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Bloomberg – Blackstone Group LP, the world’s largest private-equity firm, fell to a record low in New York trading this week on concern that a rebound in leveraged buyouts will lag behind any economic recovery.
“Given the economic outlook and pressure on asset values, even on existing investments, it’s going to be a while before they have a chance to come back,” said Robert Lee, an analyst with Keefe, Bruyette & Woods Inc. in New York. “It’s hard for investors to see through that valley.”
After announcing about $169 billion of buyouts in 2006 and 2007, New York-based Blackstone has since completed $9.2 billion of deals. An absence of financing for new acquisitions and an inability to sell current holdings have idled the firm and competitors such as KKR & Co. and Carlyle Group LP. Investors say deal won’t resume until after the economy starts to grow and banks can rebuild capital depleted by losses on mortgage-backed securities and previous LBO loans.
Blackstone, run by Chairman Stephen Schwarzman, probably will report a loss tomorrow of 31 cents a share, its third in the past four quarters, according to the average estimate of seven analysts in a Bloomberg survey. The company had a profit, excluding some costs, of 8 cents a share in the same quarter a year earlier.
Of the nine analysts who rate Blackstone shares, six have ratings equivalent to hold, including Lee. One analyst, Barclays Capital’s Roger Freeman, suggests selling the stock. Two recommend clients buy the shares.
Blackstone dropped below $4 a share for the first time on Feb. 23, closing at $3.89, almost 90 percent less than its $31 initial public offering price in June 2007. The stock declined 17 cents to $4.12 yesterday in New York Stock Exchange composite trading.
New York (HedgeCo.Net) – Shareholders in Falkland Gold & Minerals have approved plans to buy Bahamas-based oil exploration company BPC after a unanimous vote yesterday.
Philip Richards, head of the RAB Special Situations Fund that owns a 76 percent stake in Falkland, will pocket around £1m thanks to the reverse takeover and his vast personal stake in BPC of 300,000 shares.
While there has been some question regarding a possible conflict of interest with a hedge fund manager having that kind of stake in a company, Richards has been completely transparent in his holdings long before the meeting in which shareholders overwhelmingly approved the takeover.
"This was a deal recommended by two strong independent and separate boards, both of which concluded that it was in the best interest of all their respective shareholders," said a spokesperson for RAB.
Shareholders will get six shares of Falkland for every one share of BPC.
RAB made headlines when the fund experienced sharp declines amidst the nationalization of Northern Rock, in which they amassed a significant stake. Meanwhile, Falkland has posted losses of over 90 percent over the past four years, prompting investors in the Special Situations Fund to lose an estimated £11m.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com
eFluxMedia- Quoting an unnamed Wall Street source, the New York Post said that Apple’s hedge fund investors are very worried after Steve Jobs appearance at MacWorld 2008.
In June, Apple downplayed the rumors rumors and speculations regarding Steve Jobs’ health. The company has issued a statement saying that he was affected by “a common bug”. Apple’s spokesperson noted that he had received antibiotics as treatment and is now recovering. After his speech at WWDC, some major news sites and various blogs have commented about Job’s physical appearance. Apple’s CEO appears to have lost some weight and he looked a little pale.
But since then the company didn’t provide any other update on Jobs’ health. The New York Post noted also that other people who have met with Jobs in the weeks surrounding the introduction of the iPhone 3G on July 11, said they came away troubled by his thin appearance.
Jobs’ health is a reason of concern, because he was diagnosed with pancreatic cancer in October 2003, but Apple did not announce the illness until nine months later, in July next year. Jobs underwent a successful surgery in August 2004.
MSN India- ICICI Venture Fund Management is planning to list its $1.5 billion real estate fund on the London Stock Exchange (LSE).
According to sources, the fund house will be providing the flexibility in the document to list the realty fund anytime during its life span.
ICICI Venture, the largest PE fund in India, currently manages about $2.5 billion in assets.
Its investment focus areas span across private equity, buyouts, real estate and mezzanine financing. The country’s largest private equity fund plans to raise $3 billion for two funds When contacted, an official spokesperson for ICICI Ventures offered no comments.
New York (HedgeCo.Net) – New York hedge fund Manhasset Capital will start the liquidation process later this month after the decision was made by the fund’s seeder to pull out their $100 million initial investment.
A spokesperson for Fairfield stated, ““As part of a normal rebalancing of capital, FGG has indeed decided to close its co-branded single manager fund, Fairfield Manhasset Offshore Fund Ltd., which we created as part of an agreement with Manhasset Capital Management. However, we cannot comment on any of Manhasset Capital’s choices; they run their own business and have their own investors, and it would be incorrect to state that FGG had caused Manhasset’s current or future decisions.”
Fairfield Greenwich Group, who seeded Manhasset’s offshore fund and had a three-year profit sharing agreement with the firm, decided to pull out just a month and a half after the agreement expired on May 1st. Manhasset ran an onshore fund as well, which engaged in a long/short equity strategy and focused on mid-cap U.S stocks. Total assets of both funds were around $165 million.
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! Be sure to check out our sister sites. For more information, visit www.hedgeconetworks.com
Reuters) – Activist hedge fund Toscafund has raised its stake in Aberdeen Asset Management by around another 50 million pounds to more than 25 percent, continuing its rapid stake-building of recent months.
Toscafund, which is run by Martin Hughes, increased its holding to 25.49 percent on Wednesday from 20.02 percent, according to a statement to the Stock Exchange on Friday, having increased its stake marginally on Monday.
"Aberdeen is an excellent global asset manager covering nearly all product areas. We’re supportive of management and believe their prospects are very good," a Toscafund spokesperson said.
