Macquarie teases LSE with £1.5bn bid 8 Dec 2005 The Australian bank must know it won t win the recommendation it needs from the stock exchange board at this price. Perhaps that's the plan. After all, a rejection will give Macquarie the pretext for an elegant withdrawal.
Investment bankers don’t gobble up all the profits 2 Dec 2005 It s a widely held belief that employees of investment banks pay themselves generously, leaving few scraps for their shareholders. But based on accrued compensation this year, that s not the case for Wall Street s leaders Goldman and Lehman. It s only true for laggards.
NYSE’s Thain has much still to prove 2 Dec 2005 The NYSE boss didn t show a deft political touch in putting together what otherwise looks like a smart transaction the Archipelago merger. To deal with its Goldmanrelated outcry, he made many promises to constituents. The implied share price is now very high.
Janus is too pricey for a buyout 1 Dec 2005 The growthstock fund manager has reportedly considered a management buyout. But at the mooted MBO price of $17 a share below the current $19 stock price the deal would be a financial stretch for private equity.
Lazard nabs controversial role advising Icahn 30 Nov 2005 The firm is advising the billionaire investor on his options for kickstarting Time Warner s lacklustre stock price. This is a risky move. Lazard boss Wasserstein advised on the illfated AOL deal. But its fee structure may set a beneficial precedent for shareholders.
Greater fools support buyout recap boom 29 Nov 2005 The vogue for recaps looks daft from the lenders perspective. They are taking more risk, and being paid less for it. But lenders aren t dumb. They ll lend so long as the secondary market will buy the risk.
Equity rally reflects poor alternatives 24 Nov 2005 European stock markets are rallying because bonds are fundamentally unattractive. That may give investors a negative reason to buy shares. But is there a positive one? It s not obvious that there is.
Can hedge funds save the retail investor? 23 Nov 2005 The public is used to paying high fees for closettracking, underperforming mutual funds. Mutual funds with hedge fundlike strategies won t mimic the index. But they come with still higher fees.
Man Group equity issue signals more M&A 17 Nov 2005 The hedge fund group is a master at shortterm trading placing shares at a 20% premium to where it was buying them back a few months ago. Having bought Refco s regulated assets, Man s tail is up. Hedge funds looking to sell themselves should put in a call.
Boom in US exchange values set to continue 16 Nov 2005 The Intercontinental Exchange's IPO valued the energy marketplace at more than 45 times earnings. Despite the Refco scandal, product innovation, the surge in derivative trading and the growth of hedge funds should support valuations.
Citigroup yields to closed-end fund rebels 16 Nov 2005 The bank will convert its $1.5bn Salomon Brothers Fund to mutual status at NAV, potentially reducing its value when sold to Legg Mason. But it s a small price for Citi to pay, seeing as the hedge funds could have saddled it with the funds and a public brawl indefinitely.
Two cheers for Man Group’s Refco purchase 10 Nov 2005 The hedge fund provider is the natural winner for the assets. Its futuresbroking subsidiary gives it more synergies than other bidders. But the riskiness of the target is a reminder of Man s desperation to diversify its business away from hedge funds.
Can a $100bn hedge fund beat the market? 4 Nov 2005 The dismal recent performance of Fidelity s Magellan Fund suggests that size damages investment returns. However, quantitative hedge fund manager Jim Simons believes his new computerdriven fund can handle $100bn and still beat the index.
Sovereign’s board failed shareholders 2 Nov 2005 The US bank s directors shamefully neglected their fiduciary obligations to shareholders when they voted in favour of the Santander deal. Could it be they had interests to protect other than those of investors? That looks to be the case for at least two longstanding directors.
Janus should sell itself 2 Nov 2005 The US growth fund manager is struggling to be more than a onetrick pony. But given the problems it faces in diversifying the better option for shareholders would be a takeover.
Hedge funds succumb to the cult of the salesman 31 Oct 2005 The creation of a new central exchange for equity salesmen s tips is the latest evidence of hedge funds appetite for trading ideas. Investors should ask whether managers are adding value to the information or just cribbing it.
Jumbo buyout funds offer poor prospects for investors 29 Oct 2005 Buyout funds are getting larger despite the fact that there is an inverse relationship between fund size and investment returns. With interest rates rising and investor appetite for junk bonds waning, Blackstone s record new fund signals the turning for the LBO market.
Hedge funds need conclusion to trading probe 27 Oct 2005 Regulators have spent over a year examining whether hedge funds wrongly used information provided in the premarketing of convertibles. The market needs guidance on this issue. Regulators need to pursue these investigations faster.
Italy should open its bond markets 27 Oct 2005 Icap, the UK broker, is moving closer to establishing a market for Italian sovereign debt to rival local exchange MTS. After the Antonveneta debacle, Italy has a second chance to show it will treat foreign entrants into its financial services markets fairly.
Judge Drain right to sink Flowers’ Refco bid 25 Oct 2005 Flowers may have thought he could snap the bust firm's assets up on the cheap by moving fast and using his connections. But with other bidders ready to act swiftly and seemingly pay more, the bankruptcy court was right to strike down Flowers' sweetheart deal.