Archive for February, 2011
February 25, 2011
Chidem Kurdas
There is one key interested party that is missing from the case filed against Citibank by Irving Picard, the government-appointed trustee of the Madoff estate. I went through the136-page complaint and nowhere did I see mentioned this group—hundreds of thousands of hidden and mostly nameless victims of the lawsuit. To declare a personal interest, I’m probably among them. (more…)
Tags:Bankruptcy, Irving Picard
Posted in Fraud investigation, Fund of funds, Madoff, Regulation | 1 Comment »
February 16, 2011
Japanese stocks were a money sink for so long that a lot of people gave up on them. However, what went down usually comes up again and brave souls are once again buying Japanese equities—or at least dipping in a toe by using exchange traded funds. (more…)
Tags:Japan, Maxis, MSCI, Nikkei 225
Posted in ETF, Global Macro | Leave a Comment »
February 15, 2011
Chidem Kurdas
Getting more capital together is often the main motive for a merger or acquisition. But the resulting business is often less than the sum of the parts. It ends up with less assets than the two combined managers had separately because some investors redeem in response to the change. (more…)
Tags:M & A, operational risk
Posted in Mergers & Acquisitions, Redemptions | Leave a Comment »
February 9, 2011
Chidem Kurdas
Fund of hedge funds are still reeling from the Madoff fraud and huge redemptions. They had another net outflow of assets in 2010, despite investors moving back to hedge funds. But you would not know that this sector is in dire straits from Blackstone, which ended the year with a net inflow of $4.3 billion into its fund of funds and started a second manager seeding vehicle to feed the investment program.
Do other fund of funds have a chance? Certainly some are trying, even as the Blackstone behemoth attracts institutional investors. (more…)
Tags:Joan Solotar, Raymond Nolte, SkyBridge Capital
Posted in Asset Flows, Fund of funds | Leave a Comment »
February 7, 2011
Master limited partnerships raised $20 billion in debt and $12 billion in follow-on equity in 2010, in addition to initial public offerings—altogether more than in any previous year. Funds that invest in this natural resource niche did well. (more…)
Tags:Cohen & Steers, Douglas Bond, Gabriel Hammond, Kayne Anderson, Kevin McCarthy, Legg Mason
Posted in Asset Flows, Commodities, Energy, Mutual Funds, Public Offering | 1 Comment »
February 2, 2011
Chidem Kurdas
Financial fraud typically comes to light because someone complains. But as Harry Markopolos found out when he went to the US Securities and Exchange Commission with evidence against Bernard Madoff, complaining may not put an end to a scheme. And then people say you’re a joke! (See below.)
Indeed, the whistleblower’s lot is typically not a happy one, in the experience of Sherron Watkins, the accountant who detected that little accounting issue at Enron. (more…)
Tags:David Einhorn, Enron, Harry Markopolos, New York State Society of Certified Public Accountants, Sherron Watkins
Posted in Fraud investigation, Madoff, Regulation, SEC | 2 Comments »