You are doing that aren’t you? Now you have no excuse if they’re not perfect:
Ms. Schapiro, in prepared testimony before a panel of the U.S. House oversight committee, said that the SEC would not meet a July 4 deadline set by Congress to complete the rules lifting the longstanding ban on publicizing private securities offerings.
She said the SEC’s work on this issue is more complicated than it would seem because Congress directed the SEC to require issuers of private offerings to take reasonable steps to verify that purchases are accredited investors.
So I’m excited to see your ads on Dealbreaker for which you will pay top dollar, but as I idly looked for the MAAX zips documentation today it occurred to me that there’s another interesting possibility in this rule change that could also redound to Dealbreaker’s benefit, which is that it might dramatically increase the amount of information out there on private offerings.
Right now companies in the U.S. – and for “companies” read “companies, hedge funds, structured credit vehicles, and other what-have-you” – offer their securities in one of two ways:
(1) publicly, and
(2) not. Read more »
The principal weakness we share with most other money managers is the fact that our capital base is not permanent, and we therefore keep cash on hand and/or own passive liquid investments which we can sell to meet potential investor demands for capital. To address this weakness in our open end hedge fund structure, later this year, we intend to launch the private phase of Pershing Square Holdings, Ltd., which we expect to eventually list on the London Stock Exchange…In [the cases of Canadian Pacific, JC Penney, Justice Holdings and General Growth], we had the resources to effectuate the necessary change and the capital commitment from investors who were willing to wait for the changes to be implemented. During the course of each investment, however, there have been periods of enormous skepticism both from the investing public at large and, presumably, from some of you who are invested in the Funds…The Pershing Square funds have been a large beneficiary of our ability to take advantage of periodic market skepticism by increasing our ownership at more favorable prices. Volatility is the friend of the unleveraged long-term investor. We much prefer the bumpy road to higher rates of return than a smoother ride to more modest profits. Read more »
Back in October, a former Citadel employee, Yihao “Ben” Pu, was arrested and charged with “stealing trade secrets” from Ken Griffin (by “copying company data onto a removable storage device,” and then attempting to sell it to Teza Technologies AKA the firm a bunch of ex-Citadel guys tried to join in 2009 before being sued for doing so by Griffin, as well as the the shop a former Goldman programmer, Sergey Aleynikov, went to jail for after giving it proprietary GS code). Now, because apparently people just can’t help themselves, KG has been forced to levy another allegation of theft against some former employees who he believes took a piece of his property when they left for high-frequency trading firm Jump Trading. Does Griffin have actual evidence that they swindled him? No, not exactly. But he’s got a hunch, and that hunch is based on the fact that since 2005, when people from Citadel’s “tactical trading group” started leaving for Jump, “some of the strategies” employed by the TTG “have become less profitable” and are “behaving in a way consistent with their having been copied by rivals.”
So what KG would like a court to do is force Jump to turn over “personnel documents, strategy and trading records, and source code,” which will prove him right and the Citadel defectors to be the pillagers he knows they are. Evidence in hand, Griffin will then sue Jump and everyone named Ken Griffin will go home happy. The only issue that needs to be worked out is Jump Trading’s cooperation, which so far is proving difficult to obtain. In fact, the firm is being downright unhelpful and not only that? Its legal team has accused Ken of being the thief, or at least trying to be. That’s right: the way JT sees it, Citadel’s new algorithm development system is a two-step process that goes something like this:
Step 1: Steal successful algorithms from rival firm.
Step 2: Use them. Read more »
After Raj Rajaratnam got what prosecutors say was an illegal tip about Goldman Sachs Group Inc. (GS), a partner at Galleon Group LLC who was excluded from the trade turned red-faced and angry, a witness at the Rajat Gupta trial testified. Prosecutors claim that Gupta, who was a Goldman Sachs director, tipped Rajaratnam on Sept. 23, 2008, that Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) would make a $5 billion investment in the firm…Ananth Muniyappa, then a Galleon trader, told jurors yesterday that Rajaratnam instructed him to hurriedly buy Goldman Sachs shares that day, before the Buffett deal was announced. Today, Muniyappa described the reaction of Leon Shaulov, the Galleon senior portfolio manager who hadn’t bought shares in Goldman Sachs, when the Buffett transaction became public and the shares rose after the close of trading on the New York Stock Exchange. “He was pretty angry,” Muniyappa told jurors. “Hair all over the place, red face, eyes popping out.” [Bloomberg]
April performance. Read more »
Einhorn says he has a lot of stocks to talk about, starts with Martin Marietta Materials, which he says has “lots of problems.” Einhorn calls MLM CEO a “degree in megalomania”…Einhorn just pulled out a magic wand and I’m pretty sure made a Harry Potter reference. And he’s onto talking global economies. He’s talking up a stock in Norway known as GJF. [Deal Journal]
It seems that some combination of Dan Loeb persistence, cancer, and possibly incorrectly filled out job application paperwork have brought down Scott Thompson at Yahoo, and that’s not the only success activist investors have to report recently. From Bloomberg:
A generation ago such investors typically grabbed headlines under a different label: corporate raiders, robber barons, barbarians at the gate. In boardroom dramas, they were cast as the cold, calculating capitalists who ruthlessly used their power to slash jobs, liquidate assets, and destroy venerable brands. …
No more. Today, Icahn is the elder statesman in a generation of activists as likely to be praised for holding management accountable as condemned for draining a company’s value. So how did the robber barons of yesteryear become the shareholder’s best friend? Why do they now seem more interested in running companies than stripping them? The answer comes down to a shift in rules, techniques, and investor attitudes. Leveraged buyouts and hostile takeovers have morphed into proxy battles, ad campaigns, and shareholder resolutions.
Part of me wants to read this as a symptom of broader economic changes. Gordon Gekko wanted to layoff unionized mechanics because in 198whatever the private sector employed unionized workers and they got paid a relative lot. Now the private sector employs outsourcing and the guy to get rid of is the CEO, because that’s where the money is. Read more »
Last Thursday afternoon, hedge fund manager Daniel S. Loeb, who is waging a proxy battle against Yahoo, made a simple request: that the board of directors fire CEO Scott Thompson, who had lied about having a computer science degree from Stonehill College, when in fact the academic fraud only graduated with a degree in accounting. Loeb wanted the job done by Monday at 12 noon, EST and as the deadline passed, it was clear the request was would not be honored. As a result, Loeb was forced to demand every single document related to Thompson’s hiring at the company. Emails, heading hunting referrals, thoughts, feelings, the works. Most importantly, the résumé Thomspon submitted when applying for the gig. Did Loeb enjoy dragging this out? No. Did he take pleasure in watching the “carnage” unfold? Certainly not, and he’s shocked and offended anyone would ever think that. Nevertheless, a computer science degree had been fabricated out of thin air and Loeb felt he owed it to shareholders to get some answers. And while Yahoo! has presumably not yet faxed over the documents he asked for, they did offer this: Read more »
How people smile when they're plotting cutting your brake lines.
Earlier this week, it was announced that Zoe Cruz would be closing her hedge fund, Voras Capital Management. Cruz started the fund in 2010, a few years after she was famously fired by John Mack at Morgan Stanley (where she was co-President), for reasons that remain unclear to this day but include theories like: a) the belief that she was responsible for losing the firm a few billion dollars b) a lot of people disliked her– including this guy named Vikram Pandit who was “not a fan“– and told Mack they would leave if he made Cruz CEO c) Mack had to blame either himself or Cruz for some losses and he chose her. d) She was, you know, a girl, and the boys didn’t like that. Regardless, the ousting was probably mildly to majorly humiliating for ZC and since Mack– who she was extremely close with prior to the personnel change– was the one who told her to hit the bricks, it would have been fair to assume she spent a least a little time fantasizing about sticking pins in a Mack voodoo doll and/or slashing his tires.
In 2009, though, Mack and Zoe had lunch and she told him she wanted to start a hedge fund. And maybe it was it was the fact that he was feeling nostalgic, maybe it was the fact that tragedy + time = comedy, maybe it was the fact that he was still riding high from “saving” Morgan Stanley, maybe it was the wine, maybe it was that he was feeling bad about the unceremonious canning and thought “Oh, why not just give the poor girl some money” but Mack went back to the office and “told bank executives that he would like to help her start her new investment business, according to people familiar with the matter.” And when they said, “But John, didn’t you fire her for supposedly taking on too much risk and losing the firm $4 billion,” he said “[Well], her track record was a very good track record.” So Morgan Stanley gave Cruz $20 million and she was on her way. And while we can’t say for sure, and we’re not suggesting money necessarily heals all wounds, the $20 million and the stamp of approval and the fact that she could say to investors she was trying to raise money from ,”Hey look, even the guy who fired me wants in” probably helped smooth things over and improve MS’s standing in the Cruz-missile’s eyes. She likely even had nice things to say about her former employer at social gatherings! And then this happened: Read more »
Patti S. Hart, the Yahoo director who headed the board search committee that picked Scott Thompson as the company’s chief executive, will not stand for re-election, a person briefed on the matter told DealBook on Tuesday. Ms. Hart’s departure, which could be announced as soon as Tuesday afternoon, is the first significant response by Yahoo amid the growing controversy over Mr. Thompson’s academic record. The company is also expected to formally announce later on Tuesday the formation of a three-member board committee to investigate Mr. Thompson’s hiring and how erroneous academic information appeared in official company documents…Before last Thursday, Mr. Thompson’s biography said he had earned both accounting and computer science degrees from Stonehill College in Massachusetts. After prodding by the hedge fund Third Point last week, Yahoo conceded that Mr. Thompson had earned only an accounting degree. Ms. Hart’s biographical information also misstated her academic credentials, saying she had a degree in marketing and economics when it was in business administration. [Dealbook, earlier]
Do you know what time it is? Nearly 1PM, EDT. The significance? That it is over an hour past the deadline hedge fund manager Dan Loeb put the Yahoo board on to fire CEO Scott Thompson and director Patti Hart for being résumé con artists. (Thompson, Loeb revealed last week, lied in SEC filings about having a computer science degree from Stonehill College, while Hart claimed to have graduated from Illinois State University with degrees in marketing and economics when, in fact, she merely earned a bachelors in business administration and specialized in marketing and econ). On Friday, Loeb demanded that the C.V. frauds be terminated for cause given their “demonstrable unsuitability” to continue their roles with the company. Clearly that did not happen, so now this is: Read more »