Nouriel Roubini: ‘Market Reaction’ Will Force Fiscal Cliff Deal (AdvisorOne)
Nouriel Roubini said Friday “there’s a highly likely chance we’re going to go over the cliff. If we do so, the market reaction is going to force the two sides to reach an agreement.” Roubini, appearing on “Bloomberg Surveillance,” said that U.S. growth will be “barely 1.7%” in 2013. On whether he’s bullish on the United States: “In the long term, I think that the fundamentals of the U.S. are a lot stronger than other advanced countries. In the short run I think we will have another year of very anemic economic growth. Next year we will have barely 1.7% including a modest amount of fiscal drag and lots of tail risk could make it worse in the U.S–bigger fiscal cliff, the eurozone crisis, a Chinese hard landing, maybe tensions will raise oil prices in the Middle East–so the downside scenario is actually having a meaningful probability.”
What if Buffett and Icahn retire in 2013? (MSN)
While neither Berkshire Hathaway’s (BRK.A 0.00%) Warren Buffett nor Carl Icahn, who runs Icahn Enterprises (IEP 0.00%), have shown any signs of slowing, the thought is in the back of investors’ minds and it begs the question: Who will be the next generation of Wall Street leaders. For decades, Buffett and Icahn have been a sort of yin and yang when it comes to investing styles, and their outspoken ways have been a compass for many investors. Buffett, who champions stock investments with a holding period of “forever,” is often cited as an ambassador of long-term investing and his annual letter is required reading for many.
Vitro Seeks as Much as $1.6 Billion in Damages From Funds (Bloomberg)
Vitro SAB (VITROA), Mexico’s largest glassmaker, filed a lawsuit seeking damages of as much as $1.6 billion from bondholders including U.S. hedge funds that shunned the company’s restructuring plan and tried to force it into involuntary bankruptcy in Mexico. Under the company’s restructuring, approved by a Mexican court in February and subsequently rejected by U.S. courts, a trust holds newly issued bonds and payments for bondholders not accepting the plan. Vitro, which defaulted on $1.2 billion in bonds in 2009, will seek to collect damages from the trust related to efforts by dissident bondholders to put the company and 17 units into involuntary bankruptcy in Mexico, the company said in a filing yesterday to the Mexican stock exchange.
ConvergeEx Adds PortfolioScience Risk Tools To Eze OMS (Finalternatives)
Technology company ConvergEx has incorporated risk management tools by PortfolioScience into its Eze OMS risk solution. PortfolioScience specializes in risk management technology for financial institutions, investment services, financial advisers and hedge funds. Its products allow fund managers, traders and investors alike to access risk analysis capabilities on-demand.
Sweden continues dominance of Nordic hedge fund market (InvestmentEurope)
Sweden accounts for 69% of hedge funds in the Nordic region, according to the latest annual industry report from Stockholm-based OE Capital. The company’s third annual report on the regional industry is based on data covering 209 funds with at least five years of activity, with performance and other figures calculated between the end of June 2011 to the end of June 2012.
Malta home to estimated €80 billion in hedge funds (MaltaToday)
Malta has seemingly begun to win business from more-established fund jurisdictions, benefiting from a growing demand by investors for transparency as well as from fears among hedge funds that the EU was becoming increasingly hostile to firms based outside of it. According to the Malta Financial Services Authority, over the past year and a half, companies from British Virgin Islands, the Cayman Islands and Luxembourg are switching their legal domicile to Malta. In addition, at least a dozen large UK hedge funds have shifted part of their operations, including accounting and investor relations, to Malta.
