Goldman CEO David Solomon raises financial targets, takes victory lap after crushing 2020 goals [CNBC]
“Two years ago now, there was a lot of skepticism around the targets we laid out and what we thought we could accomplish,” Solomon said. “When you look at our progress, obviously, we way exceeded the returns.”
Goldman’s new guidance for returns on tangible common shareholders’ equity is 15% to 17%, up from the 14% target that the bank had set in 2020. Still, the firm far exceeded those targets in 2021, when returns topped 24%.
Activist Investor Daniel Loeb Sees Roughly $1 Trillion of Untapped Value in Amazon [WSJ]
Mr. Loeb said on a private call with the hedge fund’s investors that the market is failing to recognize the full value of Amazon’s two disparate businesses, its core e-commerce operation and its Amazon Web Services cloud unit…. There is no sign that Mr. Loeb, one of the best-known shareholder activists, is pursuing an activist campaign at Amazon. The basic sum-of-the-parts analysis of Amazon has been widely discussed in recent years on Wall Street—especially since antitrust regulators began zeroing in on the increasing power of large tech companies like Amazon, fueling talk of potential break ups.
Hedge Funds Millennium, Point72 Discuss Bids for Quant Firm Engineers Gate [Bloomberg]
The two hedge funds are bidders to buy the firm in which Blackstone Inc. has an economic interest, the people said, asking not to be identified because the information is private. Engineers Gate, started in 2014 by former Highbridge Capital Management executive Glenn Dubin, managed about $1 billion as of February 2020. The fund rose about 5% in January after gaining roughly 25% last year and 11% in 2020, one of the people said…. In 2020, Blackstone replaced Canada Pension Plan Investment Board as Engineers Gate’s anchor investor. The pension pulled from the hedge fund following a period of poor performance and because of Dubin’s ties to convicted pedophile Jeffrey Epstein, people familiar with the matter said at the time. Dubin retired from Engineers Gate that same year.
Hedge fund Caxton raises fees as inflation bets pay off [FT]
Caxton is now raising the management fee on its flagship Global fund from 2 per cent to 2.25 per cent, while it increases the vehicle’s performance fee from 22.5 per cent to 25 per cent…. It is also changing the Global fund’s liquidity terms in order to limit the amount that investors can withdraw every quarter. In addition, Caxton is planning to shut its Macro fund, personally run by chief executive Law, to new money to avoid it becoming too large and potentially damping returns….
Such steps put Caxton at odds with much of the wider $4tn hedge fund industry, where fees have been falling for years. They also underscore the power wielded by a small number of big-name funds that have delivered strong gains in recent years.
Private equity founder John Wilson gets 15 months in prison in U.S. college scandal [CNBC]
The sentence imposed on John Wilson, the founder Hyannis Port Capital, is the longest that any of the dozens of parents, coaches and other defendants charged in the “Varsity Blues” college admissions scandal have received to date…. Prosecutors argued Wilson, 62, deserved a longer sentence after being convicted of bribery, fraud and conspiracy charges, saying his involvement in the scheme was more extensive and involved four-times as much bribe money, $1.2 million.
Jared Kushner’s friend Ken Kurson pleads guilty in stalking case involving ex-wife, earlier got Trump pardon [CNBC]
Kurson’s plea in Manhattan Supreme Court comes more than a year after then-President Donald Trump pardoned the 53-year-old political consultant in a federal criminal case where he had been charged in late 2020 with cybercrimes against other individuals…. Kurson was arrested in August on felony charges of eavesdropping and criminal trespass for having allegedly accessed his then-wife’s communications in 2015 and 2016 while working as editor-in-chief of Observer Media Group….
Kurson had founded cryptocurrency and blockchain technology website Modern Consensus. He was on the board of cryptocurrency company Ripple as recently as 2020.