Wednesday 9/14/11, 6:05 PM/ET: It's a Wrap...
The Delivering Alpha conference is officially over. Thanks for reading. For an overview of everything that happened today, don't miss our coverage.
Wednesday 9/14/11, 5:55 PM/ET: Lastly, Not a Company, an Idea...
Anne B. Popkin, president of Symphony Asset Management: Levered credit is cheap—loans and high-yield bonds, says Popkin. Volatility in this space will be high, so good risk management is crucial. "Don't bet the ranch and [don't] put all your money to work right away," she says.
"Risk-management is absolutely crucial here, because volatility here is very high," she said.
Wednesday 9/14/11, 5:45 PM/ET: One company...
Daniel Loeb, CEO of Third Point: You generally want to buy great companies with great management, Loeb says, but he found an opportunity to buy what he calls a great company with "horrible" management. Who?
The company has been led by "a series of people who didn't really know what they were doing," Loeb said. He calls the company's board of directors "clowns," and said no one in Silicon Valley wants to work with them. His company bought a 5 percent stake in Yahoo!, and he believes it will thrive with new management.
What they’ve done wrong? "It hasn’t changed since 2004. The same crappy interface, the same stupid logo. You wonder, what have these guys been doing? The problem is they’ve been led by people that really didn’t know what they’re doing," he said.
For whatever it's worth, reports are coming in that the company might be for sale.
Wednesday 9/14/11, 5:45 PM/ET: Mortgage Opportunities...J. Tomilson Hill, CEO, Blackstone Marketable Alternative Asset Management: Buy pools of non-performing mortgages. "You have the ability to buy mortgage servicing rights at prices we’ve not seen before," he said.
Wednesday 9/14/11, 5:34 PM/ET: Falcone Rising...
Philip Falcone, founder of Harbinger Capital Investments: Hit top pick? Spectrum Brands. Falcone goes through a lengthy list of admirable aspects of the company's balance sheet. It's not a "high octane" stock, but his company owns 28 million shares.
Wednesday 9/14/11, 5:17 PM/ET: Next Up...
Leon Cooperman, CEO Omega Advisors: 2008 is not going to reoccur in 2011, said Cooperman. A recession is unlikely (which isn't to say people will feel especially good), Obama is likely to soften his 'anti-business' stance, and the price of oil is likely to be stable, he said.
Avoid government bonds, and stocks are the "best house in the asset management neighborhood," he said. Buy ANY good value stocks, he said.
Wednesday 9/14/11, 5:11 PM/ET: First Up...
Kyle Bass, founder of Hayman Advisors: The worldwide sovereign debt crisis is unlike anything else in history. Who's in the worst situation? Japan. The countries debt numbers are awful, and their government seems to be fatalistic about their future, Bass said. In that oncoming collapse is a huge opportunity.
"Japan spends almost half of their revenue on debt service. So, a minute move can put them literally into check-mate. The opportunity is that the optionality. We see a structural anomaly creating the cheapest option in the world," he said.
Buy price put options on government bonds, Bass said. The best opportunity in the world.
Wednesday 9/14/11, 5:09 PM/ET: Defend Your (Life) Best Idea
Last panel of the day. Here hedge fund manager have a few minutes to present—and defend—their best ideas...
Wednesday 9/14/11, 4:39 PM/ET: A Coming Credit Crisis?
From a panel featuring Peter Briger, Co-Chairman of Fortress Investment Group; Marc Lasry, head of Avenue Capital; Bruce Richards, CEO of Marathon Asset Management; and Boaz Weinstein founder of Saba Capital Management, moderated by CNBC's David Faber.
David Faber: Can a Greek default be contained?
Marc Lasry: “If Greece defaults, equity markets will be down 10-15 percent, maybe more...It is an absolute nightmare if that ends up happening.”
Bruce Richards: “It has to be contained. I believe all will be behind containment. Banks are way over-levered, with less than 4 percent tier-1 capital. They need to sell alot of assets. A whole lot of assets. What is really required is a TARP for Europe. To keep a run on deposits from happening, garauntee all deposits."