
11 Jun 09 - 12:29 gmt
Moron said ...
there is so much I can teach u:))))
11 Jun 09 - 12:29 gmt
Maria said ...
i told you i cannot post sometimes :).
but it is true that some other times i am simply too lazy to post anything :).
and stop telling me about wiki...that is simply presumptuous. remember, as a Romanian, I know a lot of English words; on SAT's I know the latin origin words, and I know more about etimology than your average native speaker. I do not normally know colloquial phrases and words :).
11 Jun 09 - 13:05 gmt
anonymous said ...
Etymology even. Shame you didn't learn spelling
11 Jun 09 - 13:22 gmt
Maria said ...
shame?? :)
be serious!:)
11 Jun 09 - 13:25 gmt
anonymous said ...
whats going to be the next thing the press decide the country should talk about?
11 Jun 09 - 14:32 gmt
anonymous said ...
I would assume it would be the outrageous money involved in football a la Ronaldo's £80m transfer.
11 Jun 09 - 14:52 gmt
anonymous said ...
There, in my eyes, is nothing wrong with footballers wages - the crouds they pull in are simply unparalleled. good on them!
11 Jun 09 - 15:58 gmt
anonymous said ...
but that is a lot of CASH!
11 Jun 09 - 16:00 gmt
Osiris said ...
wiki is a messed up kiwi (new zealander)
a crash or a freeway pile-up ? vermin extermination ?
equities have been in denial most of this year; it's overdue.
and i do not like agreeing with morons, fools, or tools
11 Jun 09 - 16:42 gmt
Moron said ...
fu*k you!!!:))
11 Jun 09 - 16:47 gmt
Moron said ...
Maria honey...I would like to have u for dinner tonite:)))
11 Jun 09 - 16:58 gmt
Maria said ...
So we're back at 'honey' and they say progress is possible :)...
in any case, i rule out the possibility that you are a cannibal so I should imagine the worst, right? :)
11 Jun 09 - 17:23 gmt
A Psycho said ...
Saw an article in today's city AM about HF support staff being cut...Time to stop posting and go back to settling trades Moron!!!
11 Jun 09 - 17:31 gmt
Moron said ...
yes...imagine the worst...I am a cannibal of a different kind:))))
11 Jun 09 - 17:45 gmt
Maria said ...
symbolic bull-eater :)
11 Jun 09 - 17:52 gmt
Moron said ...
well...... lets just say I like eating soft things:)))
11 Jun 09 - 17:59 gmt
Maria said ...
like a blue steak, you mean :)...
I did not imagine you were a salad guy:)
11 Jun 09 - 18:02 gmt
Moron said ...
well.....if its soft enuff and wet enuff ...i usually don't complain:)))))
11 Jun 09 - 18:03 gmt
Moron said ...
I was referring to the salad of course:))
11 Jun 09 - 18:04 gmt
Maria said ...
i have the feeling you are hungry :)...
remember that 5 is the new 9 and go ahead and have dinner; it's where I'm headed right now as well :)
11 Jun 09 - 18:15 gmt
anonymous said ...
Could you two get a room. Or at least get each other's emails. It's getting boring.
11 Jun 09 - 18:19 gmt
Moron said ...
5 is the new 9 ... since when??? i work past midnight!!!.....do sometimes enjoy dinner on/under the desk though......:))))!!!!
11 Jun 09 - 18:20 gmt
A Psycho said ...
We need more market gossip on this blog...from Mr Taggit and other posters
11 Jun 09 - 19:18 gmt
Moron said ...
here's the market gossip mate.....WE ARE GOING TO CRASH....C....R.....A.....S......H!!!!!!!!!!!!...........READ MY LIPS!
11 Jun 09 - 19:20 gmt
A Psycho said ...
Depends if you think it will be a V, W or L shaped recession. If it's a W then your constant market crash prognosis could come true. But if it is a V shaped recovery...better start hedging Moron.
11 Jun 09 - 20:05 gmt
Moron said ...
if its a V shaped recovery......if its a V shaped recovery!!.....if its a V shaped recovery!!!!!!.....WAKE UP IDI*T.....V shaped recoveries only happen in fairytales!!!
11 Jun 09 - 20:17 gmt
fiona said ...
media's new preoccupation - north korean nuclear attack as an upside to the swine flu.
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