"One of the many questions that remain is whether this is a 'Lehman' moment or not," asks a hedge fund manager.» Read More
Currency issues are expected to take center stage this weekend as finance ministers and bankers from the world’s seven richest nations gather for a meeting in Essen, Germany. Weakness in the Yen will likely spark a debate involving Germany, who wants the G-7 nations to prevent hedge funds from having too much influence over currency markets.
There are preperation meetings over the weekend for the G8 Summit taking place this summer--and members are discussing proposals to make hedge funds more transparent. In the wake of last year’s big-name losses in private equity – Amaranth’s $6 billion loss grabbed the most headlines – the pressure is mounting for some type of hedge fund regulation.
History was made today at the New York Stock Exchange, when Fortress Investment Group made its Wall Street Debut, becoming the first major hedge fund to stage an initial public offering in the U.S. In the first minutes of trading, share price nearly doubled, with investors eager to grab a piece of the pie.
There's some upward bias in stocks this morning but for now the market is without much direction. European markets are higher. Japanese stocks ended higher though Hong Kong slid. The yen is lower against the U.S. dollar as the G7 meets in Essen, Germany today. The yen has widely been expected to be a discussion topic.
The IPO opens the door for individual investors to gain access to hedge fund and private equity deals.
Fortress Investment Group's IPO will open private equity to a whole new class of investors and other funds are likely to follow it in going public. The IPO, the first of its kind, may also trigger something of a gold rush mentality. Fortress has been wildly successful thus far, but it may not meet market expectations
The roughly $1 billion fund, which specializes in metals trading, said investors overwhelmingly approved its request to extend the period they need to give notice to 45 days before the end of the quarter. It used to be 15 days.
Closer checks on hedge funds will be discussed by G7 finance ministers at the weekend but Germany seems to have little if any support for a regulatory clampdown.
James Simons, the founder of Renaissance Technologies, is one of the most interesting people I've interviewed -- ever. It's not just because he is a veritable legend in the world of investing. He told me in late January that his flagship Medallion fund posted returns in the "high 40s or 50s" in percentage terms in 2006. Since 1989, it's posted average annual returns of 35%, topping hedge fund luminaries Paul Tudor Jones and George Soros.
U.K.-based hedge fund SemperMacro is reducing staff and cutting fees as investors have withdrawn cash from the fund in reaction to an almost 16% loss last year, the Wall Street Journal reported.
Remember the collapse of the Russian ruble in 1998--that led to the near-collapse of hedge fund giant Long Term Capital Management? Recent trends in the Japanese yen have investors worried that the currency is destined for a similar fate as befell the ruble.
When Carlyle speaks, people listen. At least, people who are interested in investing or in attempting to replicate the private equity giant's returns. Bill Conway, founding partner and managing director at Carlyle, spoke yesterday afternoon at the Dow Jones Private Equity Analyst Outlook Conference in New York City. And looking at the faces in the audience, people really listened. For those of you who were not fortunate enough to be there, and listen to the excellent discussion led by Wall Street Journal Special Correspondent Henny Sender, here's what Conway had to say about some of the hottest topics in private equity today ...
Just 27% of households with a net worth of $25 million or more, excluding their primary residence, invested in hedge funds in 2006, down from 38% in 2005, the survey by Chicago-based consulting firm Spectrem Group showed.
Does it seem as if the price of oil has been unusually volatile lately? Today, it rose nearly 2% , while earlier in the month it dropped to 19-month lows. Throughout history, speculators have moved the commodities market, but is there more going on now than meets the eye? On today’s “Power Lunch” CNBC’s Sue Herera found out....
Tomorrow is the deadline for hedge funds and brokers to comply with SEC rules defining the use of soft dollars. The new rules disqualify spending on extravagant incentives such as front row seats at the Super Bowl. In addition, payments for meals, travel, rent and other perks will also be considered abuses. Critics say this is just the SEC's backdoor attempt to regulate hedge funds.
When the price of natural gas plummeted last Summer, hedge fund Amaranth took a nose dive. Now some investors are worried the same could happen with hedge funds that invested heavily in oil. "In the short term, market sentiment is overwhelmingly bearish and it's possible for (the) price to go lower than $50 (a barrel),” said Victor Shum, an analyst with Purvin & Gertz.
They were the kings of the power and money world in 2006. We are talking about private equity and the billions of dollars of deals these buyout firms put together. So, what lies ahead for private equity? The Wall Street Journal's Henny Sender found out, during her one-on-one interview with David Rubenstein, Co-Founder of the Carlyle Group.
It may be harder now for the small investor to get into hedge funds, but will that dampen their appeal in 2007? CNBC asked Wall Street Journal Reporter Gregory Zuckerman what he expects from hedge fund investments, in the year ahead. Zuckerman said that overall hedge funds under performed by a couple of percentage points and that many (money managers) were too bearish on the stock market.
Stock markets around the world opened the New Year on a note of optimism. European shares are close to six year highs this morning, and Hong Kong closed just under its all time high. U.S. stock exchanges are closed in honor of the national day of mourning for President Gerald Ford. Services for Ford are held this morning. Our Hampton Pearson will be there, and John Harwood will discuss President Ford's legacy.
It's been a pretty good year for Wall Street--from a bumper crop of buyouts to record-breaking gains. But there were some stumbling blocks--most notably in the commodities markets. The folks at Trader Monthly Magazine have compiled a list of the biggest--most brazen--and jaw dropping trades of the past 12 months. Randall Lane is Editor-in-Chief of Trader Monthly. He was on "Power Lunch" with the list.
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