Finance » FinTag http://seriouslyfinance.com real-time discovery by s.erious.ly Thu, 09 Sep 2010 07:17:42 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 THE FINTAG NEWSLETTER @ 21 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/ej2FsegRhm8/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/ej2FsegRhm8/#comments Sun, 21 Feb 2010 04:10:39 +0000 Finbar Taggit

FINTAG COMMENT


Begging bowl.

So the UK's debt is a few billion off the budgeted forecast. Like the USA, the UK has its largest ever debt since the Second World War when there was a good reason for a large amount of debt - War. This time around, the reason for the debt is ...Investment Banking. So we defeated Hitler and a potential world of horror, spent decades paying off the loans for these loans to reappear because a few bankers needed to continue their lifestyles.

Seems rather bizarre, doesn't it?

But not as bizarre as the Galleon sheep who are ripping out its hedge fund with panic like zeal. It looks like the fund will be forced into liquidation and this always results in less for those who stand last and I am surprised Galleon hasn't just gated the fund. Even so, when panic sets in, panic sets in. Has anyone checked out who these investors are? I got a sneak preview from a disgruntled to be out of work Galleoner and hey presto, a few of these also had Madoff exposure. Bad luck seems to follow those who are useless.

Benality
A few days ago I tried to tweet the 5 billionth tweet. I was close but not close enough. I must try harder:

http://twitter.com/fintag/status/4999882493

U.S. STOCK FUTURES POINT TO SECOND STRAIGHT DIP


market watch

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the U.S. equity rally from the lows of March can continue. He sees nominal GDP rising and unit labor costs declining next year.

"If we're right, the spread between sales and cost growth next year should be nearly six percentage points, which is consistent with S&P earnings rising by around 25%," he said. That would put the S&P 500 on a forward earnings multiple of about 14.2%.

"On that basis, it is hard to argue that U.S. equities are overvalued."

Fintag says
Hey Presto. The world is over valued.

GALLEON STAFF EYE EXITS


deal book

Dozens of employees at Galleon Group are hunting for new jobs as investors debate how to react after the hedge fund's founder was arrested and charged with running one of the biggest insider trading schemes, Reuters reported.

For years, Galleon prided itself on hiring only the best in the technology and healthcare industry — top-notch analysts and portfolio managers boasting Ivy League degrees and stints at Goldman Sachs and Needham & Company.

Fintag says
Ship. Rats. Jumping.

wall street journal says "Rakoff Gets Galleon Case And Will Bharara Become the Great Preetinder? "

Mind you seems ironic that Australia, the world's only booming economy has a Sri Lankan boat problem. Given Galleon owned a lot of the SL stock market, we may see a few more immigrants looking for new homes.

KING CALLS FOR BREAK-UP OF BANKS


financial times

Mervyn King, governor of the Bank of England, called on Tuesday night for banks to be split into separate utility companies and risky ventures, saying it was “a delusion” to think tougher regulation would prevent future financial crises.

The economic crisis has prompted governments across the world to re-evaluate their financial regulatory frameworks

Mr King's call for a break-up of banks to prevent them becoming “too important to fail” puts him sharply at odds with the direction of domestic and international banking reform.

The Treasury and the Financial Services Authority have specifically rejected the idea of spliting up the banks, while the Conservatives think action in Britain alone along these lines would not be feasible.

Fintag says
Looks like King is prepping himself for the job of top regulator once the FSA is binned. His statements are so obvious and a sentiment we have been espousing for years. Glass Steagall 2.0. Alternatively GS 2.0. Spooky.
]]> http://seriouslyfinance.com/2010/02/20/21/10/39/the-fintag-newsletter-21-october-2009/feed/ 0 THE FINTAG NEWSLETTER @ 22 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/iZu7947uU8c/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/iZu7947uU8c/#comments Sun, 21 Feb 2010 04:08:37 +0000 Finbar Taggit

FINTAG COMMENT


Black armband day.

So Goldman, JPM et al who were saved from bankruptcy have lobbied Obama to avoid comp caps and instead thrown BoA, ML and AIG into a cesspit where country club membership will be banned and a few top earners will not get paid. Savings? I reckon less than 100m. Pathetic.

I am therefore on strike. ]]> http://seriouslyfinance.com/2010/02/20/21/08/37/the-fintag-newsletter-22-october-2009/feed/ 0 THE FINTAG NEWSLETTER @ 09 November 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/kfL4Wd9kTmE/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/kfL4Wd9kTmE/#comments Sun, 21 Feb 2010 04:06:37 +0000 Finbar Taggit superdry

FINTAG COMMENT


Now where was I.

Bullionvault.com is the new retail haven of safety ....RBS should have gone the way of Lehman ...EU Directive is pants and whoops of whooping are heard all over Mayfair ...Hedgies are on the streets fighting over Lehman cash ...

FINANCIAL NEWS


financial news

New international guidelines on the way investment banks pay their staff could prove to be “unworkable” and are unlikely to lead to the level playing field for compensation across the industry that regulators are hoping to create, according to industry professionals and consultants.

Fintag says
Income and Pricing policies were big in the 1970s but soon abandoned because controlling wages doesn't work.

The ultimate problem is the banks are too big. They need to be broken up and regulated pre Clinton.

It is very obvious.

cityam says " No to Tobin "

times says " I'm doing 'God's work'. Meet Mr Goldman Sachs "

BAD CREDIT CARD DEBTS 'WILL SOAR'


bbc

Bad credit card debts may reach as much as 9% of all outstanding balances by the end of next year, an accountancy firm has said.

"Bad debts in the sector have reached historic highs," according to PricewaterhouseCoopers. The figure stands at about 6% now.

This is despite the fact that there has been a "cooling passion" for credit cards, with borrowing down 3% to £64bn.

Fintag says
Low rates mean this isn't going to be a big problem. I thought it would be; it isn't.

CITI SAID TO EYE RELAUNCH OF HEDGE FUND UNIT


dealbook

Citigroup is preparing to relaunch its hedge fund business operations, after months of debate on the unit's future, The Financial Times reported.

The move comes after two years of performance problems and investor unrest at the unit, Citi Alternative Investments. Now, it seems, the only problem facing Citigroup executives is what to name the unit, which has $14 billion of assets under management.

Fintag says
Pandit only knows hedge funds. Makes sense.



]]> http://seriouslyfinance.com/2010/02/20/21/06/37/the-fintag-newsletter-09-november-2009/feed/ 0 THE FINTAG NEWSLETTER @ 10 November 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/aivTn4ioUUI/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/aivTn4ioUUI/#comments Sun, 21 Feb 2010 04:04:35 +0000 Finbar Taggit NOMOS

FINTAG COMMENT


Read it before Murdoch takes it away.

Soon only the rich will be able to buy internet news ...nomos capital suffers from dirty old man syndrome ...bear sterarns (gordon brown spelling) verdict is imminent ...guilty all round ...barclays make profits thanks to the arabs ...dow is on an up ...USA unemployment is the highest in a lifetime ...conscription and national service is back on the agenda ...shoplifting in the UK is the new black ...gold is the new oil

LAPDANCERS, CALL GIRLS AND THE 'HUMILIATED DUMB BLONDE' SUING HER CITY BOSS FOR £4M


daily mail

A blonde executive who claims she was hounded from her job by a hedge fund boss who openly used prostitutes and made her visit strip clubs is suing him for £4million.

Jordan Wimmer, 29, felt 'completely soiled' after Mark Lowe, 55, made a string of degrading jokes about blondes and brought high-class escorts to business meetings.


Fintag says
NOMOS has always recruited attractive young things and now we know why. I wonder who Fintag's Angels are ...

JURY OUT IN HEDGE FUND TRIAL


telegraph

After a month of complex legal arguments, the eight man and four woman jury in the trial of Ralph Cioffi and Matthew Tannin are now considering their verdicts.

The pair - both former senior hedge fund managers at Bear Stearns - are accused of a number of counts of securities fraud, wire fraud and conspiracy in relation to the funds' collapse, with Mr Cioffi also facing a charge of insider trading. Both men, who face maximum sentences of 20 years if convicted, deny all charges.

Fintag says
They were stupid, they weren't crooks. However given Investment Bankers are the equivalent of Nazi war criminals they will get long sentences.

times says " Hedge funds should be encouraged to launch in UK "


]]> http://seriouslyfinance.com/2010/02/20/21/04/35/the-fintag-newsletter-10-november-2009/feed/ 0 THE FINTAG NEWSLETTER @ 11 November 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/9pAyfGsCngM/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/9pAyfGsCngM/#comments Sun, 21 Feb 2010 04:02:34 +0000 Finbar Taggit 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.



]]> http://seriouslyfinance.com/2010/02/20/21/02/34/the-fintag-newsletter-11-november-2009/feed/ 0 THE FINTAG NEWSLETTER @ 20 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/LOc0B9CW-J0/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/LOc0B9CW-J0/#comments Tue, 20 Oct 2009 05:07:28 +0000 Finbar Taggit

FINTAG COMMENT


Pop.

Funny how the people I talk to are waiting for the big pop. And yet they are piling into the markets because they believe it has some way to go before the big bang 2.0.

Many commentators have gotten bored about debt, protectionism, Bernanke china bashing, export crazy Asians and living off bread and water and aren't discussing it anymore. Most markets are fundamentally overvalued because the huge wall of cash that is rushing around like a tsunami on speed is looking for returns that are safe and known. When demand exceeds supply prices go up but that doesn't mean that the underlying asset bought is worth the price paid. But hey, who cares. Rising markets give us optimism and keeps people employed and only a deluded bear sucking moron would dare predict a crash.

Thankfully this one has already tried and had to readjust but given I am no longer actively trading, I am pouring everything into commodities. Why? Why not? When the pop pops, those with real stuff will win out. Be warned.

In the meantime, 3 cheers to Apple! We all love your products even if they fall to pieces after 1 year less 1 day. My Macbook of the same age has a bust cd drive, two stuck keys and a screen that has vertical lines going down it.

U.S. SAID TO TARGET WAVE OF INSIDER-TRADING NETWORKS


bloomberg

Federal investigators are gearing up to file charges against a wider array of insider-trading networks, some linked to the criminal case against billionaire hedge-fund manager Raj Rajaratnam that shook Wall Street last week, people familiar with the matter said.

The pending crackdown, based on at least two years of investigation, targets securities professionals including hedge- fund managers, lawyers and other Wall Street players, the people said, declining to be identified because the cases aren't public. Some probes, like the one focused on Rajaratnam, rely on wiretaps. Others stem from a secret Securities and Exchange Commission data-mining project set up to pinpoint clusters of people who make similar well-timed stock investments.

Fintag says
If only the UK's FSA could take a leaf out of the SEC book given regulation doesn't work anymore. Britain's own Jabre the Crook was long gone before the sleepy FSA prosecuted him and the small spate of low life insider trading has been pathetic. Of course I used to keep a "Rumors" policy document (as required by the FSA) and this stopped my traders from carrying 3 mobile phones and visiting websites using vtunnel.com and using PGP encryption for their emails.

HEDGE FUND LEGEND ROBERTSON LIKES PLASTIC NOT GOLD


reuters

Hedge fund pioneer Julian Robertson, whose Tiger Management once oversaw $22 billion in assets, told a conference of money managers on Monday he is bullish on credit card companies, but would steer clear of gold as an inflation hedge.

Speaking at the New York Value Investing Congress, a private event where hedge fund managers share trading ideas, Robertson reaffirmed his positive view on the shares of Visa Inc (V.N) and MasterCard Inc (MA.N), citing their growth potential.

Fintag says
For a moment I thought I was going to have start wearing those plastic wrist bands. I am sorry but I don't have the same view on plastic. While interest rates are low then this is fine but the CCC are hiking up rates. Default rates are going to rocket.

BRAZILIAN HEDGE FUNDS LURE $19.7 BILLION THIS YEAR


bloomberg

Brazilian hedge funds are luring more money than any type of investment pool in the country after record withdrawals last year, offering returns four times the yield from certificates of deposit.

Local hedge funds attracted a net 33.7 billion reais ($19.7 billion) this year through Oct. 15 after posting 54.6 billion reais in redemptions in 2008, preliminary data from the National Association of Investment Banks' Web site show. Third-quarter inflows surged to 36.3 billion reais, according to the data. The figures will be revised and re-published this week, said a spokesman for the association known as Anbid.

Fintag says
I am going to have to divert towards Brazil meez thinks asap. We all love an emerging market play when the west has run out of Alpha.

GOLDMAN SACHS MUST FAIL


here is the city

That's the message. In just one short year, Goldman Sachs has morphed from an organisation that was 'too big to fail' into one which is now 'too successful to exist'.

At a time when we should be celebrating that the world's largest financial institutions, vital to our own economic wellbeing, have come back from the brink, we are pointing the finger of blame at the likes of Goldman, and complaining about how successful they have become. And Goldman, of course, is being beat about the head for government interference it never wanted, and a bailout it never sought.

Fintag says
Word on the legal street is that by this time next year, GS will be a private partnership hedge fund manager.

SCHRODERS LAUNCHES UCITS PLATFORM WITH EGERTON FUND


hedge funds review

he platform, Schroder GAIA (Global Alternative Investor Access), will be run jointly by Schroders and its fund of hedge fund (FoHF) subsidiary NewFinance Capital.

NewFinance's business development manager Eric Bertrand said the platform had been in development since 2007.

Bertrand said GAIA would build on Schroders' existing expertise in Ucits funds but would open up hedge fund expertise to more investors.

Fintag says
I didn't know Schroders had any Hedge Fund business left. If you are a fund of funds in doubt, launch a UCITS platform (with a few cta managers only). That will revive your business.

BERNANKE WARNS ON IMBALANCE RISKS


financial times

Ben Bernanke said on Monday that it was “extraordinarily urgent” that the US and Asia adopt policies that prevent a revival of global economic imbalances as the financial crisis ebbs.

The Federal Reserve chairman warned that global imbalances - the big gaps between national saving, consumption and investment rates reflected in large trade deficits and surpluses - had helped cause the crisis and needed to be corrected.

Fintag says
Go on Benny. Nuke those Chinks ... [Editor: Is this your Jan Moir moment?]

This is truly an offensive speech. The man is deluded.




]]> http://seriouslyfinance.com/2009/10/19/22/07/28/the-fintag-newsletter-20-october-2009/feed/ 0 THE FINTAG NEWSLETTER @ 19 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/huaefV2pdrA/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/huaefV2pdrA/#comments Mon, 19 Oct 2009 00:36:15 +0000 Finbar Taggit

FINTAG COMMENT


Marriage.

Trading is like being married. It is a contract between an ego and a lifestyle that starts out on the right tracks but can often lead to a hatred of that Bloomberg or Reuters screen and turns into a nasty love hate scenario what-if denial depression. My divorce started at the beginning of this month and my first and only love has been sold on. I sold out and now my soul is selling out too.

My brain is struggling to cope. It is used to constant stimulation. News, market data, lunches and email avalanches. Today it is going to sleep and it is not pleasant. I have never slept more than 6 hours and I am losing an extra 2 hours a day to the sandman. This is not right. I am turning into a welfare addict, a human being who has no responsibility.

Roll on next year when I can get back into the game. Leisure is not what it is cracked up to be.

HEDGE FUNDS GAIN CLOUT ON CAPITOL HILL


deal book

Hedge fund managers appear to have a new degree of clout on Capitol Hill in shaping legislation that will determine how they will be regulated, according to The Boston Globe.

To gain that clout, industry leaders are using a congressman-turned-lobbyist, a major increase in campaign donations and a strategy that relies heavily on advancing their own reform ideas, making them active players in the legislative process and perhaps staving off more rigorous regulation measures.

Fintag says
Just like Investment Bankers, we have learned to lobby and lobby hard. If it involves lunches, then I am in.

DUE DILIGENCE KEY TO HEDGE FUND INVESTING


investment news

The losses of 2007 and 2008 in the [hedge]-fund-of-funds industry showed us that some funds of funds turned out not to be as diversified or non-correlated as they claimed and that some funds of funds were not performing the level of due diligence required to avoid the problems experienced by others. The events of 2007 and 2008 demonstrated that strategies that were supposed to be non-correlated were in fact correlated, and managers were exposed when the financial markets ceased to function. Trades were taking place, but not at rational levels. We believe that many funds of funds were not doing enough research into portfolio management, and as a result, their performance did not deliver the steady results they once provided. Remember, however, that one bad apple does not spoil a bunch, nor does it mean that the whole industry is spoiled. Quite the contrary; the funds-of-funds industry is alive and well, and thriving in the post-meltdown world. That's the beauty of what the hedge funds industry is all about.

Fintag says
Hasn't it always been? Well I guess Optimal, UBP, et al thought they knew what they were doing but as usual checking an AIMA DDQ is not really DD is it? DD is having a decent lunch and touching and feeling your hedgie.

A LOOK AT THE HEDGE FUND CHIEF ACCUSED OF FRAUD


dealbook

In 2004, Raj Rajaratnam started a charity for victims of the devastating tsunami that hit his native Sri Lanka. On Friday, Mr. Rajaratnam, a 52-year-old hedge fund manager, was caught in a storm of his own as one of six people charged by federal investigators in a $20 million insider trading scheme.

While he was born in Sri Lanka, Mr. Rajaratnam, founder of the hedge fund Galleon Group, studied engineering at the University of Sussex in England and earned a business degree from the Wharton School, University of Pennsylvania in 1983. He started his career as a lending officer in the technology group at Chase Manhattan Bank before becoming an electronic analyst at Needham & Company, the boutique investment bank.

Fintag says
I wonder how many others didn't carry out a proper DD on Galleon? Unfortunately Inside Trading is a tricky one to catch. My theory is to be wary of those with the letter "J" in their names. You know, Jabre, The Junk Bond King, Rajaratnam ....

CALIF. BANK BECOMES 99TH IN US TO BE SHUT IN 2009


yahoo

The Federal Deposit Insurance Corp. was appointed receiver of San Joaquin Bank, based in Bakersfield, Calif. It had $775 million in assets and $631 million in deposits as of Sept. 29.

The FDIC said Friday the bank's deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.

Fintag says
Some banks are just too small to survive. Big is best. We all want monopolies and banks with large middle fingers.

EU HEDGIE BILL TO COST £2.9BN


city am

EUROPEAN UNION plans to crack down on hedge funds and private equity houses could cost the industries as much as €3.2bn (£2.9bn), according to the first official report into the directive.

The study, conducted by Charles River Associates for City watchdog the FSA, also said the affected firms would be hit with annual costs of around €311m.

The EU is planning to force fund managers to sign up to a costly registration and disclosure regime, and to adhere to caps on leverage.

Fintag says
We are not worried. Its your Private Equity and Real Estate girls and boys who are worried. What is the point? Yes, to create jobs in Ireland and Malta at the expense of London and hit Investors with more costs. Not that the FSA are bothered - its more regulation work for them.




]]> http://seriouslyfinance.com/2009/10/18/17/36/15/the-fintag-newsletter-19-october-2009/feed/ 0 THE FINTAG NEWSLETTER @ 15 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/q5G5u2rl_7g/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/q5G5u2rl_7g/#comments Thu, 15 Oct 2009 14:27:27 +0000 Finbar Taggit

FINTAG COMMENT


Back to ordering the last wine on the list.

Why the media is so surprised at the latest stellar profits from the Investment Banks is rather bizarre. Any company that can offload its bad debts and get a decent fair value as well as pushing its hard to price illiquid assets into off balance hedge funds (I mean Goldman have been doing this for years) despite socialist regulators capping their remuneration policies and restricting their business practices by demanding a strong balance sheet, could not do anything but make profit is madness.

Risk is about mitigation. When the mitigation is a government, taking large risk becomes a no brainer. We have all been duped because socialists are on the whole simple people and fighting against some of the smartest people on the planet is rather dumb.

Never in history has socialism benefited the rich at the expense of the poor. Actually, that is a complete lie. Socialism is a dictatorship and the selected few always benefit at the expense at the poor and stupid. Obama should get the Nobel Prize for Being a Pratt.

Of course this is all good news for luxury product providers and despite down sizing my demands on my current soft marketing trip, it is clear that from hotels to night clubs, the Incompetent Bankers are back.

Except they are no longer Incompetent but Incredible. The Incredible Bankers are back. Except Bruce W who never got to retire. I never met the guy but he seemed to be a smooth operator. Maybe he passed away because he too couldn't believe what was happening to Investment Banking?

GOLDMAN NET BEATS ESTIMATES ON TRADING, INVESTMENTS


bloomberg

Goldman Sachs Group Inc., the most profitable securities firm in Wall Street history, reported third-quarter earnings that exceeded analysts' estimates on trading gains and investments with the company's own money.

Net income more than doubled to $3.19 billion, or $5.25 per share, in the three months ended Sept. 25, from $845 million, or $1.81 a share, in last year's third quarter, the New York-based company said today in a statement. The average estimate of 22 analysts surveyed by Bloomberg was for $4.18 a share, with forecasts ranging from $3.48 to $4.75.

Fintag says
Of course this is wonderful news for all of us involved in Financial Services. A bit like the Airline Industry being propped up by Governments of old, where all the side industries were indirectly subsized by the tax payer, Hedge Funds and the like have to embrace this new socialism because it benefits us as much as the banks. The fact all these short term wins are at the benefit of the next generation, who gives a hoot?

There was a time when protectionism was frowned upon but in todays collaborative market place, the banks are the first industry in the world to be protected by all countries.

Socialists protecting Capitalists.

If you look carfeully, it is the same old same. Fixed Income bond issuances based on crap underlyings. Subprime 2.0 lives on.

LIGHTS DIM FOR AMERICAN BANKS IN LONDON, BUT RIVALS RUSH TO FILL THE GAP


telegraph

An American downgrade of London leaves a gap, which others are rushing to fill. Compared to their US rivals, Barclays, Credit Suisse and Deutsche Bank have more international management teams but each has to struggle to gain market share from US firms. Japanese Nomura did it in one big move, by taking over the European operations of Lehman Brothers.

By the time US banks are ready to rediscover their Anglophile tendencies, it will be much harder to rush back in.

Fintag says
Tax.

EU: BRITAIN IS AT HIGH RISK OF GOING BUST


this is money

Britain's economy was consigned to an EU list of those at 'high risk' yesterday because of the spiralling national debt.

The European Commission issued a humiliating warning that the worsening budget deficit poses 'serious concerns' that the country will be unable to meet future spending commitments, such as pensions.

Fintag says
The UK set the agenda and it ends going bust while the US rides high. Don't you get the feeling you have been conned?

DAMIEN HIRST PLUMMETS DOWN ART WORLD POWER LIST


times

The day after suffering the most brutal critical pasting of his career, Damien Hirst woke up today to discover that he is no longer considered one of the real movers and shakers in contemporary art.

Last year, after capping a long line of pickled sharks and sheep with a £50 million diamon-encrusted skull, Hirst was ranked No 1 by the influential ArtReview magazine in its annual Power 100 list, which is released to coincide with the Frieze Art Fair in London.

Fintag says
So where is his bailout?


]]> http://seriouslyfinance.com/2009/10/15/07/27/27/the-fintag-newsletter-15-october-2009/feed/ 0 THE FINTAG NEWSLETTER @ 14 October 2009http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/byIiM9p9T-M/ http://feedproxy.google.com/~r/Fintag-HedgeFundNewsViewsOpinionsAndGossip/~3/byIiM9p9T-M/#comments Wed, 14 Oct 2009 06:44:13 +0000 Finbar Taggit

FINTAG COMMENT


Disenchanted.

Spending all day and night grinding my teeth to the sound of the opening and closing bells takes its toll. I have been so selfish and focused on nothing but performance for the past few years. Performance on the race track, performance of my funds, performance of my cars, performance in nocturnal activities. It is all about being better, faster and cleverer than the rest. Now the rest are running the race while I take it easy in the pit stop, I am getting closer to the real world where performance doesn't seem to feature very much.

The problem is I don't like what I see. 99% of the world is populated by, as Aldous Huxley once cited, semi-morons. Sometimes I wish I was as thick as manure for life would be easier. My complaint today is my once trusted personal assistant has a new boss and I am pa-less. It is a shocking state of affairs.

My luggage exceeded 23 KG by 1 KG and I didn't know what to do. A call to my PA and she would normal sort this sort of stuff out but alas she is no loner there so I had to take some initiative. This involved removing a pair of trusty shoes and putting them in my hand luggage. Well that is not true because my leather tumi tote was packed full so I tied the laces together and hung the shoes around my neck.

When I got on the plane they tried to push me into economy so I waved my First Class boarding card and only then was I treated as a human being and escorted to my cubicle. And that is where I am now. Up in the sky.

Spread Betting
Following an exclusive interview in a German magazine with a 100,000 circulation, some rather cruel commentators who scrutinized the photographs of me in various model like poses, said I had a beer belly. I can assure you, and my personal trainer will testify too, that my stomach is so tight that dust settles in the groves. So there.

AS SUN SETS ON 2009, ARE INVESTORS BACK IN LOVE WITH HEDGE FUNDS?


all about alpha

Today, we learned of a recent survey of institutional investors that found just that. According to Preqin (see other interesting research from this rather prolific organization) over half of institutional investors surveyed said they invested in hedge funds for diversification purposes. The runner-up reason was “to improve the risk/return profile” of their portfolio” - another reference to the diversification properties of hedge funds.

Curiously, the survey also found that investors are now far more concerned about all issues except fund performance. This time last year, over half said that the performance record was a “key consideration when choosing a hedge fund manager.” This year, the number has fallen to a third.

Fintag says
We are always loveable, even those who are retired or between hedge funds.

HEDGE FUND COUPLAND CARDIFF ASSET MANAGEMENT THREATENS TO QUIT LONDON OVER EU'S DIRECTIVE ON ALTERNATIVE INVESTMENT FUND MANAGERS


telegraph

Coupland Cardiff Asset Management, a $300m (£190m) Asia-focused hedge fund, will quit its London base to set up outside Europe if the Directive on Alternative Investment Fund Managers (AIFM) goes ahead as planned.

Fintag says
There are about 30 to 40 large managers, according to my sources at Simmons & Simmons, who are preparing to leave. Does anyone care? Well those who are employed do as they are likely to lose their jobs and the taxes will be paid elsewhere.

finalternatives says " Hedge Fund Hiring Bounces Back "

bloomberg says " Hedge Funds Headed for Best Year Since 2003, Eurekahedge Says "

HEDGE FUNDS 'MISREPRESENT FACTS'


ft alphaville

One in five hedge fund managers misrepresents their fund or its performance to investors during formal due diligence, according to New York University's Stern School of Business. Using confidential data taken from 444 due diligence reports commissioned by investors between 2003 and 2008, Stern academics analysed hedge fund managers' representations and identified “noted verification problems”, characterised as “misrepresentations or inconsistencies”, in 42% of due diligence reports.

Fintag says
And I bet most of these don't have independent Administrators are so are wholly based in the USA. Given 10o% of the banks lie about their balance sheets. 20% is a good result indeed. Mind you, taking this from a DDQ is a bit silly really. DDQs are soft marketing material mostly.







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FINTAG COMMENT


Flying high.

The problem with luxury is it wears thin pretty quickly. It soon becomes a real hindrance as it is supposedly meant to be the best but it never is. Once you find yourself flying First Class you demand the best seat (having checked out seatguru of course), complain about the films available and more importantly the poor service provided by the crew. This is why flying at the back of the plane is better; one's expectations are always so low that if you are given a decent seat and a nice person next to you, the experience can be uplifting and rewarding and you haven't paid the price of a VW Golf.

However, despite attempts to wean myself off this luxury fix, I flew First again yesterday. I was very disappointed. Really low. The reason? It was empty. Literally no-one in there except someone given an upgrade who I complained about and had them demoted (I didn't like his loud voice). It is like having millions in the bank but not having anything to spend it on or show off too. It is a cliche, the man who has everything but it is also a lie because the more you have the worse it is.

So where am I? Who knows and who cares. The hotel sheets are almost perfect, the gadgets all very new and the internet connection is fast. Spotify works without adverts and I have developed a six pack after watching a 10 minute exercise segment on the wall size LED TV. The fridge is laden with undrunk booze and everything is in place.

The go live for FabTent Capital is Feb 2010 and it seems such a long way. All this soft marketing is so tiring. What is your track record? Why did you leave the company you founded? Do you still have your mojo?

Today my mojo is lost in the room safe and I have forgotten the combination.

Jetlag Fun
For those who like a bit of German, you can read about me in business punk. I think. I see Richard Branson has displaced me on the cover. I mean who is this guy? He has a beard for cripes sake ...

PROPERTY IS FLAVOUR OF THE MONTH IN HONG KONG'S IPO MARKET


finance asia

Four Chinese real estate companies start pre-marketing, undeterred by the struggles faced by three recent property IPOs.

A wave of initial public offerings from Chinese property firms is set to hit Hong Kong over the coming weeks. With at least four Chinese property developers currently at the pre-marketing stage, one might think that the three most recent listings in the sector had sailed through. In reality, though, the IPOs for China South City Holdings, Glorious Property Holdings, and Powerlong Real Estate Holdings were all plagued either by a lack of investor demand or by poor secondary market performance.

Fintag says
I have looked out of the window. It looks like Hong Kong outside. Or is it Switzerland?



RATE HORIZON LOWERS AS INFLATION FALLS TO 1.1%


this is money

The rate of consumer price inflation fell further than expected in September as the UK economy struggled to emerge from recession.

Official figures from the Office for National Statistics today showed that consumer prices index (CPI) inflation fell to 1.1% in September from 1.6% in August.

Analysts had expected a fall to 1.2-1.3%, and it is the only month this year except April that the CPI figure has undershot expectations.

Fintag says
Deflation is a bit like depression ...it just sneaks up on you.

AROS CAPITAL PARTNERS OFFERS ONSHORE FUND OUTSIDE UCITS STRUCTURE


hedge funds review

Both the fund vehicles and management company are domiciled in the European Union, making it a complete onshore hedge fund structure but not constrained by Ucits III. The structure has gained the approval of three regulators - teak Financial Services Authority (FSA) regulating the sub-adviser, the Maltese Financial Services Authority (MFSA) which regulates the investment fund and manager and the Danish regulator (Finanstilsynet).

The founding team behind the company consists of Nicolai Borcher Hansen, Peter Brink Madsen, Christian Falster and Jacob Madsen. Three of the founders recently broke away from Denmark's largest privately owned asset manager, Formuepleje.

Fintag says
Malta? Is that where I am? I never thought Malta would become an onshore fund destination. The island that likes to say yes to everything ...

BANKERS WILL FOLLOW HEDGE FUNDS TO SWITZERLAND


bloomberg

Geneva? Zurich? Perhaps even Zug, Switzerland? Between deciding whether to be long or short of the dollar, or pondering whether we are in the middle of a bear rally or a new bull market, London's hedge funds also need to decide which Swiss canton they want to move to.

A new top income-tax rate of 50 percent, coupled with heavy-handed regulations planned by the European Union, are prompting the funds to quit the British capital for somewhere more sympathetic to their hypercompetitive brand of capitalism.

Fintag says
Despite UBS almost killing off Switzerland, it seems to have recovered quickly. Perhaps I am here.


BEAR STEARNS EX-MANAGERS ON TRIAL


bbc

The trial of two former managers at investment bank Bear Stearns on fraud charges opens in New York on Tuesday.

Ralph Cioffi and Matthew Tannin, who managed two failed hedge funds that collapsed in June 2007, could be jailed for 20 years if convicted.

Fintag says
As much as I used to berate Bear Stearns, this is a really sad day. They borrowed too much and got caught out.



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