Insider Probe Targets A Top Goldman Manager (WSJ)
David Loeb, a Goldman managing director who acts as a middleman between the Wall Street firm and some of its most important hedge-fund clients, is the latest Goldman official to be investigated in the insider-trading probe…Known at Goldman and among clients as self-deprecating and colorful, Mr. Loeb sometimes signs his emails “cbf,” for “chunky but funky.”
Dalio Earned Clients $13.8 Billion to Lead Hedge Funds as Paulson Slumped (Bloomberg)
Ray Dalio’s Pure Alpha hedge fund made $13.8 billion for its investors last year, while John Paulson lost clients almost $10 billion after an unsuccessful wager that the U.S. economy would recover, according to a report by LCH Investments NV. Pure Alpha, part of Dalio’s Bridgewater Associates LP, has earned $35.8 billion for investors since its inception in 1975, said LCH, a firm overseen by the Edmond de Rothschild Group. Losses for New York-based Paulson & Co. last year cut gains the firm has made for clients since its 1994 founding to $22.6 billion, LCH estimated..Paulson, who made billions of dollars betting against the U.S. housing market in 2007, remains the third-most profitable hedge fund manager ever after rivals at Bridgewater and Quantum, according to LCH. “Our performance in 2011 was clearly unacceptable,” Paulson, 56, wrote in a letter sent this month to clients…New to LCH’s list of the most profitable hedge funds through 2011 is Steve Cohen’s SAC Capital Advisors, which has made $12.2 billion for clients since inception in 1994, according to LCH. SAC, based in Stamford, Connecticut, replaced Edward Lampert’s ESL Investments Inc. of Greenwich, Connecticut.
Wells Fargo, Goldman May Face Charges Over Mortgage Bonds (Reuters)
Goldman received its Wells notice on Feb. 24, relating to a $1.3 billion subprime mortgage-backed securities deal in late 2006 that the bank underwrote. Goldman said it will be making a submission to the SEC related to the case and communicating with SEC staff to address their concerns. The bank has also received inquiries from governmental, regulatory bodies and self-regulatory entities concerning certain transactions Goldman entered with MF Global prior to the brokerage firm’s bankruptcy filing. Goldman said it is cooperating with all such inquiries.
Facebook Has More Growth Ahead, Says Co-Founder (CNBC)
Facebook has much more growth still left and will tap its existing users as well as secure growth by increasing the total number of users, Eduardo Saverin, one of the four co-founders of Facebook who retains a 5 percent stake in the social media giant, told CNBC Wednesday. The company is still “in the very early beginnings,” Saverin said, despite some analysts saying the social network had peaked. “There are a lot of things to get done. What Facebook has done today is it’s allowed us to have an identity on the web, but there is a lot more to do,” he said.
Ex-Bear CEO: We Wouldn’t Have Done Anything Differently (CNBC)
“You can go back and say, should we have done some things differently leading up to the environment we got in?” Alan Schwartz said today. “You know, you can always say that. Hindsight is 20/20. “Once the markets froze there was really very little we could do. The liquidity environment was what pushed us over the cliff. In retrospect, I didn’t think there was a lot that any one player could have done about that.”
JPMorgan’s Dimon Assails Newspaper Pay Levels in Bank’s Defense (Bloomberg)
“Obviously our business, in investment banking in particular, all of our businesses, we have high capital and high human capital,” Dimon said yesterday at a presentation in New York. “Newspapers — I went and got this one day just for fun — 42 percent payout ratio, which I just think is just damned outrageous…Worse than that, you don’t even make any money!” Dimon said, directing his comments to those in the media covering the company’s investor day and drawing laughter from his audience. “We pay 35 percent. We make a lot of money.” Read more »