THE FINTAG NEWSLETTER @ 11 November 2009

Man In Prison

FINTAG COMMENT

Mohammed.

On the way up:
Gold
Managed Accounts
Goldman Sachs Body Guards
Dow
Hedge Fund AUM
Meetings with NOMOS

On the way down:
Fund of Hedge Funds
GBP (thanks to the CRA’s)
Windows 7
SEC litigation against hedgies

AVENUE WINS ON SIX FLAGS REVAMP PLAN

emii

Hedge fund manager, Avenue Capital Management, has succeeded in getting Six Flags to submit a new reorganization plan, Reuters reports. Avenue’s bondholders had accused theme park operator’s management for transferring almost all its stock to senior lenders, including JPMorgan Chase, in return for cutting its debt.

Fintag says
Galleon …one flag …Bear Stearns …six flags

EX- BEAR STEARNS FUND MANAGERS CIOFFI AND TANNIN CLEARED IN BLOW FOR US GOVERNMENT

telegraph

The men who managed a pair of highly leveraged, sub-prime-laden hedge funds until their $1.4bn (£840m) collapse in June 2007, were found not guilty on all nine counts by a jury at Brooklyn’s federal courthouse.

The pair had been accused of misleading investors about the financial health of the two funds while privately admitting that they were in danger.

Between them the duo faced eight counts of securities fraud, wire fraud and conspiracy, with Mr Cioffi facing one separate count of insider trading. Each man faced up to 20 years in prison if convicted.

Fintag says
Yahoo! The jurors recognised these people as good ‘n’ honest hedgies and not greed tax lovin’ investment bankers.

bloomberg says ” Bear Managers’ Acquittal May Hamper U.S. Fraud Prosecutions “

GOLDMAN: OUR STAFF DESERVE EVERY PENNY

cityam

THE boss of Goldman Sachs yesterday defended the bank’s pay policies, insisting his staff were paid more because they were “among the most productive in the world”.

Lloyd Blankfein, Goldman’s chair and chief executive, also rejected calls to break up the bank and said the firm was easier to manage than its larger rivals.

“I often hear references to higher compensation at Goldman,” Blankfein told a banker’s conference in New York.

Fintag says
God demand’s only the best. A big thank you to AIG and the US taxpayer that Goldman can satisfy the big one’s demands.

DEUTSCHE BANK: HEDGE FUND ASSETS HEADED TO $2 TRILLION

finalternatives

Hedge funds could be back at $2 trillion by the end of next year, eclipsing their previous asset peak as investors return, Deutsche Bank’s prime brokerage chief predicted.

“We fully expect to see material inflows into 2010 and beyond,” Bary Bausano, global co-head of prime finance, told Bloomberg News. Hedge fund assets, which topped out near $2 trillion last summer, had dropped to just $1.3 trillion but the end of the first quarter of this year, battered by poor performance and an avalanche of redemptions. But the industry is back up to about $1.5 trillion, according to Hedge Fund Research.

Fintag says
We are back. Not that we went away.

new york times says ” Guilty Plea in Scheme to Defraud Hedge Fund “

market wire says ” Morgan Stanley, BNP Paribas Are Hedge Funds’ Top Brokers, According to Institutional Investor Survey “

HEDGE FUNDS SET FOR PARTIAL EU VICTORY

guardian

London-based hedge fund managers are set to secure a partial victory in their battle against tougher European controls on their industry.

A European Parliament committee working on the proposed directive will not impose limits on the amount that hedge funds and private equity firms can borrow to invest. Instead, it will give general guidance, leaving it to national regulators and the future pan-European supervisory body to intervene.

The measure will please the hedge fund industry in the UK, which has lobbied against any leverage limits as hedge funds typically borrow large amounts. The government, led by City minister Lord Myners, has also voiced concerns about the proposals as most European hedge funds and private equity firms are based in London.

Fintag says
God is looking after us hedgies too.

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