I tried but I couldn’t cope, so bought an upgrade to First Class. This game of down sizing is not as easy as I thought. Like going cold turkey, one needs to be locked away for a few weeks or you take the easier path and wean yourself off luxury which is what I am doing. My excuse for upgrading was the threat of catching DVT and my nose being sensitive to strange smells. I would prefer not to fly than be treated like a student so I flew First. Next time I will fly Business and then try the back of the plane again.
But enough if this. I decided to start my new company as Fat Tail Capital. However, as pointed out by a concerned reader, this already exists and I apologize for passing myself off as an existing manager. So it is back to the drawing board.
Today’s name will be First Class Capital (sounds better than Economy Capital). Let me know if that has gone too.
I didn’t realise how many unemployed bankers there were out there. My inbox has been hammered with requests from the once great and the good and this is flattering. Investors want fixed income on volatile and hard to price underlyings. Apparently. Once you are an ABS / MBS / CDO junky you will always be one. So it looks like my new funds will be just this. Junk with a bond on top. And I don’t have to pay these people until the fund is up and running (which they will fund too). Now that it is what I call a proper business model.
U.S. DEFICIT FOR 2009 TOTALS $1.4 TRILLION, BUDGET OFFICE SAYS
The deficit amounted to 9.9 percent of the nation’s economy, triple the size of the shortfall for 2008.
The nonpartisan CBO said yesterday the government was squeezed on both sides of the budget ledger in the fiscal year that ended Sept. 30. Tax revenue fell by $420 billion, or 17 percent, to the lowest level in more than 50 years.
And the markets keep on going up …
Taxes at a generational low and debt at a generational high. Staggering, truly staggering. Ben Bernanke, Hanky Paulson and Alan Greenspan are the goblins of future children.
I mean what is Bernanke talking about …
reuters says ” Bernanke sees tighter policies as economy heals “
financial news says ” New threat emerges to London’s financial crown “
city am says ” Rates held by central banks “
TROUBLES AT THE MAIL
Unions are unhappy about the Royal Mail’s modernisation plans. Redundancies have already taken place, and plans for greater mechanisation of sorting – for instance – will likely lead to more, but more than anything they feel Royal Mail management has handled the process badly. Royal Mail’s bosses retort that these are the only way the post office can remain a sustainable business, in light of the falling volumes of post.
Of course I expect you think I shall be ranting about state owned monopolies but I wont.
I am more interested in the author of this post. Emily de Looze. Surely that is not here real name? The men who work on TPA are surrounded by highly intelligent women of a knowing nature. Who would have thought tax was so much fun? I hope I get an invite to their Christmas party. [Editor: Steady on the jet lag]
financial times says ” Cameron attacks ‘big government’ “
HEDGE FIRM SAYS CHIEF WILL RETIRE
Now this man is not a goblin but a hero to us all.
HEDGE FUNDS STRUGGLE TO KEEP PACE WITH EQUITY MARKETS
At the same time, the S&P 500 increased 3.57% (17.03% YTD), the Dow Jones Industrial Average increased 2.27% (10.66% YTD), the NASDAQ Composite Index advanced 5.64% (34.59% YTD), and the Barclays Aggregate Bond Index advanced 1.05% (5.72% YTD).
“Hedge fund managers we talk to are concerned that the markets are rallying while the real economy is shrinking,” said Charles Gradante, co-founder of hedge fund advisory the Hennessee Group. “Liquidity is driving this market, and that is likely to continue with more than $3 trillion on the sidelines. However, liquidity driven markets eventually dry up. Hopefully, credit expansion and GDP growth arrive to support the market in 2010.”
That is because we are (sorry, in my case was) Hedge Funds. We hedge our bets.
ft alphaville says ” The pitfalls of being market neutral “
EX-BEAR STEARNS FUND MANAGER TANNIN WORRIED ABOUT ‘BLOW UP’
Tannin, 47, is set to go on trial Oct. 13 for securities fraud with fellow ex-manager Ralph Cioffi, 53. In a message with the subject title ‘Thoughts” that Tannin sent to himse
And I was telling you all the same thing at the time…
33 HEDGE FUND STAFF SHARE £30M PAYOUT
The accounts show that NewSmith wrote down the value of its listed and private equity investments by £7m, including a £3.3m write-down on its holding in FibreChem Technologies. The group’s profits were also lower after NewSmith sold its debt advisory unit to Unicredit Group. NewSmith manages $3bn (£1.86bn) of assets having lost $2bn in the past 18 months because of redemptions and the market downturn.
Big deal. After tax that will be enough for each of these people to buy a Mini Cooper.
THE NOBEL PRIZE FOR ECONOMICS MAY NEED ITS OWN BAILOUT
The economics prize is not a prize of the Nobel Foundation; rather, it was created in 1968 by the Central Bank of Sweden as a “prize in economic sciences in memory of Alfred Nobel”. However, it now has the same procedure of selection by the Swedish Academy, and the same cash award presented at a similar ceremony as the Nobel prizes.
And the winner is …Finbar Taggit … [Editor: In your dreams]
HEDGE FUND MANAGER PLEADS GUILTY TO FRAUD CHARGE
Gregory Bell, founder of Lancelot Investment Management, was accused of feeding client assets to a fraud scheme run by a Minnesota businessman, Thomas Petters.
I know we did this yesterday, but I forget to mention the company name – Lancelot. Sounds like a porn star …
LEHMAN ADMINISTRATORS ASK TO PAY BROKERAGE CLIENTS $3.3 BILLION
PricewaterhouseCoopers LLP asked the High Court in London at hearings scheduled to conclude today to determine how it should distribute securities, redemption proceeds, dividends and interest payments that have accumulated since Lehman’s September 2008 bankruptcy. The administrators have legal duties to the prime brokerage clients, most of which are hedge funds, PwC’s lawyer, William Trower, said in a court filing.
PWC are truly parasites of the worst nature. They are my new bete noir, my new hate figures. Private Equity jockeys were the scum of 2007, the CRA’s in 2008, and PWC are the new anti-christ (or is that anti-Mohammed) of 2009.
‘MENACE OF MAYFAIR’ JEWELLER DUPED VICTIMS OUT OF FAMILY HEIRLOOMS
Personally, I like to be known as the “Russell Brand of Mayfair”
REGULATORS CRITICISE ‘UNWORKABLE’ EU PLANS FOR HEDGE FUND REFORM
“I hope they will come forward with something more balanced,” he said. “It really doesn’t work. They have pooled everything together, the scope is absolutely too wide, everything is caught.”
Recent research from trade body AIMA showed that the hedge fund and private equity industries contribute £7.9bn in tax to the coffers of EU governments each year – including £5.3bn to the UK Government alone.
Please see my twitters at the last FSA conference for my comments which are broadly exactly the same.