Delivering Alpha: Live Blog
Wednesday 9/14/11, 9:30 AM/ET: Geithner and the Market
Apparently S&P futures bottomed on Geithners optimistic comments about Europe.
Wednesday 9/14/11, 9:20 AM/ET: Euro and Greece
Will Greece "default" asks Maria Bartiromo? It's hard to say what default means in context of an entire country, says Larry Fink.
Wednesday 9/14/11, 9:13 AM/ET: US vs. India and China
Muni bond pessimist Meredith Whitney says she's actually bullish on the US compared to the Far East. There are "emerging markets" here in the United States that have enormous growth potential.
Wednesday 9/14/11, 9:08 AM/ET: Is America Over?
According to a poll taken by CNBC's Tyler Mathisen, a majority of attendees today expect unemployment to remain in the 8 to 9 percent range at this time next year, making Obama's relection chances unlikely.
Is the US in terminal decline? (Our own Mark Koba has his take on the matter.) A panel featuring Laurence D. Fink, Pierre Lagrange, Jim Leech, and Meredith Whitney is taking up that question now.
Wednesday 9/14/11, 9:05 AM/ET: Wrapping up
Geithner and Cramer exit the stage.
Wednesday 9/14/11, 8:57 AM/ET: "Magical Thinking" on Economics
Most of the alternative economic plans you hear coming out of Washington are "magical thinking"...political strategies, not growth strategies, says Geithner.
He doesn't name any GOP members by name, but it's clear that's where his comments are directed.
Wednesday 9/14/11, 8:57 AM/ET: How to Put Out a Fiscal Fire
To make long-term deficits better, you have to spend money now, says Geithner. If you are a fiscal hawk, you have to do things now to help heal the economy, he tells Cramer.
Wednesday 9/14/11, 8:54 AM/ET: Must Greece Be Saved?
...Cramer wants to know...Geithner doesn't exactly answer....
Wednesday 9/14/11, 8:52 AM/ET: Bottom Line on Growth
Long term growth in the US depends overwhelmingly on one thing...putting the right incentives in place to encourage investing here to meet the "overwhelming" demand that is going to come for goods and services oversees in coming years, says Geithner.
Wednesday 9/14/11, 8:50 AM/ET: 'Lightning Round' with the Treasury Secretary
Is oil being 'cartelled' by hedge funds, asks Cramer...and should the US government investigate?
Not exactly, says Geithner, who says oil is still driven by fundamentals, and has come down enough where it is less likely to hamper growth.
Wednesday 9/14/11, 8:46 AM/ET: Obama's Jobs Plan DOA?
...not at all, says Secretary Geithner, despite GOP possible resistance.
Wednesday 9/14/11, 8:39 AM/ET: No Lehman for Europe?
There is "no chance" that European leaders will allow a Lehman Brothers-type situation to happen to one of their banks, Geithner tells Cramer.
Wednesday 9/14/11, 8:35 AM/ET: Geithner speaks
Geithner: Despite the successes of TARP and bailouts, the "terribly damaging" political dysfunction in the USA and Europe has magnified the world's economic problems.
Wednesday 9/14/11, 8:30 AM/ET:
Waiting for Jim Cramer and Tim Geithner....
Wednesday 9/14/11, 8:27 AM/ET:
CNBC CEO President Mark Hoffman, in his remarks, notes that Secretary Geithner is in the conference green room, "guzzling a protein shake," waiting for his panel with CNBC's Jim Cramer.
Wednesday 9/14/11, 8:24 AM/ET: Opening remarks from Institutional Investor Chairman Diane Alfano...
Wednesday 9/14/11, 8:14 AM/ET: Game Changer?
Pershing Square Capital founder and CEO Bill Ackman will announce his next big investment move at approximately 1:30 pm today. He's made some bold moves in the past, so this will do doubt get some attention.
Wednesday 9/14/11, 7:40 AM/ET: About to begin
Conference attendees are filing in to the CNCB/Institutional Investor "Delivering Alpha" conference...
First up will be Treasury Secretary Tim Geithner at 8:30.
Tuesday 9/13/11, 10:40 AM/ET: Justify Your Paycheck
Do hedge fund managers really deliver returns that justify their charging 2 percent management fees and 20 percent performance fees to their investors? One panel tomorrow—featuring Steven Algert of the J. Paul Getty Trust, Clifford Asness of AQR Capital Management, Jonathon Jacobson of Highfields Capital Management, and Ted Seides of Protégé Partners—will address exactly that.
Jon Jacobson gave CNBC's Maneet Ahuja some of his thoughts in advance:
"Delivering fees, in my mind, comes down to delivering a net return to investors that A) has an alpha component - a return over and above that of the market, and B) is accomplished by taking less risk than that of the market.
Although there are varied approaches to achieving this, the number of managers that have a strong record of doing so over a long period of time is relatively small. As fundamental value investors, we start with the premise that security prices almost always move faster than and, in many cases overshoot, fundamental changes in the underlying businesses. This is driven by the fact that investors are alternately driven by greed on the one hand and fear on the other. Our deep fundamental research focus allows us to build a relatively concentrated portfolio of securities which we believe provides the opportunity to achieve equity-like returns with a high margin of safety. We are agnostic about geography, industry, and security type—our singular focus is crafting a portfolio that will yield the best risk-adjusted returns over the long-term. The long-term orientation and stable nature of our capital along with the investment flexibility allowed us are big advantages. This formula, together with an investment team that has been together for some time with deep knowledge of global sectors, has worked well for us."
Monday 9/12/11, 4:04 PM/ET: A Preview on the Deficit Panel
One of the more anticipated panel discussions will be on how to solve the US deficit problem. Former NJ Senator, Governor, and CEO of Goldman Sachs Jon Corzine—one of the panel participants—gave a sneak preview of his comments to CNBC's Maneet Ahuja:
“We need a two-pronged approach that provides fiscal stimulus today, coupled with a combination of entitlement reform, spending controls, and tax reform in the long term. Unless we make immediate investments in education, infrastructure, and job creation, the economy is likely to experience a double-dip recession, which will translate to even larger deficits over the next decade. At the same time, we need to take steps to control entitlement spending and protect the safety net for future generations, while also reforming the tax code and select discretionary programs. The problem is fixable, if politics doesn’t get in the way.”
Monday 9/12/11, 2:49 PM/ET: The Next Big Thing?
Here's one of many things to look forward to from the CNBC/Institutional Investor "Delivering Alpha" conference this Wednesday: Hedge fund manager William Ackman plans to announce and "actionable investment" idea that "will have global implications and be of great interest to retail and sophisticated investors alike," Ackman promises.
The real deal or just hype? We'll find out Wednesday.