THE FINTAG NEWSLETTER
@ Mon 29 June 2009 : GMT

FINTAG COMMENT

Lessons in finance.

Old fashioned banks, the ones who are conservative and have strong balance sheets don't really look at their p&ls. They prefer to time series their returns on assets. That is income on shareholders reserves. The top of the income statement divided by the bottom of the balance sheet. Something like that.

Bonus driven banks love a fat profit and prefer to see healthy revenues (realised, unrealised and speculative commitments) as the way to judge success. The regulators don't like this and of course us Hedgies too live year by year.

We make our profits and then at the end of the year take them as income. Such short sighted behavior is not healthy but that is because we have to do it. Hedge Fund managers have no real value, but a fund that has a bond like annuity certainly does which is why there are many funds being bought and sold right now by cash starved managers. A fat 12 months termination fee is better than holding onto a withering vine.

INVESTORS COMPETE FOR A PIECE OF THE MADOFF PIE

new york timesFintag says
Til the bitter end. I much more interested in reading this though ...

new york times says " Pillow Fights at the Four Seasons "

However, I still stand by my prediction that the Madman will be out in the next couple of years. He has pleaded, his family have been spared and Obama is as soft as a caramel chocolate on a hot day and will ensure behind the scenes the man doesn't pass away in prison.

SWISS HEDGE FUND SHOP TO BET ON RETURN OF LUXURY TRAVEL

finalternativesFintag says
Following my once in a lifetime EasyJet ride a couple of weeks ago, this story is sweetness to my ego.

HTTP://DEALBOOK.BLOGS.NYTIMES.COM/2009/06/26/STARTING-A-HEDGE-FUND-IN-A-SHELL-SHOCKED-AGE/

dealbookFintag says
The dinosaurs like me need to be tested and it is pleasing to see youngsters (although they are older than me) taking a trip down Hedge Fund alley. If I was Neil Young they are La Roux. Talking of which, I had a fun time at Glasto; although I saw it in HD on TV as befitting a man who doesn't need to sleep in fields.

KING OF POP'S DEBT, PRIVATE EQUITY AND HIS HEDGE FUND SAVIOR

finalternativesFintag says
As usual, we are here to clear up the mess. Anything where Fortress and Citi are involved needs careful handling but Colony who own some of Jackson's old assets may have underestimated how a Judy Garland type legend could have possibly jumped around on stage at his age. I mean Madonna and Mick Jagger workout everyday and it didn't look like this sad man could moonwalk. Sometimes slippers, a cardigan and a pipe are better options.

cityam says " Vodafone plans bid for T-Mobile "

CAXTON BOWS TO PRESSURE ON INDEPENDENT VALUERS

financial newsFintag says
They are all falling like flies. I have been banging on the third party valuation drum for years and now the ear plugs are out, these huge marked to my prices funds are having to do what most European and Asian funds have been doing for years. That is come clean.

Of course timing is perfect. Self pricing during the illiquidity boom saved them many NAV bips and now things are turning round, a positive marketing campaign on how Caxton are so open and transparent seems to follow the tide of Investor demands.

REGULATION AND DISTRUST

marginal revolutionFintag says
Interesting indeed.

FORTIS INVESTOR GROUP TO LAUNCH CLASS ACTION AGAINST DUTCH STATE

global pensionsFintag says
Suing governments is tricky but I feel for these people. Fortis have been a love and hate affair for many a Hedge Fund and we all like to see incompetence punished.