Elliott Management

Paul Singer Explains It All

Fresh off a busy week in Davos, the Elliott chief pronounceth on the top issues of the day. For starters, he doesn’t get this whole bitcoin thing:

Paul Singer, founder of $23.3 billion Elliott Management Corp., told investors he was “shocked” by the virtual currency Bitcoin’s popularity and skeptical of its long-term prospects, according to a quarterly letter sent this week.

“There is no more reason to believe that Bitcoin will stand the test of time than that governments will protect the value of government-created money, although Bitcoin is newer and we always look at babies with hope,” Mr. Singer wrote.

Gold, however, he likes, even if he doesn’t fully understand what’s going on with it right now.

Mr. Singer encouraged investors to consider gold, which he wrote was “currently available at a good price….”

Gold is out of fashion, but we think the explanation for why it has been drifting down is not compelling. The economy seems stuck in the doldrums, but most so-called ‘experts’ have been changing their minds almost weekly about when they think the economy will finally begin a long-term acceleration to the upside,” Mr. Singer wrote in the letter.

He doesn’t like banks breaking the law and getting away with it.

“Lawlessness is a slippery slope,” the letter said, addressing one of the most controversial topics in financial services today, one seldom reported on or discussed in the media. “If a little ‘excess discretion’ is used… or a law is ignored in thousands of subtle ways, then over time the rule of law will be replaced by corruption and whim,” the letter said….

“Laws are not self-executing,” Singer wrote in the investor letter, as he cited a need for those entrusted to interpret the law and handle investigation and enforcement responsibilities to do so “with honesty and intelligence.”

He really doesn’t like all this talk about raising the minimum wage.

“Put bluntly, these policies would destroy jobs and cause companies and even entire industries to move elsewhere. These movements are politically motivated–a way for politicians to fake compassion,” Singer wrote in a letter to investors of his $23.3 billion Elliott Management on Jan. 27.

“If they gain traction, millions more people will make the transition from gainful employment to government dependency as jobs get priced out of existence by the rise in employment costs. Such policies would inexorably lead to lower economic growth, higher unemployment and a citizenry that is less and less self-sufficient.”

But most of all, he really, really doesn’t like it when hedge funds stupid enough to invest in Argentina’s post-haircut bonds waste his goddamned time with ridiculous pie-in-the-sky bullshit, when he and Cristina Kirchner could just hash the thing out over lunch. Read more »

Paul Singer’s Guilty Pleasure

Derivatives may be imperiling global stability and undermining society, but the Elliott Management chief just can’t help himself. Read more »

Baupost Group, Paulson & Co. and Cargill’s hedge fund unit think it’s awfully fishy that the corpse of Lehman Brothers is so eager to sell almost $3 billion in bankruptcy claims to Elliott Management and King Street Capital Management for a little over $1 billion. Especially since CarVal would like to pay almost $1.5 billion for the same claim.

U.S. Bankruptcy Judge James Peck thinks it’s all a little strange, too. But, to use the parlance of our times, tough shit. Read more »

  • 29 Jul 2013 at 2:43 PM

Sovereign Defaulters Can Always Count On France

American and the IMF have abandoned Argentina in her holy war to avoid paying her bills. But the French remain steadfast, and will undoubtedly tip John Roberts’ scales in favor of the Argentine government. Read more »

Paul Singer Haggles A Third Hess Board Seat

A promise to seat two of its board candidates after Elliott Management voted for its own five was insulting. A promise to seat three under the same circumstances? That’s a compromise Paul Singer can embrace. Read more »

Paul Singer Is Feeling Magnanimous In Pre-Victory

Appreciative as he is of Hess’ generous offer to seat two of his five board nominees after he votes for Hess’ own five, Paul Singer rather contemptuously declines. But, even though he’s quite sure he’s the one holding the cards at Thursday’s shareholder confab, he wouldn’t want you to think him unreasonable, so he’s got a counter offer:

Give me everything I want, and I won’t insist on embarrassing you at the proxy polls this week.

Your move, Hess. Read more »

Paul Singer Will Be Vindicated—By Gold

Paul Singer is pissed that gold keeps losing money—his money—and, like John Paulson, he’s mystified that people have temporarily lost some of their attraction to shiny objects.

That said, Paul Singer, who is worried about many things, namely that this country is going to hell in a handbasket, is not worried about gold. Not one bit. Read more »