Will "Flash Boys" star IEX succeed in becoming a stock exchange with a speed bump? Tim Quast weighs in.» Read More
Goldman Sachs Group, said it raised more than $6.5 billion for a fund that will invest in toll roads, airports and ports as well as regulated gas, water and electrical utilities.
Roughly $110 billion flowed to the more than 9,200 hedge funds in 2006, according Chicago-based firm Hedge Fund Research. Senior managing director of Channel Capital Group George Lucaci was on “Closing Bell,” explaining which funds made the most money this year. He also highlighted what to look for in 2007.
The flow of corporate news is likely to start waning today ahead of what could be a quiet session tomorrow. Making headlines today will be the Philadelphia Fed when its survey is released at noon. Our Steve Liesman will cover all the news from Philly on Power Lunch. Other data this morning includes leading economic indicators and final Q3 GDP but a big focus in our coverage will be the third and final CNBC holiday central survey. Liesman will dissect the findings and tell us what the surprising latest survey says about the consumer, economy and retailers this holiday season.
U.S. Treasury Secretary Henry Paulson signaled that he is open to Germany's idea of having the Group of Eight discuss ways of making hedge funds more transparent, a Finance Ministry official said Thursday.
There's more to the world of private equity than the giants -- the Bains, Carlyles, KKRs of the world. True, more than 50% of all funds raised in 2006 were raised by the top 20 firms. But, there is a vibrant layer of firms doing fundraising below that top 20.
Hedge funds and mutual funds have poured big money into emerging markets. Which funds have the biggest exposure, if the “Thai Financial Flu” spreads? CNBC’s Melissa Lee investigated – and revealed her findings on today’s “Power Lunch.” Certainly with emerging markets on such a run recently, this is an area where many investors have seen increasing exposure.
In the world of alternative investments, they use alternative methods of compensation. Base and bonus don't accurately represent what these folks are making. Hedge fund pay, the focus of my Power & Money report today, is the perfect example. The average pay for a CEO was $4.5 million, according to Infovest. The average pay for a portfolio manager: $2.5 million. But what these numbers don't include is the fattest part of the paycheck...
Average investors have never been able to invest the way the “Big Wigs” do on Wall Street. This morning's Wall Street Journal Report says, that now it's a lot easier for the little guy to gain access to private money investing, such as private equity and hedge funds. On today’s “Morning Call” CNBC’s Becky Quick took a closer look at the risks with Wall Street Journal Senior Special Writer, Henny Sender.
Greg Zuckerman of Dow Jones’ Hedge Fund Trades newsletter was on “Morning Call” today as part of our regular series “Power & Money.” He said the industry took a hit from a poor-performing biotech firm. But there’s something interesting going on in the distressed debt investing market.
In an exclusive interview with CNBC, SEC Chairman Christopher Cox said the agency is in its best shape ever to oversee a variety of regulatory issues simultaneously, whether it's options backdating or keeping a watchful eye on the derivatives market.
Yesterday, the U.S. Securities and Exchange Commission raised the net worth requirement for investing in hedge funds to $2.5 million from $1 million. If you saw SEC Chairman Christopher Cox on cnbc.com this morning, you’d know that the rule was made to keep unsophisticated investors out of an incredibly complex industry. Now, the focus is on protecting retail investors....
Our quote of the day comes from the late stage and film actress Tallulah Bankhead: "If I had my life to live again, I'd make the same mistakes, only sooner." There's no mistaking OPEC's latest move--as the oil organization seems to have agreed to cut production by some 500,000 barrels a day in February.
News out just moments ago that the Securities and Exchange Commission is raising the minimum requirements for so-called "accredited investors." It gets bumped up to $2.5m from $1m, where it had stood unchanged since 1982.
Regulators voted on a proposal that would raise the hurdle investors must meet in order to enter the fast-growing world of hedge funds.
We have more opinions on the regulation of hedge funds. Tomorrow (Wednesday) the S.E.C. meets to consider new rules for hedge funds--which S.E.C. Chairman Christopher Cox calls "risky investments that are not for mom and pop." This year's Amaranth meltdown would seem to support that view (Amaranth lost $6.5 billion in one month in 2006.
In an earlier post we talked about the issue of hedge fund returns vs. index funds. That's one battle for the massive hedge fund industry--but there's another that's maybe more important: The issue of transparency. Hedge funds might not be publicly traded, but the U.S. Securities and Exchange Commission requires that money managers overseeing more than $100 million disclose their holdings...
You should expect to hear more calls for greater regulation of hedge funds, and watch out for another wave of big buyouts by private equity groups in the coming year.
Goldman Sach's $10 billion dollar Global Alpha Fund--a 40% gainer last year--is down almost 11% this year while the stock market is on a bull run. This year on average--the so-called smart money is underperforming the broad averages. This begs the question--can hedge funds deliver above market returns or is the market simply too efficient?
According to a Mercer Investment Consulting study - 1/3 of pension funds invest in hedge funds. But are they safe investments? On today’s Street Signs Erin Burnett put that question to Damon Silvers, Associate General Counsel with the AFL-CIO and Cynthia Steer, Managing Director and Chief Research Strategist with CRA Rogers Casey.
Hedge funds are heading into a rough few weeks. Many funds are looking at some pretty average returns this year--and if that's not bad enough--the industry faces U.S. Congressional hearings starting tomorrow on regulations and insider trading. William Galvin is Secretary of the Commonwealth of Massachusetts...