THE FINTAG NEWSLETTER @ 08 October 2009

FINTAG COMMENT

Expenses.

So I took a lot of money out my business and bought a few depreciating assets like USD, Spanish real estate and a Latvian night club. Having to manage my own money as well as others was easy but managing my own isn’t in a low interest environment. Thankfully the yields on T-Bills are fine and dandy but my real problem is more important. As a Chairman, or Chairperson for those of a nervous disposition, I get no expense account.

Having to pay the rack rate for a meal at Murano (the Square is so 2007) one feels the pain. Throwing my own money after food is not right. I hate being a snob so on my travels I shall be eating cheap food and staying in 4 star hotels. [Editor: As your new pa / accountant I think you mean 1 star hotels]. My flights are being paid for p.a. so any mishaps and those involved will get my wicked tongue [Editor: Steady].

Today I am flying across the USA, staring down at all that space and backward people. And I too shall be at the back. Of the plane. Fingers crossed I don’t sit next to someone who doesn’t wash.

HEDGE FUND CROSSROADS: SURVEY FINDS MANY HAVE “NO CONFIDENCE” IN OWN MARKET TIMING, YET THEIR NET EXPOSURE IS ON THE RISE.

all about alpha

If there’s one prevalent complaint among investors of all stripes, it’s that the majority of hedge funds “didn’t do what they were supposed to” during last year’s market collapse and subsequent economic downturn: hedge.

Which begs the question, “How good are hedge fund managers at predicting the future direction of markets anyway?”

A series of reports in the past week seem to suggest that although hedge fund managers aren’t sure which way markets are going, they aren’t complaining about rising markets.

Fintag says
W, V, U, L, M, – which one and why? We are all beta monkeys and always have been. Alpha is a myth.

emii says ” Ex-GLG Manager Launches Paris HF “

DEBT-MARKET PARALYSIS DEEPENS CREDIT DROUGHT

new york times

The continued disarray in debt-securitization markets, which in recent years were the source of roughly 60 percent of all credit in the United States, is making loans scarce and threatening to slow the economic recovery. Many of these markets are operating only because the government is propping them up.

But now the Federal Reserve has put these markets on notice that it plans to withdraw its support for them. Policy makers hope private investors will return to the markets, which imploded during the financial crisis.

Fintag says
My new hedge fund manager, FatTail Capital will be launching a number of esoteric funds. Distressed debt is something I love as are long only exotic musical instruments and equity long short where there are less than 2 vowels in the name of the equity.

LLOYDS PLANS A £12.5BN SHARE ISSUE

city am

LLOYDS Banking Group will turn to traditional investors rather than a sovereign wealth fund to help it raise up to £25bn to exit the government’s Asset Protection Scheme (APS), City A.M. can reveal.

Sources familiar with the bank’s plans said last night that it had submitted a proposal to the Financial Services Authority (FSA) that would see it raise up to £25bn, around £12.5bn in a cash call and the remainder in “a variety of other instruments”.

Fintag says
In some ways this is really a UK gilt auction ….

CLARKE TRIES TO APPEASE HEDGE FUNDS OVER NEW RULES

times

Ken Clarke, the Shadow Business Secretary, does not believe that Brussels poses any grave threat to the hedge fund industry and that proposed legislation inevitably will be watered down as a matter of course.

Speaking to The Times at the Conservative Party conference in Manchester, the former Chancellor also said he did not believe that hedge fund managers were genuinely concerned about the prospect of new European rules governing their industry.

Fintag says
The Cliff Richard of the Tory party should get back to his whisky and cigars. The man is an ignorant tw*t.

Setting up a hedge fund in the UK is horrendous. The Due Diligence is painful, I have to put up capital and report my doings to the FSA all day long. In the US I just incorporate a company, grab a series 7 license and off I go.

I should really demand to be a finance adviser to the next UK government.

OBAMA UNDER FIRE OVER FALLING DOLLAR

financial times

The falling US dollar is giving ammunition to the critics of the Obama administration and fuelling broader concerns about the potential erosion of America’s reserve currency status.

The depreciation of the US dollar is sparking growing jitters among critics of the Obama administration over the potential loss of America’s reserve currency status. Economists point out that a declining dollar could prove a boon to the US economy in the absence of credible anxiety over inflation.

Fintag says
I think the blame should fall at Bernanke’s feet. Looks like the US will have to raise interest rates. Hahahahaha that would cause the market to wobble but it is the only course.

The man needs a hot bath, sorry, hot money.

THE WORLD’S TOP 100 UNIVERSITIES LISTED

guardian

The world’s top universities
2009 Rank / 2008 Rank / School Name / Country

1 1 HARVARD University United States
2 3 University of CAMBRIDGE United Kingdom
3 2 YALE University United States
4 7 UCL (University College London) United Kingdom
5 6 IMPERIAL College London United Kingdom
5 4 University of OXFORD United Kingdom
7 8 University of CHICAGO United States
8 12 PRINCETON University United States
9 9 MASSACHUSETTS Institute of Technology (MIT) United States
10 5 CALIFORNIA Institute of Technology (Caltech) United States
11 10 COLUMBIA University United States
12 11 University of PENNSYLVANIA United States
13 13 JOHNS HOPKINS University United States
14 13 DUKE University United States
15 15 CORNELL University United States
16 17 STANFORD University United States
17 16 AUSTRALIAN National University Australia
18 20 MCGILL University Canada
19 18 University of MICHIGAN United States
20 24 ETH Zurich (Swiss Federal Institute of Technology) Switzerland

Fintag says
The UK is holding on but like everything in this country is slipping fast.

bloomberg says ” Harvard Losing Money Externally Helps Mendillo Return to Roots “

WALL STREET’S NEAR-DEATH EXPERIENCE

vanity fair

With the implosion of Lehman Brothers, in September 2008, the realization dawned: Morgan Stanley and Goldman Sachs could be next. In an excerpt from his new book, the author reveals the incredible scramble that took place—desperate phone calls, seat-of-the-pants merger proposals, flaring tempers—as Washington got tough and Wall Street titans Lloyd Blankfein and John Mack fought for survival.

Fintag says
We were all part of this and it was terrifying. However, I have never mentioned this before but I found LTCM way more frightening. Even so, this makes a fun read.

Goldman was deemed not only too big to fail but the world would destruct into nuclear war. In hindsight that theory is a little over the top but if there were x-men of Wall Street, Goldman would have been Iron Man and Lehman the Joker.

HEDGE FUND OWNER PLEADS GUILTY IN PETTERS CASE

wcco

A Chicago hedge fund owner accused of helping prop up the alleged Tom Petters Ponzi scheme has pleaded guilty to one count of wire fraud.

Appearing in federal court in St. Paul on Wednesday, Gregory Bell admitted helping set up 86 “round-trip” money transfers between his company, Lancelot Investment Management, and Petters Co. Inc.

Bell could face 20 years in prison.

Fintag says
I thought Petters would be the pre Madoff fraud of its time. A sort of Refco part 2. The media thought otherwise and Petters hardly gets a mention these days.

ECB EXPECTED TO KEEP BENCHMARK RATE ON HOLD AT 1%; BANK INDIRECTLY FUNDING HALF OF EUROZONE COUNTRY DEFICITS IN 2009

finfacts

Fintag says
Imagine if the ECB increased its rate by 25 bips? The USD would go into free fall. Go one, be brave, shake up Obama and his pathetic cronies. But of course they won’t.

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