All GLG News Analyses Filed Under: Asset Management & Private Banking
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
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Mark MariottiChief Executive OfficerFuture Management Holdings Inc
Capital Without Representation
June 30, 2009
Green groups to sue over RBS investments | www.ft.com
Very tricky investing when it comes to buying stock which can be revalued by the adjustment of the underlying security asset. Buying stock in a bank holding company is similar to buying options. Various issues develop from the government nationalization of previously held assets by the private sector. Obviously the first issue is the principal stripping (inevitable price valuation destruction), and the second issue is becoming; which controls are available to the existing private sector holders (those in at the beginning) and those new government (government of the people by the people) holders.
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Hedge Funds' response to proposed EU regulation
June 26, 2009
Hedge funds to take on Europe | business.timesonline.co.uk
The proposed EU Alternative Investments ("AI") Directive is wide ranging. Market participants need to consider what the EU is seeking to achieve. There is also a need to reflect on the part played by certain types of AI in the financial crisis. AI providers also need to think on the possible commercial benefits of EU regulation. Previous versions of this in mainstream mutual funds, ie the UCITS Directives, have been of massive benefit to fund promoters in distributing products globally, not just within the EU.
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June 23, 2009
Reluctant hedge fund managers eye M&A deals | uk.reuters.com
Hedge Funds are not an asset class, they are a talent pool. It is rare for independent Hedge Fund managers to integrate successfully into larger firms. While large operators and M&A bankers are keen to see increased transaction flow and Hedge Fund mergers, the eclectic investment management culture of hedge funds does not lend itself to the transactional mindset. In other words, it is hard to tame the shrewd!
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June 23, 2009
Reluctant hedge fund managers eye M&A deals | uk.reuters.com
It is too early right now for the Industry to be considering profit accretive deals. Most deals would continue to be vehicles of opportunity for the safer companies to enter aggressive markets with beaten competitors Man Group (EMG.L) and RAB Capital (RAB.L) have both indicated they are in the market for smaller hedge funds, while Cheyne Capital and GLG (GLG.N) have separately announced deals in recent months It seems likely as commented on my blog( http://tr.im/hedges) that these hedge funds have to follow suit because as TARP capital gets returned there is a chance that one may miss the next bull run and with higher TCEs for banks it is better that the underperforming hedge fund industry consolidate itself to grow themselves in size and compete.
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UBS can use the money terms to negotiate with govt
June 16, 2009
UBS Said to Be in Talks About Repaying Swiss State Investment | www.bloomberg.com
US banks have already raised $75 billion after the stress tests by the administration pointed out requirements for common equity to be strengthened you can read the link here http://tr.im/exitrap (my blog) The market for funds is easy for banks now as the MTM scare for illiquid mortgage secs has been lifted by the temporary govt funds infusion and these funds can be returned. Therefore also to be competitive UBS must return the govt funds. All terms and conditions are not clear for UBS but givt would still not have given money wthout some restrictions and thus UBS credit lines from the market will suffer unless it participated in the return of money festival. Dirk is right, Govt money will also be a constraint in attracting talent esp as many people from Citi, Barclays will be available and this is a good opportunity for UBS
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Repaying debt - a sing of strength, or a sign of weakness?
June 15, 2009
UBS Said to Be in Talks About Repaying Swiss State Investment | www.bloomberg.com
1. UBS' stock price has declined significantly in the past two years - a further sale of yet more stock will put additional pressure on share prices. 2. With core capital at approximately 10% (4% lower than it's comparable peer - Credit Suisse), UBS might be hoping that a market rally will buoy the common stock portion of their core capital more than the less liquid governmental preferred shares. 3.Are they looking to repay for issues relating to their peers (JPMC, MS, AXP repaying) or because there are worse risks if their stock price falls below the Swiss government's break-even point at approximately 12.5 CHF?
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Effects of the Chinese Stimulus Package Part 1
June 15, 2009
Concerns About Cost of China's Stimulus Grow | online.wsj.com
Chinese stimulus package has been funded by massive amounts of loans by state banks to local governments and state owned enterprises. While it will be successful in stimulating short term demand for commodities, it will eventually result in large amounts of bad loans and over capacity. It has favored inefficient sectors of the economy and will not be effective in stimulating employment. The state owned banks, which have not been able to get rid of toxic assets from the last recession, are most likely under capitalized.
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Emerging Market Investing: Sources of Volitility and Probability of a Bubble
May 29, 2009
China's dubious earnings numbers: Red flags | www.economist.com
Recent books and papers have confirmed my analysis that information about investments in emerging markets does not accurately reflect the true financial status of companies. Investors in these markets tend to ignore information and invest for alternative motives. The result is increased volatility potentially resulting in the creation of another bubble.
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Harnath SithamrajuConsultantHarnath Sithamraju
Continuity and Stability says Good Buy
May 25, 2009
Indea Capital Hedge Fund Plans to Buy, Not `Panic,' on India Poll Results | www.bloomberg.com
India gets a stable Government after elections contrary to predictions.
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James McMahonPresidentJM Bear Advisors
Institutional Investor Flee's From Bank Of America. Will Others Follow ??
May 25, 2009
Temasek dumps 3.8% Bank of America stake | business.timesonline.co.uk
Is the trend of institutional investors leaving BoA as well as well as other larger FI's tell a story of things to come? What is the motivation behind these moves? A lack of faith in BoA strategies ? Concerns about capitol? Are more loan losses that are still predicted to come in the 2nd through 4th quarter helping to squash a continued rally?
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