Over the weekend, the LA Times reported that a group headed by Steve Cohen was among those that advanced to the second round of bidding for the Los Angeles Dodgers. Mark Cuban, “veteran baseball executive” Dennis Gilbert, and former Dodgers players Steve Garvey and Orel Hershiser are out; at the top of Cohen’s elimination list remain Magic Johnson and Joe Torre. Obviously, we have no idea whether or not the SAC Capital manager will emerge victorious. Either way, though, something about all this has been troubling us: namely how acquiring a baseball team figures into SC’s long-term plans. Continue reading »
ideas
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Posted in:
Hedge Funds
Steve: Remember That Not Getting An MLB Team Can Sometimes Be A Wonderful Stroke Of Luck
By Bess Levin
Earlier today, we discussed the upcoming bonus season and the fact that, for those who are employed by banks, it’s looking to be something of a disappointment. Numbers are estimated to be down 20-30 percent on average from last year, with fixed-income being hit the hardest. For many, it’s cause for some preemptive JO&C’ing at the desk this morning and some curling up into the fetal position this afternoon. According to Black Swan author Nassim Nicholas Taleb, however, you drying those eyes, picking yourself up off the floor and thanking your lucky stars you’re getting anything ’cause if he were in charge? You’d get no-thing. Continue reading »
As you may have heard, over the weekend, Denmark introduced a tax on fat. The measure is aimed at “increasing the average life expectancy of Danes” but obviously it’ll make the country a little extra coin, too. Great for them, not so great for hedge fund manager Julian Robertson, who had to sit at home steaming over the fact that his idea had been stolen. For those who supposedly don’t remember what we’re talking about, perhaps this quote will jog your memory?
“I would love to be the Obesity Czar.” Continue reading »
The answer to BofA's problems?
Earlier today on CBNC, Jim Cramer pitched an idea that he thinks could end Bank of America’s problems: beg a billionaire to vouch for you. Just like Goldman Sachs got Warren Buffett and Citi has Prince Alwaleed bin Talal, Bank of America needs someone to get out there and say to the markets, “It’s okay, these guys are cool.” Personally, Cramer likes the idea of Carlos Slim, telling his colleagues “You know we forget he’s the world’s richest man…if the guy wants to make a statement that says America is the place to invest, hey, Bank of America…would that not be an interesting match?” Having said that, Slim may not be into the idea and backups should be considered. The following represents a very rough short list of people, whether they be billionaires or individuals who simply inspire confidence either through charm or fear with whom we think Brian Moynihan should consider taking a lunch. Continue reading »
“Philosophy, sociology and liberal arts agendas will no longer suffice.” Continue reading »
Joel Stein is a reporter for Time magazine writing his first book. It’s about “learning, at 39, how to finally become a man.” In addition to “the typical red state stuff” (4 days of basic training in the army; fight Randy Couture from the UFC; hunt; do a shift as a fireman; fix a house; work in the pit crew at a car race), there is a chapter about Wall Street. That’s where you come in. Continue reading »
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Posted in:
Banks
Barney Frank Wants Steve Cohen To Pay For Housing Programs Republicans Would Cut
By Bess Levin
As you may have heard, Republicans want to get rid of several housing programs, including the Neighborhood Stabilization Program and the Home Affordable Modification Program. Representative Barney Frank does not want them eliminated but understands the other party has issues with federal spending and has therefore proposed a compromise for where the money can come from. Continue reading »
“Longer-term, AIG shouldn’t exist,” Golub said in an interview airing today on Bloomberg Television’s “In the Loop with Betty Liu.” [Bloomberg]
New York Hedge Fund Roundtable Chair Suggests Interesting Propsal For Manager Pay: Caps
By Bess Levin“How much better do you live with $2 billion than $50 million?” chairman and founder of the New York Hedge Fund Roundtable Stanely Goldstein recently asked, the insinuation being that one does not feel much of a difference between living comfortably and living at a pay grade that affords you at least one private jet, multiple castles, an oil tanker, 1,000 eunuchs, a McMansion in every city in America (for storage), and a wing in your main house dedicated solely to deep-frying things. Goldstein wanted to make that case because it would help garner support for an idea he has: to cap hedge fund manager pay. Now, before everyone gets their fleece knickers in a twist, know this– Stan is doing this for you! “I am a free-market economy, right-of-center Republican, and I resent how the liberals have used hedge funds as a punching bag,” Goldstein said. The way he sees it, hedge fund managers would be much happier if they took home a number that wouldn’t be “ridiculed” by the public. Continue reading »
“While Bills fans can’t own the team they cheer for, there is nothing preventing fans from lending to their team,” investment banker Steve Brady wrote on his Web site, www.billsbonds.com. “Or, more accurately, lending money to a new owner by purchasing bonds (called Bills Bonds). The new owner could use the proceeds from these bonds to help pay the Bills’ hefty price tag and keep the team in Buffalo.” Investors would get their money back over time, receive interest payments (although lower than the market rate) and help keep the Bills where they belong, Brady has stated…”These fans would not be stockholders,” he emphasized about his plan. “They would be the mortgage providers.” [Buffalo News via Business Insider]
A brother in need writes:
Dear Dealbreaker,
I’m an American living abroad in one of the few places where finance types aren’t still public enemy #1. I’m going to be back in the states for a few weeks over the holidays, armed with plenty of appreciating foreign currency, and a will to spend lots of money before governments around the world tax it or inflate it away from me. I’ve been at a well-known shop for just shy of a decade and bonuses this year are on track for the old killing it. Continue reading »
