The popular hedge fund strategy of profiting off corporate slim-downs isn't as lucrative as it used to be.» Read More
On CNBC TV today, I have been talking about the top 5 things investors should know about the highly anticipated Blackstone IPO. (And, in case you're wondering, 5 was an arbitrary number.) Clearly, it was a very serious and informative piece of journalism. Now, let's have some fun. Here are the top 5 things investors REALLY WANT to know about Blackstone's IPO. I don't have the answers to any of them unfortunately--but it's more fun to fantasize, isn't it?
Activist investor Nelson Peltz has developed a taste for Kraft Foods, buying a 3% stake in the company, according to CNBC's David Faber, who quoted people familiar with Peltz's strategy. Kraft, which makes Oreo cookies and Oscar Mayer meats, saw its shares surge nearly 5% on the report.
Man Group, the world's biggest listed hedge fund firm, has set the indicative price range for the flotation of its U.S. brokerage arm, MF Global, valuing the unit between $4.6 billion and $5 billion.
130/30, 120/20, 140/40. No, they're not prescriptions from your eye doctor. They are the latest trend in the investing world, that allows traditional, long-term investors to use shorting to boost returns. Very simply, the funds leverage up to 130% (or 120% or 140%, depending on the flavor of the strategy) long exposure usually to an index or sometimes a basket of stock picks. They then short 30% (or 20 of 40%), betting against the stocks they think are overvalued. And voila! 100% net exposure.
Harvey Pitt, former SEC chairman and founder and chief executive officer of Kalorama Partners, told CNBC’s “Power Lunch” that a new tax aimed at private equity firms like Blackstone Group will hurt pension funds and the investing public.
Steve Schwarzman's wealth probably makes a lot of people jealous. He is, after all, fabulously rich. And that would be FABULOUSLY, in all caps. If Blackstone goes public, Schwarzman will become even more fabulously rich, to the tune of $677 million additional dollars, on top of retaining a 23% stake in the firm. And if that doesn't make you jealous, there's that Wall Street Journal profile of Schwarzman this week, (subscription required) which details, among other things, his upper class sensitivity to a butler's squeaky black shoes, and his and his wife's fancy for $400 worth of stone crabs on weekends.
A hedge fund has called for the sale of Sunrise Senior Living, citing problems with management and accounting at the large U.S. owner of assisted living and nursing homes.
Every local TV news channel has some segment that helps some consumer in distress--someone wronged by a renegade dry cleaner who made a hole in a beloved cashmere sweater, or a pet owner who bought a mutt instead of a pedigree pure bred. Invariably, the segment is called something along the lines of "the Investigators," or "XYZ news channel On Your Side." This blog entry is my version of that regular feature on your local news.
U.S. hedge fund Third Point said on Thursday it plans an initial public offering (IPO) in London to raise about 500 million euros ($665.3 million), bringing one of the most aggressive activist investors to Europe.
Here’s the burning question of the day from the Hamptons, the tony beach towns on Long Island east of Wall Street: Who’s the hedge hog? Hedge fund king James Chanos, of Kynikos Associates, and Marc Spilker, a managing director at Goldman Sachs, are squabbling about a common path to the beach, according to CNBC's Margaret Brennan.
Twelve minutes seems like an eternity in television land, but when you report an in-depth piece, there is inevitably juicy tidbits that end up never seeing the light of day. That's what happened with my look at the psychology behind a hedge fund con. It's the story of a college undergrad, Hakan Yalincak, who engaged in credit card fraud, hedge fund fraud and check kiting, in a classic Wall Street swindle. And here's the kicker: the targets of the scam were hedge fund traders and managers who worked at some of the most successful...
Eddie Lampert, the billionaire hedge fund manger and controlling shareholder of Sears Holdings, is embarking on an effort to raise billions in new money for his widely successful hedge fund, ESL, people familiar with the situation told CNBC's David Faber.
Think of investing in Asia and markets like China and India immediately spring to mind. China seems to be preoccupying everyone. And why would it not with the Shanghai Composite Index more than doubling over the last 12 months, thanks largely to nearly 90 million retail investors. But things are not looking so rosy at the moment. Chinese shares have been on a volatile ride of late. After hitting another record high on May 29, the index has lost almost 7% as of June 8. For investors, who are less than thrilled to ride the Chinese stock market rollercoaster, the good news is, that you have options – very good ones at that.
Hedge fund managers are accusing Bear Stearns of trying to manipulate the market in securities based on subprime mortgages, the Wall Street Journal reported in its online edition.
Imagine you're a CEO or board member of a publicly traded company and you get this letter, signed by two very powerful, very successful hedge funds: Dearest Sir, We believe you should make a huge acquisition because the company as it stands won't deliver the returns we want (I.E. not BIG enough!). By the way, we own a huge stake in your company, and we WILL make it bigger. (Read between the lines: Do what we say, or else.) XOXO, SAC and Jana.
In an exclusive interview with CNBC, Joe Moglia, CEO of TD Ameritrade, said his company will consider merging with a competitor but won't rush into any agreement.“You should assume that we’ve been talking to people in the industry all along and we would continue to do that,” Moglia said.
Two hedge funds took an 8.4% stake in TD Ameritrade Holding and sent the online brokerage a letter urging it to merge with either E*Trade Financial or Charles Schwab. TD Ameritrade expressed willingness to consider such an offer.
Leaders of the G8 powers will call this week for greater vigilance on hedge funds in the hope that the industry will take it upon itself to prevent accidents like the collapse of LTCM in the late 1990s.
Today, I focused on emerging private equity funds' outperformance versus larger, more established funds (see link to my CNBC TV report). But let's not forget about hedge funds. The same outperformance can also be found there.First a multiple-choice question: whom do you want running your hedge fund?A. A guy who's been running money for decades and has his wealth spread out across a big portfolio that may be worth more than yours may.B. A guy who's sunk almost all his net worth into the fund, so he's trading his own money, and stays up at night thinking about how he's got to make the fund work or he'll lose his house.
Global hedge funds have invested as much as $50 billion into China's soaring stock markets, a development that regulators should monitor, according to a report by a mainland think-tank cited in Thursday's South China Morning Post.
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The popular hedge fund strategy of profiting off corporate slim-downs isn't as lucrative as it used to be.