Tag Archive | "goldman sachs"

Analyst Brad Hintz Has A Very Sick Fantasy About Goldman Sachs

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When the Sanford Bernstein analyst closes his eyes, he pictures Lloyd and Co going out of their way to get on Carl Levin’s good side, possibly going so far as to praise his work.

“As politicians continue to criticize the firm and the public scrutiny persists, we believe that Goldman’s clients will begin to rethink their relationship with the firm and the franchise will ultimately suffer,” he wrote. “With approximately 17 percent of the ownership in the hands of current and former partners, this control group has ample motivation to make amends with politicians and the public in order to reduce the threat to its franchise.”

[Bloomberg]



Article courtesy of Dealbreaker

Executing Losing Trades For Libyans Put Goldman Sachs Execs At The Business End Of A Hissy Fit (Update)

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Zarti, reprising the role of Jake LaMotta

In early 2008, Libya’s sovereign-wealth fund controlled by Col. Moammar Gadhafi gave $1.3 billion to Goldman Sachs Group to sink into a currency bet and other complicated trades. The investments lost 98% of their value, internal Goldman documents show… In July 2008, Mustafa Zarti, the fund’s deputy chairman, summoned Mr. Kabbaj, Goldman’s North Africa chief, to a meeting with the fund’s legal and compliance staff, according to Libyan Investment Authority emails reviewed by the Journal. One person who attended the meeting says Mr. Zarti was “like a raging bull,” cursing and threatening Mr. Kabbaj and another Goldman employee. Goldman arranged for security to protect the employees until they left Libya the next day, according to people familiar with the matter.

Update: According to Lucas van Praag, the Libyans’ anger was misplaced:

Van Praag said the trades that resulted in a huge loss for Libya were designed and approved by the LIA and that Goldman was hired to execute the trades. He also said the Journal report doesn’t mention that in mid-2008, Goldman recommended restructuring the investments and asked the LIA if they wanted to discuss it. Van Praag said the LIA did not respond to Goldman’s query.

[WSJ]



Article courtesy of Dealbreaker

Financier Dares You To Bring A Woman Back To His “Trophy Pad” And Not Get Laid

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Something that apparently constitutes a ‘trophy pad’ to some people.

Over the holiday weekend, the Post ran an article about New York men who use their “luxury apartments to attract the ladies,” in which several dudes were interviewed about their abodes’ abilities to get them laid. One of them was well-known comedian Jim Norton, who was obviously fucking with the paper when he said stuff like:

“Women see windows — and skirts come off. This one businesswoman, she came over, and she said she was ‘not like the other girls,’ ” he recalls of the guest, who announced that she did not sleep with men on the first date. “Well, fast-forward an hour after seeing the apartment, and not only was she like the other girls, she was worse. They like the view…I remember another woman . . . I knew she was impressed with the place and decided to sleep with me. I gave a horrible [sexual] performance. She walked around the apartment a couple of times before she left — almost reminding herself that this is why she just put herself through that.”

Then there was “financier” John, who clearly took this seriously and while flexing in front of the mirror, told the reporter:

“In New York, when you say porn, more people are likely to think you mean real estate,” says John, a multimillionaire financier who asked that his real name not be used. “Every two-bit banker at Goldman Sachs can buy you an expensive dinner or have a $175,000 Ferrari, but how many can have the $10 million trophy pad?”

Putting the call on speaker so he could use both hands to get in some Shake Weight time, John went on:

John frequently lets his friends borrow his 5,000-square-foot Upper East Side apartment so they can bring home the ladies while he’s away on business. After letting a London hedge-funder borrow his flat for a few days, the financier reported that his friend was able to score every night with three women (though not at the same time). “He told me: ‘They were excited when they got to the door — and when they saw the view, it was a done deal.’ ”

[NYP]



Article courtesy of Dealbreaker

Opening Bell: 05.31.11

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2nd banker in hotel sex bust (NYP)
Mahmoud Abdel-Salam Omar — the 74-year-old former chairman of Egypt’s Bank of Alexandria — allegedly groped and “gyrated” against the maid in Room 1027 at The Pierre hotel on Fifth Avenue, a law-enforcement source told The Post. He was wearing a bathrobe at the time, but it was not clear what, if anything, he had on under it.

Greek Aid Package To Be Decided By June (Bloomberg)
Inspectors from the EU, the International Monetary Fund and the European Central Bank are set to wrap up a review of Greece’s progress in meeting the terms of last year’s 110 billion-euro ($158 billion) bailout in coming days. The EU will then formulate its plan for further aid to Greece, which remains shut out of financial markets a year after the rescue package.
“We are waiting for their final judgment,” Juncker, who is also Luxembourg’s prime minister, said yesterday in Paris after meeting with French President Nicolas Sarkozy. “Their position will partly determine our position, so it’s too early. We will try to solve the Greek problem by the end of June.”

Japan recovery takes hold, but debt downgrade looms (Reuters)
Japan’s economy offered more signs of recovery from the deadly March earthquake on Tuesday, but Moody’s ratings agency warned both growth and government action may fall short of what is necessary to bring Tokyo’s ballooning debt back under control.

Goldman Sachs names ex-Sen. Gregg to advisory post (Businessweek)
Goldman Sachs Group Inc. said Friday that it has hired former U.S. Senator Judd Gregg as an international adviser.

Libya’s Goldman Dalliance Ends in Losses, Acrimony (WSJ)
In early 2008, Libya’s sovereign-wealth fund controlled by Col. Moammar Gadhafi gave $1.3 billion to Goldman Sachs Group to sink into a currency bet and other complicated trades. The investments lost 98% of their value, internal Goldman documents show…In an effort to make up for the losses, Goldman offered Libya the chance to become one of its biggest shareholders, according to documents and people familiar with the matter.

Lagarde has G8 backing (Reuters)
G8 leaders all back French Finance Minister Christine Lagarde’s bid to run the IMF, Foreign Minister Alain Juppe said Sunday, as she attacked a call to investigate her role in a 2008 legal case that may harm her chances.

Wall Street ‘mispriced’ LinkedIn’s IPO (FT)
Peter Thiel, an early Facebook investor and co-founder of PayPal, said banks did not understand the full potential of the latest internet companies and warned that the next Silicon Valley darlings would negotiate hard when their turn comes to go public. “Whenever a stock price goes up as much as it does with LinkedIn, you assume the IPO was mispriced and the bankers screwed up,” said Mr Thiel, an investor in LinkedIn since its launch. “There continues to be a certain antipathy by Wall Street banks toward Silicon Valley companies where they don’t quite believe it’s real.”

At I.M.F., a Strict Ethics Code Doesn’t Apply to Top Officials (NYT)
At the International Monetary Fund, there is one set of ethics guidelines for the rank-and-file staff and another for the 24 elite executive directors who oversee the powerful organization. Over the last four years, the fund has tightened internal systems for catching ethical misconduct among its 2,400 staff members, establishing a telephone hot line for complaints like harassment; publishing details of complaints in an annual report; and empowering an ethics adviser to pursue allegations, which last year led to at least one dismissal. But the fund’s board members remain largely above these controls. The ethics adviser, for example, is not able to investigate any of them.

Strauss-Kahn assembles crisis team to fight back (Reuters)
Faced with a legal and media onslaught, Dominique Strauss-Kahn is pulling together a crack team of investigators, former spies and media advisers to fight back against charges he sexually assaulted a hotel chambermaid.

‘Bad-tipper’ Strauss-Kahn has food, patio furniture delivered; turns away balloons (NYP)
“They never tip,” said a sweaty Danny Cotto after dropping off a box from Espresso Coffee at around 6 p.m. at the luxe TriBeCa town house…He took in a six-bag grocery order that included healthy fare like boneless, skinless chicken breast, Lean Cuisine meals and Crystal Light.

DSK using man-power to clean up (NYP)
Dominique Strauss-Kahn has hired an all-male cleaning staff to do his dirty work at his TriBeCa townhouse, where he’s awaiting trial for allegedly forcing himself on a hotel maid.

Concerns mount over rising buy-out debt levels (FT)
Joseph Schull, European head of US private equity group Warburg Pincus, warned that his industry should not repeat mistakes made during its heyday in 2006 and 2007, when some companies were bought with excessive loan packages…Howard Marks, chairman of Oaktree Capital Management, a US private equity group investing in distressed assets, wrote in a note to clients last week: “In most regards the capital markets – and investors’ tolerance of risk – are retracing their steps back in the direction of the bubble-ish pre-crisis years.”

A FrontPoint Founder Tries Again With a New Firm (DealBook)
After Mr. Duff helped to orchestrate the sale of FrontPoint to Morgan Stanley in 2006, he struck out on his own, starting Duff Capital Advisors…With the markets in disarray, clients never materialized and Duff Capital shut down in May 2009…Now, Mr. Duff, a former top executive at Morgan Stanley, is trying again. His new firm, Massif Partners — which like FrontPoint has a name that refers to his passion for mountain climbing — is building off the blueprint of Duff Capital and focusing on pensions.

Russia’s Central Bank Signals Interest-Rate Pause After Surprise Increase (Bloomberg)
Bank Rossii, the central bank, yesterday raised its overnight deposit rate to 3.5 percent from 3.25 percent, surprising 11 of 20 economists in a Bloomberg survey. It left the refinancing and overnight repurchase rates unchanged after a quarter-point increase in April, saying in a statement that borrowing costs may be at the level necessary to tackle inflation and promote growth “for the nearest months.”

For Insurers, Bad—but Not Bad Enough (WSJ)
The deadly outbreak of tornadoes across the U.S. since late April is expected to cost the insurance industry more than $5 billion, according to disaster-modeling firm Eqecat. That puts weather-related losses in the U.S. so far this year in the range of $13 billion to $15 billion, three to four times a typical year. Add in catastrophes like the earthquakes in New Zealand and Japan, and disaster-related losses for the industry are estimated to be upward of $50 billion this year…”I think things are now bad enough to be good enough,” says Meyer Shields, an analyst at Stifel Nicolaus. Bad enough, that is, that the industry will be forced to start raising premiums later this year or early next. That would immediately benefit major insurance brokers such as Aon Corp. and Marsh & McLennan Cos. Indeed, their shares are up more than 10% this year, roughly double the broader market.

Analyst: Chipotle expands test of chorizo (NRN)
Chipotle Mexican Grill has expanded a test of a new chorizo sausage that, if rolled out, would be the chain’s first new meat option in years, a securities analyst said Friday.


Hackers Disrupt PBS Web Site and Post a Fake Report About a Rap Artist (NYT)
The PBS Web site briefly carried a fake article claiming that the famed rapper Tupac Shakur was alive and living in New Zealand after a group of hackers took over the organization’s computer systems on Saturday night.



Article courtesy of Dealbreaker

Moto: Handset Biz Fetches Almost Nothing, Says Goldman

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Folks, my apologies for coming late to the following: Goldman Sachs’s Simona Jankowski today reiterated a Buy rating on shares of Motorola Mobility (MMI), and a $34 price target, writing that the stock is undervalued based on a sum-of-the-parts analysis, and that upside in smartphone sales could boost the bottom line.

On the valuation side, the handset business may be trading at only one or two times projected earnings per share, because the current stock price is almost entirely reflective of the other assets: $8 per share in deferred tax assets, $11 per share in cash, and the $3 to $4 per share that the set-top box business may be worth. (Regarding the deferred tax asset, $2.4 billion, she observes it, “is currently largely offset by a $2.3 billion valuation allowance due to MMI’s recent lack of profitability, thus it does not fully appear on the balance sheet.”)

Of course, the handset business has been losing money, and the question is whether it will finally turn profitable this year.

Jankowski thinks it will, and she assigns a 7 times P/E multiple to the 2012 estimated EPS of $1.61 cents per share for that unit. That would produce a stock value of $11.29 per share just for handsets.

Moreover, every 1 million extra smartphones Moto sells will produce another $50 million in net income, or 17 cents per diluted share on an annual basis, she estimates. She’s currently modeling the company selling 20.4 million units of smartphones this year, out of a total of 42.5 million units, which includes tablet computers (“Xoom“) and feature phones.

Moto shares today rose 30 cents, or 1%, to $24.94.

Article courtesy of Tech Trader Daily

Write-Offs: 05.20.11

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Gold jumps 1.5 percent on euro zone debt fears (Reuters)

Payrolls Grow in 42 States Including New York, Texas as Job Market Revives (Bloomberg)

Greece hit by Fitch debt downgrade (FT)

IMF approves 26 billion euro funding for Portugal (Reuters)

Former IMF Chief to Stay in Temporary Housing in Lower Manhattan

Dervis rules himself out of IMF race (FT)

IMF Aborted Strauss-Kahn Probe in 2008 (Bloomberg)

Emerging market equity funds see $1.6 bln outflows (MarketWatch)

Soros sharpens gold bubble debate (FT)

Analysts’ Rare ‘Sell’ Ratings are Rarely Right (Bloomberg)

Mayor Bloomberg says if Apocalypse happens, alternate side parking suspended (NYDN)

JPMorgan Traders’ Market-Share Inroads Growing, Deutsche Bank Analyst Says (Bloomberg)

Goldman Sachs Names Sorrell, Gutman as Co-Heads of U.K. Investment Banking (Bloomberg)

UBS Loses Two Top Investment Bankers (CNBC)

Who shot bin Laden? Former SEALs fill in the blanks (WaPo)



Article courtesy of Dealbreaker

Write-Offs: 05.16.11

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$$$ Full IMF Complaint Against Dominique Strauss-Kahn (ABC)

$$$ IMF Chief Dominique Strauss-Kahn to Spend Night at Rikers Island Jail (ABC)

$$$ El-Erian: Strauss-Kahn Allegations Are Consequential for the Global Economy (PIMCO)

$$$ Merkel rejects Greek debt restructuring (FT)

$$$ Appaloosa Trots Away From Bank Stocks (MarketBeat)

$$$ IMF disbursing more loan money to Ireland (Reuters)

$$$ U.S. hits debt ceiling (Politico)

$$$ Treasury to tap pensions to help fund government (WaPo)

$$$ Demand for US debt falls amid Chinese sell-off (FT)

$$$ US budget deal costs $3 bln more in short term (Reuters)

$$$ Gross says PIMCO “never” short Treasuries (CNBC)

$$$ Yahoo: Bad Timing for Einhorn (MarketBeat)

$$$ Goldman Sachs Finds a Couple of Defenders (MarketBeat)

$$$ Google Makes $3 Billion Bond-Market Debut (Bloomberg)

$$$
Facebook Meeting With Banks on Possible IPO (CNBC)

$$$ Robert De Niro Dealing To Play Bernie Madoff For HBO Movie Of ‘The Wizard Of Lies‘ (Deadline)



Article courtesy of Dealbreaker

Youku Files For $678M Secondary Offering

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Chinese online video site Youku.com (YOKU) this morning said it plans to sell 8 million shares of stock in a secondary offering, and that shareholders plan to sell 4 million American depository shares (ADS), according to a filing with the Securities & Exchange commission.

That would be equivalent to a little over 10% of the 105 million ADSs the company has outstanding. Today’s following is a follow-up to a May 5th announcement when the company had said it would do a secondary, but did not disclose details. The announcement at the time sent shares down 7% in after-hours trading.

The offering is being led by Goldman Sachs, with Allen & Co., Piper Jaffray, Barclays Capital, and Pacific Crest Securities joining in. There is an over-allotment option for another 1.8 million ADSs from the selling shareholders, the prospectus says.

The proposed maximum aggregate offer price of the total offering is $678.5 million.

The company plans to use the proceeds to pay for acquisition of video content, and for infrastructure and product development spending, it said.

Among the insiders selling, directors Dele Liu, Leo Jian Yao, Frank Ming Wei, and Sunny Xiangyang Zhu may offer up to 1.8 million of the ordinary shares in total, out of 829.9 million ordinary shares currently owned. (Ordinary shares in Youku are at an 18-to-1 ratio to the ADSs.) In addition, Brookside Capital may sell 39.6 million ordinary shares, and Sutter Hill Funds may sell 30.6 million shares, out of their total holdings of 268 million and 196 million, respectively.

Youku shares are up $1.41, or 3%, at $47.72.

Article courtesy of Tech Trader Daily

The 25 Biggest Hedge Funds

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For those size queens out there, Institutional Investor has compiled the 2011 rankings.

25. ESL Investments ($14.0 billion)
23. Moore Capital ($15.0 billion)
23. Appaloosa Management ($15.0 billion)
22. Davidson Kempner Capital ($15.3 billion)
21. DE Shaw ($15.6 billion)
20 Landsdowne Partners ($16.146 billion)
19. AQR Capital ($16.7 billion)
18. Elliott Management ($16.8 billion)
17. Renaissance Technologies ($17.0 billion)
16. Winton Capital Management ($17.78 billion)
15. Avenue Capital ($18.3 billion)
14. Goldman Sachs Asset Management ($19.8 billion)
13. King Street Capital (($19.9 billion)
12. Farallon Capital ($21.5 billion)
11. Baupost Group ($23.4 billion)

10. Angelo, Gordon, & Co ($23.6 billion)
9. BlueCrest Capital Management ($24.5 billion)
8. BlackRock ($25.0 billion)
7. Och-Ziff Capital Management ($27.6 billion)
6. Soros Fund Management ($27.9 billion)
5. Brevan Howard ($32.0 billion)
4. Paulson & Co ($35.887 billion)
3. Man Investments ($40.6 billion)
2. JPMorgan Asset Mangagement ($54.2 billion)
1. Bridgewater Associates ($58.9 billion)



Article courtesy of Dealbreaker

Breaking: Investors Stick With Firms That Make Them Money

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Fifty-four percent of respondents to the global poll of traders, investors and analysts conducted May 9-10 have an unfavorable opinion of the New York-based bank, more than double the negative rating for JPMorgan. Yet a month after a U.S. Senate report said Goldman Sachs misled clients, 78 percent of those surveyed said the accusations will either have no effect on the firm or will harm its reputation without driving away customers. “Investors will continue to put their money with capable institutions, regardless of their history or morality,” said poll participant Christian Contino, 27, who works as a consultant for the investment-management section of the United Nations’ International Fund for Agricultural Development. [Bloomberg]



Article courtesy of Dealbreaker