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Opening Bell: 05.19.10

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Goldman Sachs Hands Clients Losses in ‘Top Trades’ (Bloomberg)
Seven of the investment bank’s nine “recommended top trades for 2010” have been money losers for investors who adopted the New York-based firm’s advice, according to data compiled by Bloomberg from a Goldman Sachs research note sent yesterday. Clients who used the tips lost 14 percent buying the Polish zloty versus the Japanese yen, 9.4 percent buying Chinese stocks in Hong Kong and 9.8 percent trading the British pound against the New Zealand dollar.

Winfrey Hires Star Manager (WSJ)
Steve Cohen is going to work for the talk show host. No, BUT MAYBE SOME DAY. "Ms. Winfrey, one of the most powerful brands in media, has begun setting up a so-called family office to handle her personal investments, according to people familiar with the situation. Her first hire: Peter Adamson, a well-regarded investor who currently serves as chief investment officer for Eli Broad, the Los Angeles billionaire and philanthropist."

'Flash Crash' Plan: Circuit Breaker For Every Stock (WSJ)
The SEC said trading would pause in certain stocks if the price moved 10% or more in a five-minute period, under a plan set to start in mid-June for a six-month pilot period.

Roubini: Financial Reform 'Cosmetic,' Won't Stop Losses (CNBC)
“We need more radical reforms," he added. "The idea that we’ll be able to close down an institution like Goldman in an orderly way—a business that operates in nearly a hundred countries—is absurd.”

Goldman's O'Neill Says Financial Crisis Helped Curb Euro's `Overvaluation' (Bloomberg)
“People need to remember that for the past couple of years the euro’s been very expensive,” O’Neill told Bloomberg Radio from London today. Still, the euro’s recent slide indicates expectations that monetary union could unravel, “so, there needs to be something done by European policy makers to stabilize the euro in the near future,” he said.

Hedge Funds Bet Europe's $1 Trillion Rescue Package Won't Cure Debt Crisis (Bloomberg)
“The EU and the IMF effectively went all-in with a bad hand in the highest stakes game of financial poker ever played with the world,” wrote Kyle Bass, head of Dallas-based Hayman Advisors LP, in a letter to clients sent after the bailout was announced. John is one manager who may not be replicating the CDS trade he used three years ago. Earlier this month, in a conference call with investors, he called Europe’s debt problems “manageable.”

Hugh Hendry Shorts China, Betting on 1920s Japan-Like Crash (BW)
Hendry’s flagship Eclectica Fund, a global macro hedge fund with $180 million in assets, may gain almost $500 million from its options if China’s economy plunges into a recession, he said. The options cost the fund about 1.5 percent of its net asset value annually, Hendry said.


Blackstone Setting Up Presence In Australia
(Reuters)
Put another 4 million dollar crab leg shrimp on the barbie: "We are establishing a presence here to integrate the firm into the local business community, seeking opportunities to invest and to raise capital," Philip Levinson, managing director of Blackstone Group Australia, told a conference call.

Facebook Grapples With Privacy Issues (WSJ)
Mark Zuckerberg is watching you.

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