Alpha‘s annual list of the Hedge Fund 100, the biggest single-manager hedge funds by AUM, is out today, and though it’s not as fun without the personal touch, it’s still a good time. The Top Ten was mostly a reshuffling of 2008′s names, with Man Group, Brevan Howard and Soros cracking the list, and Barclays Global Investors sadly getting knocked out, down to slot 12.
Nice work by Alpha but our criteria are a bit different and obviously yours are too. So, we give you Dealbreaker’s Top 10 Hedge Funds for 2009.
Archive for April 2009
You have by now, no doubt, seen the Daily Beast’s take on Madoff: The Movie. Frankly, we think their casing is all wrong. Madoff seems much more Seinfeld’s Jason Alexander to us (though we love Sam Waterston as Noel). But we don’t want to impose our jaded views on you when it comes to Bernie entertainment. We are certain you can cast this thing better than The Beast or Dealbreaker. Have at it!
Madoff The Movie [The Daily Beast]
If we were throwing $80,000 around here and there to buy up DVD distribution rights for award winning cinema like Chooch, we’d probably not be in a hurry to make a lot of detailed disclosures about the people, places and profits on the deal either. Quadrangle seems to be of the same mind.
New York City’s pension funds are probing whether private equity fund Quadrangle “intentionally misled” it about placement agents used to win pension fund business, a spokesman for the city’s comptroller said Tuesday.
Well of course they (allegedly) did. Have you seen the trailers?
NY City probes if Quadrangle misled pension funds [Reuters]
Earlier: When An (Alleged) Kickback Is Obviously An (Alleged) Kickback
Even his old mentors, who previously thought of the li’l fella like a son. Gary Weiss has a profile of the Treasury Secretary over at Portfolio and while there are several excellent descriptions of the varying expressions on Geithner’s face ranging from shady (“the eyes of a shoplifter”) to shitty, as in I just shit my pants out of fear (“Think Bambi looking into the headlights of an 18-wheeler”), and quotes from a few people who think Geithner is not the man for the job, nobody from the old neighborhood will go to bat for the guy!
[When I profiled him last year], some of the nation’s most prominent figures in government and finance–former Federal Reserve chairmen Paul Volcker and Alan Greenspan, as well as John Thain, then CEO of Merrill Lynch, and former New York Fed chief Gerald Corrigan–were only too happy to share fond anecdotes about this youthful public official on the rise.
When I approached them again for this article, to get a word in defense of their beleaguered friend, the reaction was far different. Greenspan was “working against a series of his own deadlines and sends his regrets,” a spokesperson told me. Volcker was “not granting interviews.” Corrigan also declined to comment on Geithner. “It’s just a little bit early in his tenure,” said a spokesperson.
About $4.4 billion if you are Wells Fargo.
The net unrealized loss on securities available for sale declined to $4.7 billion at March 31, 2009, from $9.9 billion at December 31, 2008. Approximately $850 million of the improvement was due to declining interest rates and narrower credit spreads. The remainder was due to the early adoption of FAS FSP 157-4, which clarified the use of trading prices in determining fair value for distressed securities in illiquid markets, thus moderating the need to use excessively distressed prices in valuing these securities in illiquid markets as we had done in prior periods.
Wells Fargo [Trading Markets]
Financial Analysis of Local Governments (New!)
This seminar provides an in-depth workshop on the financial statements seen in U.S. public finance. With real-world case studies, delegates will learn where to find information in an audit, what the line items mean, and key ratios and trend analysis used by Moody’s analysts. It focuses on local governments and K-12 school districts.
Fin Analy Local Gov-NA09.pdf [Moody's]
We would say we are surprised. But we aren’t.
Alistair Darling has announced a new top tax rate of 50% for those earning more than £150,000 from next April.
The chancellor unveiled the measure after delivering a stark Budget report on the state of the UK economy.
He said debt would hit a record £175bn this year and the economy shrink 3.5% – its worst performance since 1945.
This isn’t just some punish the bankers spanking tax, mind you, but a broad sweep. Imagine working for the government until the summer solstice. (You people in California and New York can skip this assignment). Then imagine gasoline is $9.00 per gallon and over 80% of that is tax.
How much of this do we think the UK can take?
Darling Unveils 50% Top Tax Rate [BBC News]
Wells Fargo to the rescue. First quarter EPS of 56 cents, smacking around the consensus of 41 and otherwise looking highly suspicious. But perhaps we are being unkind.
“The best way to generate capital is to earn it,” said President and CEO John Stumpf. “This has long been the hallmark of our company and we’re now seeing the initial signs of the earnings and capital-generating power of the combined Wells Fargo-Wachovia in our first quarter together, serving one of every three U.S. households. We’re also seeing the benefits of our actions to reduce the risk in the Wachovia portfolio at the close of the merger through write-downs and credit reserve builds. Our talented team has built solid momentum for 2009. We are open for business and we’re gaining wallet share and market share, as we’ve always done in economically challenging times, because we make fewer mistakes than our competitors in the so-called ‘good times’ and have fewer problems to fix.”
Wells Fargo is up not quite one and a half percent.
Wells Fargo Tops Q1 Estimates [Smartrend]
Apparently a “whole bunch of MDs” in UBS’s prime brokerage were among those affected by the massive population structuring occurring at our favorite Swiss bank in town, having been given the heave ho yesterday. (Including in the cuts was former head of prime brokerage sales and, until recently, current head of ETD sales for the US, Howard Eisen.) The rest of the group is said to be “just waiting nervously” for their turn.
Morgan Stanley Posts Loss (MS)
Morgan Stanley reported a net loss applicable to Morgan Stanley for the first quarter ended March 31, 2009 of $177 million, or $0.57 per diluted share (reflective of preferred dividends),(3) compared with net income applicable to Morgan Stanley of $1,413 million, or $1.26 per diluted share, a year ago. Net revenues were $3.0 billion, 62 percent below last year’s first quarter. Non-interest expenses of $3.9 billion decreased 33 percent from a year ago. Compensation expenses of $2.1 billion decreased 46 percent from a year ago, primarily reflecting lower revenues. Non-compensation expenses decreased 9 percent, reflecting lower levels of business activity and firm-wide initiatives to reduce costs.
Freddie Mac David Kellermann official found dead (CBS)
Suicide. Sad news.
Treasury Weighs New Mortgage Subsidies (Reuters)
“The Treasury Department is considering giving banks and investors billions of dollars in fresh incentives to modify troubled mortgages and save homeowners from foreclosure, sources familiar with official deliberations said.
Under one scenario, investors in second liens would receive a cash payment if they agree to ease the terms of troubled loans and accept a smaller return on their mortgage investment, the sources said.
During the height of the housing boom, some borrowers were able to buy a home with no downpayment by adding a second lien and many of those loans are now failing as the economy and housing market struggle.”
Geithner Can Move Markets (FT)
“Tim Geithner, US Treasury secretary, on Tuesday sparked a rally in financial stocks after he said the “vast majority” of the nation’s banks are well-capitalised and damped investor fears that the government will wipe out their holdings.
However, Mr Geithner conceded the massive effort by the US authorities to rescue the banking system from the crisis was showing only “mixed” signs of success.”
Bill Set To Address Credit Cards (Reuters)
Members of the Hill are expected to address Credit Cards next, going after the evil empire that’s charging fees to people to buy stuff they can’t afford (and probably won’t/can’t pay back). We’ll see the banks respond to this by cutting credit (if not all together, then) substantially for those that are low-income high-risk; there’s no upside to floating these people lines when they run a risk of default that can’t properly be accounted for.
“A Congressional panel is expected to approve legislation on Wednesday that would curb high credit card fees and penalties assessed by many banks that have benefited from the federal government’s financial bailout program.
The pro-consumer bill, which would mean sweeping changes for banks that issue cards, is an important test of the political will of Democrats who are pushing for U.S. financial regulation reform.”
