There is no denying that Jeffrey Gundlach is a hugely talented man whose IQ would rank among the highest in the world if he ever had it tested. “What’s it like having lunch with a genius,” he once asked a colleague, who presumably answered, “To be honest, it’s giving me an inferiority complex just breathing the same air as you, knowing that your brain is the standard for how intelligence will be measured from now until the end of eternity.” Until recently, however, the application of Gundlach’s brilliance was largely confined to bond management. According to a new profile by Bloomberg Markets, though, Gundlach’s intellectual prowess is just as if not more impressive when it comes to crime solving. Read more »
There’s something interesting going on in these Wall Street Journal articles (Money & Investing and Deal Journal) today about how corporate bonds now sometimes trade inside of Treasuries. Or somethings interesting; one thing that’s going on is, like, why the day after the election? One possibility is that the message here – which the Journal is helpfully conveying from bond investors to the government – is “see? get your fiscal cliff shit together or soon you’ll be pricing your bonds outside of Google, and you don’t want that do you?”
BUT THE GOVERNMENT HAS A PRINTING PRESS oh never mind. Maybe Exxon does too, I don’t know.
Citi Analyst’s Ability To Follow Law Was Consistently Strong, At Times Exemplary, At Other Times Not So MuchBy Matt Levine
Citi today fired Mark Mahaney, its internet analyst, and was fined by Massachusetts securities regulators, for sending dumb emails to reporters. The Massachusetts consent order is here. Mahaney’s main misconduct1 is that on April 30 of this year a French reporter asked him about Google’s YouTube business:
- Do you think that YouTube has been above your Total Net Revenue estimate 2011 ($876M)
- Do you think that YouTube will be above your Total Net Revenue estimate 2012 ($1119m)
- Do you think that they are largely profitable?
And Mahaney replied “Yes Yes Yes.” This was problematic because:
The information that [Mahaney] gave to the French Reporter had not been previously published. [He] had published a research report on Google, Inc. on March 21, 2012 and did not publish another research report until his interview with “All Things Digital” on June 21, 2012.
Two thought experiments. First, Mark Mahaney’s job was to drum up institutional business by producing actionable estimates and opinions about the stocks he covered. One way to do this is to publish research reports. Google, it is fair to say, is an important stock that he covered. He did not publish any research reports on Google for three months this year. What do you think he was doing during that time? Your choices are: Read more »
Dollar Shave Club is getting some press today; coincidentally I just used one of their razors for the first time this morning and it was fine, despite having only four blades instead of the now-industry-standard seventeen. So the great razor wars may have been on my mind when I read that Google is splitting its stock to create a new class of non-voting shares. And this story seemed somehow familiar:
(1) Google went public in 2004 with a dual-class share structure that it said would allow it not to be evil, because its visionary founders would not be beholden to the short-term financial pressures of Wall Street;
(2) Facebook is about to go public with a dual-class share structure that it’s pretty frankly saying will allow it to be evil but also oooh connect people etc. etc.,
(3) and it is getting tons of press and has a market cap or pre-market-cap or whatever that’s like half of Google’s despite having like 1/10th of Google’s net income and revenues;
(4) also Facebook is much better at being Facebook than Google+ is at being Facebook;
(5) which makes Google’s relatively elderly late-30s founders Larry Page and Sergey Brin mad;
(6) so they said fuck everything, we’re doing three share classes.
Hedge Fund Manager Accused Of Insider Trading Reveals Inner 12 Year-Old Girl In Unleashing Nuclear Option On Partner In CrimeBy Bess Levin
A Northern California hedge-fund manager was charged Friday with making more than $900,000 on trades in Google Inc. and other technology companies based on improper tips he allegedly received from a neighbor and a business associate. U.S. authorities alleged that Doug Whitman, of Whitman Capital in Menlo Park, Calif., shared information about other publicly traded companies or made payments in exchange for the tips. He also allegedly went so far as threatening to never speak to one co-conspirator if she wasn’t going to be a “slimeball” anymore, authorities said. [WSJ]
Once disgraced, now rehabilitated, and always mustachioed tech banker Frank Quattrone has gotten some well-deserved congratulations for convincing Google to up its bid for Motorola Mobility from $30 to $40 despite the fact that (1) MMI was trading at $24.47 and (2) there was no other bidder. So, yay. Also his firm, Qatalyst, is getting $40mm in fees (44bps of enterprise value on a ~$9bn EV deal) for 14 days of work; co-adviser Centerview, who presumably did not come up with the plan of “try asking for more money,” is getting a piddling $12.5mm.
All that and more is in Motorola’s merger proxy filed today. Also in the proxy, though, are some internal forecasts from MMI – which might help explain Qatalyst’s success, provide ammunition to Motorola shareholders unhappy with the price, and/or raise questions about the quality of MMI’s forecasting. Read more »
The Satisfaction Of Punching Each Other In The Face Was Totally Worth $20 Million to JPMorgan And Goldman SachsBy Matt Levine
When we saw that three boutique banks represented Google and Motorola Mobility in their deal, we were a little puzzled about why. Not that it’s unusual to hire Lazard, Centerview or Qatalyst, but after reading Felix Salmon‘s lament for the breathless pre-market M&A scoop we wondered if that supplied the explanation. Maybe Google and Motorola left out the big banks because they have kind of a deserved reputation for leaking deals, and because keeping news quiet is easier at a smaller shop than at a place with thousands of public-side employees? But on further inspection that theory kind of fell apart, as trading in MMI suggests that the deal may have leaked last week.
The New York Post has what seems to be the correct explanation: Motorola had actually spent a lot of time with full-service bulge bracket investment banks recently, and had come to the considered conclusion that they’re all a bunch of dicks.
Read more »
Sure he’s already achieved “a great outcome for ALL shareholders of Motorola Mobility,” and he’s pretty busy working the speed bag in preparation for his proxy fight with Forest Labs scheduled for later this week, but Carl took the time to stop by Bloomberg TV today and let Google know that if they ever want to talk to someone about breaking up a mobile technology company he’s got a little expertise in that area: Read more »