July 2007

  • Hedge Funds, rumors

    Caxton Going Down?

    We’re hearing rumors that Caxton Associates is blowing up. Caxton is one of the largest hedge funds in the world with around $16 billion under multi-strategy management so this would be huge and, as they say, unlikely. Some are saying it’s because of the move SEPR has made of over the past few weeks (Caxton’s […]

    / Jul 31, 2007 at 8:00 PM
  • Write-Offs

    Write-Offs: 07.31.07

    $$$ Of Taxes and ‘Deals That Don’t Get Done’ [DealBook] $$$ The Complicated, Modern Renaissance Man [Banker’s Ball] $$$ How to Say All Their Money is Gone [LoSC]

    / Jul 31, 2007 at 5:19 PM
  • Banks, Hedge Funds, Private Equity

    Jeremy Grantham: RUN FOR YOUR LIVES

    Are you presently working for a hedge fund or major bank? May Jeremey Grantham, chairman of Grantham, Mayo, Van Otterloo & Co. (via us) suggest that you get the hell out of there, because most of you are going to die anyway? That’s right, Dealbreakettes, according to Grantham, credit-market declines are going to force “as […]

    / Jul 31, 2007 at 4:26 PM
  • France

    Malchance Pour Oddo & Cie

    The troublesome US asset-backed insecurities market is mauvaises nouvelles for the French too, apparently. Oddo & Cie, a Paris-based money manager is closing three hedge funds worth 1bn Euros ($1.37bn) after losses on collateralized debt obligations, Bloomberg reports. The funds, which held 15% of investments in US CDOs, will be close in “the shortest possible […]

    / Jul 31, 2007 at 4:01 PM
  • Consultants

    Chelsea’s Consulting Coup And Other Bold Character Building Choices

    Did anyone catch today’s New York Times lovefest fluff-piece about Chelsea Clinton? There’s nothing she can’t do, from working in finance to reading “Goodnight Moon” at a college level to dating Jews. And as any truly well-fluffed piece will tell you, merit carries the day throughout Ms. Clinton’s orgy of success. For instance, how did […]

    / Jul 31, 2007 at 2:42 PM
  • Dow, Newspapers, Rupert Murdoch, Wall Street Journal

    NewsCorp-Dow Jones Deal Imminent

    It’s finally pretty much almost over. Rupert Murdoch has secured enough Bancroft family shareholder votes to move forward with his $60-a-share, $5bn bid, one future News Corp holding reports. One day after a Murdoch spokesperson said the deal was “highly unlikely,” the Denver branch of the Bancroft family, previously holding out for a higher offer, […]

    / Jul 31, 2007 at 2:04 PM
  • Hedge Funds, they don't teach Bond Vol 101 at Harvard Management Company

    Blind Item: We Have To Be Able To Laugh About This Stuff

    Which New York short-seller, Simpsons fan and Yale graduate had this to say about the recent adversity faced by Sowood Capital? “Let Harvard have its academic and athletic excellence…Yale will always be known for the finest in gentlemanly club life…” Earlier: Sowood Is So Sowwy Sowood Makes Citadel Look Good

    / Jul 31, 2007 at 1:10 PM
  • ABN Amro, Barclays

    ABN Amro Playing Horrible Game of Hard-To-Get With Barclays

    ABN Amro’s board decided over the weekend to withdraw its formal recommendation for a bid by Barclays, but it was only half-serious, and they were winking at the time (though that may have just been an involuntary spasm resulting from getting grapefruit in their eyes, which stings quite badly). ABN’s chief executive Rijkman Groenink said […]

    / Jul 31, 2007 at 12:13 PM
  • Great Moments in Financial History

    Great Moments in Financial History: All Quiet on the Trading Front

    (If you missed our first installment of “Great Moments in Financial History,” detailing Maria Bartiromo’s appearance on Celebrity Jeopardy, you definitely want to check this out) Traders, take a second from shifting vol and imagine this announcement: “Traders, your work here is done. The market has done all it can do for you this year, […]

    / Jul 31, 2007 at 11:43 AM
  • Health

    DealBreaker PSA: Second Hand Printing

    Ever wonder why, after a few minutes on the treadmill at the end of a grueling week, you’re breathing harder than (eighteen pack a day smoker) James Simons trying to explain 5/44 to investors? Forget the crippling fatigue, lousy diet, self-loathing and emotional stress, it’s the PRINTERS. Australian scientists from the Queensland University of Technology […]

    / Jul 31, 2007 at 10:59 AM
  • Dow Jones, just do it, MySpace, Newspapers, Rupert Murdoch, Wall Street Journal

    News Corp Will Be Victorious Unless MySpace Founder Has Something To Say About It?

    This is a list of people who we respectfully submit are liars: CNBC’s David Faber, Thestreet.com’s Nat Worden, and Reuters. We believe these entities to be capital ‘L’ small ‘i’ small ‘a’ small ‘r’s because among them they share the distinction of having reported or re-reported this morning that there will be an official announcement […]

    / Jul 31, 2007 at 10:57 AM
  • Blackstone, China

    Blackstone Shares Buyout Secrets With Chinese Government

    Steve Schwarzman is selling state secrets to the Chinese. Is Schwarzman trying to pull a Jack Bauer’s father in last season of 24 (Schwarzman is the only PE fund guru as “tall” as Keifer Sutherland, after all)? For the low, low price of $540 million dollars, or a nice $23 million a day, the Chinese […]

    / Jul 31, 2007 at 10:15 AM
  • Citadel, Hedge Funds, Regretfully Yours

    Sowood Is So Sowwy

    The letter a hedge fund manager sends to his/her investors in the event of bad news like, say, a meltdown, etc., is an exercise in trying to jam a huge ego and an “I’m sorry, but I’m not really sorry, but I’m saying I’m sorry” onto one page. We’ve been calling him out a lot […]

    / Jul 31, 2007 at 9:49 AM
  • Banks, Private Equity, TXU

    TXU Lenders Do The Math

    Funding a $37 billion buyout isn’t what it used to be, especially since debt on recent buyouts is losing up to 10% in value, sticking lenders with hefty losses. The lenders led by Citi and including Lehman, JPMorgan, Goldman and Morgan Stanley are considering paying a $1 billion break-up fee so that everyone can quietly […]

    / Jul 31, 2007 at 9:30 AM
  • Opening Bell

    Opening Bell: 7.31.07

    ADM fiscal 4Q profit increases (Thomson Financial) Food purveyor to the world, ADM, saw its profits rise in its most recent quarter, although that was mainly due to the disposal of certain assets. Surprisingly, the company’s operating profits actually dipped, in part due to the rise in corn prices. Seems strange — wasn’t ADM supposed […]

    / Jul 31, 2007 at 8:03 AM
  • Write-Offs

    Write-Offs: 07.30.07

    $$$ Deals: Holding Their Own In our M&A Roundup for the week ending July 29, reports of the death of the deal were exaggerated, as activity rose slightly from the prior week. [CFO.com] $$$ “The Track is what separates man from beast. It’s what separates Banker from every other ungainfully employed idiot that exists out […]

    / Jul 30, 2007 at 5:20 PM
  • Private Equity

    Some of These People Like Private Equity And Some of Them Don’t

    We’re almost as sick of the private equity tax debate as we are with Deal or No Deal: Dow Jones/News Corp. Edition (and, come to think of it, the same horrible game show featuring ABN Amro and Barclays, which has only kept our interest this long due to the Holocaust angle, because, as intuited by […]

    / Jul 30, 2007 at 5:18 PM
  • Closing Bell

    Closing Bell: 07.30.07

    Sponsored by Financial Times Coming off Wall Street’s worst week in five years, stocks traded up today in spite of lingering credit concerns. Purchases in the financial sector increased confidence and drove up prices across the board. All ten S&P sectors traded higher today. The Dow closed up 92.84 or .7% to 13,358.31; the Nasdaq […]

    / Jul 30, 2007 at 4:34 PM
  • Citadel, Hedge Funds

    Sowood Makes Citadel Look Good

    Sowood Capital, blistered by big losses in its bond portfolio resulting from the current state of affairs in subprime mortgages and karma for Harvard being one of its biggest investors, voluntarily left the credit business today, after being asked to leave. The erstwhile multi-strategy fund, founded by Jeffrey Larson, sold its credit positions to Citadel, […]

    / Jul 30, 2007 at 4:11 PM
  • insider-trading

    Someone Is Actually Going to Jail for Insider Trading

    Joseph Nacchio, former almost brother of Karate Kid idol and Qwest CEO, was sentenced to 6 years in prison for making $52 million by dumping Qwest stock when he knew his company was on a special tanking Qwest. Nacchio was convicted in April. The icing on the sentencing cake, from the New York Times: Judge […]

    / Jul 30, 2007 at 2:42 PM
  • Bancroft, Dow, Newspapers, Rupert Murdoch, Wall Street Journal

    News Corp-Dow Jones Deal “Highly Unlikely”

    Rupert Murdoch’s bid for Dow Jones, once a sure thing, then “too close to call,” is now “highly unlikely” unless the Bancroft family increases its support of the deal by 5 p.m. today, the Wall Street Journal reports. At the moment, 28% of Dow Jones’ voting power supports the deal, although it is unclear what […]

    / Jul 30, 2007 at 2:33 PM
  • Amaranth, Brian Hunter, Hedge Funds

    Brian Hunter Will Not Have His Integrity Impugned

    Anyone who’s ever interfaced with a jerk knows that the best of breed have an uncanny ability to turn situations around so that, all of a sudden, they’re accusing *you* of being the prick. Brian Hunter is no exception. In the middle of an interview earlier this year with Washington regulators, everyone’s favorite salmon lover […]

    / Jul 30, 2007 at 2:26 PM
  • Wall Street

    The Freeze Is On

    After adding 10,000 employees in June, the U.S. Securities Industry is now 848,300 worker bees strong, higher than the March 2001 level of 840,900. This is a new all-time record, and June was the biggest single month gain in number of employees since June 2000. Despite the record number of big winners trolling the Street, […]

    / Jul 30, 2007 at 1:53 PM
  • Subprime Mortgages

    Krauts Find out What It’s like to be on the Other Side of the Killing*

    KB Deutsche Industriebank became the first German victim of the subprime situation today, saying that losses in the US sub-p mortgage market would translate to “significantly lower” earnings than the previously predicted €280m ($383m) for its 2007-2008 fiscal year. The profit warning caused shares of IKB to plummet 16.7% to €17.89, its lowest level since […]

    / Jul 30, 2007 at 1:16 PM
  • Bear Stearns, Hedge Funds, James Cayne

    Jim Cayne Can’t Catch A Break: Bear Stearns Continues Losing Streak

    Last, week, when Bear Stearns seized the assets of its own hedge funds, some people scoffed. It seemed a little unjust that while investors had been told there was a grand total of zero dollars (or zero-ish dollars, depending on whether or not they put their money in the gigantically failing fund or the essentially […]

    / Jul 30, 2007 at 12:00 PM
  • Companies

    Xerox Develops Green “High-Yield” Paper

    Xerox has developed a new strain of low-cost environmentally friendly paper that compares in quality to standard 20-pound bond paper many businesses use. Xerox’s “High-Yield Business Paper” is higher-yielding than most subprime issues and made in a much less intensive way than most paper on the market. The new paper avoids some of the problems […]

    / Jul 30, 2007 at 11:44 AM
  • Hedge Funds

    When Hedge Fund Losses Hit Home

    When Amaranth was blown to smithereens, we all had a good laugh about it. A fund lost $6 billion in one week because a brash young ichthyophile bet the wrong way on everything? That’s hilarious. Plus: the genius trader and his boss really weren’t affected, monetarily, as evidenced by the latter’s chutzpah in threatening his […]

    / Jul 30, 2007 at 10:55 AM
  • Layoffs

    Monster Now With 800 More Users

    Monster Worldwide posted lower than expected earnings and happily announced that it was cutting 15% of its full-time staff. Monster management put a happy spin on the layoffs, by first labeling them a “restructuring”: We are raising guidance for this quarter, knowing that our user base will grow by at least 800 people next quarter. […]

    / Jul 30, 2007 at 10:33 AM

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