FrontPoint Investors Seek Withdrawals (FT)
“It is difficult for an entity to keep going because at a certain point the business ceases to be viable whether it has crossed the line or not,” said the head of one firm which invests tens of billions of dollars in hedge funds on behalf of clients. “The regulators effectively put them out of business.” Investors in these hedge funds say they have no choice but to pull their money at the first hint of trouble. “If I get even a whiff of an investigation, I want to get out before the next guy, especially if I know they have illiquid stuff or I don’t know what they have,” says the head of one fund of funds. “Everyone’s nightmare is to get stuck with the stuff in the basement.”
Architects of GM's IPO Sought to Limit Windfall for Wall Street (Bloomberg)
Want to underwrite one of the largest initial public offerings in history? Chop your usual fee by three-fourths and commit to limiting Wall Street’s windfall. That was the deal David Miller and Tim Massad, the unheralded government architects behind the General Motors Co. stock offering, gave investment banks interested in handling the deal. When the two U.S. Treasury officials made their expectations clear, “we could kind of hear their jaws drop over the phone,” said Massad, Bloomberg Businessweek reports in its Nov. 29 issue. The IPO, led by JPMorgan Chase & Co. and Morgan Stanley, was a nail-biter for Massad and Miller, who also manage the government’s bank and insurance company investments. “You want the deal to go well” without looking overly optimistic in pricing the shares, Miller said. “At the same time, we don’t want it to go up way too much” because that would mean taxpayers left money on the table on the first day of trading.
This Black Friday, Somebody’s Watching While You Shop (CNBC)
This weekend, as you pull into the shopping mall parking lot for the hottest Black Friday sales, it’s entirely possible that your picture will be snapped by a satellite orbiting high above the Earth. Its being done by retail-market analysts who want to know how many customers are heading to the stores — and what that means for retail stocks this season.
Howard Davidowitz: "Obama Is Toast" (BI)
Also: The situation in Europe, and specifically Ireland, is very similar to what’s happened in the United States, Davidowitz notes. The only major difference is the U.S. can still borrow very cheaply. But, unlike Europe we’ve "done nothing! Nothing!" to get spending under control. He fears “the U.S. dollar is at risk” and could face a crisis “in the next two years,” if we don’t start our own austerity plan.
Jonathan Weil: What to Do When the FBI Raids Your Hedge Fund (BW)
Soon the unsuspecting public will be told that financial stocks are plunging on the news that your firm is being raided. You have the benefit of knowing this in advance. The only remaining questions: Do you short Goldman Sachs? Do you short other large banks, too? More importantly, do you short them for your personal account, or for your fund’s? Sensing nothing but upside in the downside, you settle on all of the above.
The 7 Best Deep-Fried Turkey Disaster Videos (Eater)
What to Do When the F.B.I. Knocks (Dealbook)
The law firm O’Melveny & Myers has issued an alert to clients with a few pointers. First thing? Ask for identification. Second thing? Call an O’Melveny lawyer for advice. The alert provides the home and cellphone numbers of some top lawyers just in case the unwelcome visit comes late at night. The firm also suggests clients read the warrant, dismiss all nonessential employees for the day and, of course, don’t consent to a search. And should agents try to get their hands on any legal documents, “tell them those documents are privileged and ask them to wait until attorneys arrive to speak with them about this issue.”
Former Blue Index Directors, Trader Charged by U.K. With Insider Trading (Bloomberg)
Two former Blue Index Ltd. directors and a trader at the London derivatives broker were charged with insider dealing by the U.K. Financial Services Authority over claims they traded before seven merger announcements. Blue Index’s co-owners, James Paul Sanders and James Swallow, and senior trader Christopher Hossain, were among five people charged at a London police station, the FSA said in a statement today. Former employee Adam Buck and Sanders’ wife, Miranda Sanders, were also charged in the case.
Rich Americans Ditch Homeownership For Renting (CNBC)
In March Patrick Lee sold the Manhattan apartment he bought in 2008 for about the same price he paid and moved — along with his wife and child — a few steps away into a luxury, two-bedroom rental unit in a brand new building. Lee wouldn't disclose what he's paying, but similar two-bedroom apartments in the building usually rent for $11,000 a month. “I wanted to protect ourselves from prices going down,” says Lee, who is a managing director at a major bank. “I didn’t want to be an owner anymore.”
KKR to Purchase Meow Mix Maker Del Monte Foods for $4 Billion (Bloomberg)
KKR, Vestar Capital Partners and Centerview Partners will pay $19 a share in cash, San Francisco-based Del Monte said in a statement yesterday. That would be 21 percent higher than the closing price in Nov. 18, the day before takeover talks were reported. The buyers will assume about $1.3 billion in net debt.
Market Rules, Made To Be Broken (WSJ)
The Fed's efforts have scrambled the usual signals for Jeffrey Hirsch, editor-in-chief of the Stock Trader's Almanac, which popularized the Santa Claus rally and other seasonal patterns. Mr. Hirsch says the Fed probably can't be blamed for all of the disruption. In recent days, North Korea has roiled the traditional patterns. "Thanksgiving has historically been a good week, but gunshots and artillery have been known to disrupt a number of seasonalities," Mr. Hirsch says.
Angelina Jolie Refuses To Celebrate Thanksgiving, Feels It's A Story Of Murder (PE)
"Angelina Jolie hates this holiday and wants no part in rewriting history like so many other Americans," a friend of the actress says. "To celebrate what the white settlers did to the native Indians, the domination of one culture over another, just isn't her style. She definitely doesn't want to teach her multi-cultural family how to celebrate a story of murder."