Chance to win Buffett’s billion dollar NCAA bracket challenge just a pipe dream (LancasterOnline)
Warren Buffett didn’t become the second-richest man in the world by taking silly risks. So his billion-dollar NCAA bracket challenge — in which he’s teaming up with Quicken Loans and Yahoo Sports — may be tantalizing for those who participate, but the chances of actually winning are, well, less than infinitesimal. The odds of picking a perfect March Madness bracket and claiming the $1 billion grand prize (a sum, however, that would only make a small dent in Buffett’s estimated $63.4 billion fortune) are about 1 in 9.2 quintillion.
Activist investors bump into each other in campaigns (GlobalPost)
When Barington Capital Group in October reported a stake of more than 2 percent in Darden Restaurants, Inc. (NYSE:DRI) with a vow to shake up the company, another investment firm was caught off guard. Starboard Value LP, which takes stakes in companies that it perceives to be undervalued with the hopes of making changes, had studied the restaurant chain for six months as a potential target and was waiting for the right moment to pounce.
Hennessee Hedge Fund Index Adds 2.46% In February (Finalternatives)
Hedge funds added 2.46% in February, according to the Hennessee Hedge Fund Index, trailing the 4.31% gain of the S&P 500. The top performing strategies for the month were healthcare and biotech, up 4.14%; distressed, up 3.72%; and international, up 3.29% The bottom three strategies for the month were short biased, down 2.34%; market neutral, down 0.02%; and convertible arbitrage, up 0.19%.
New Whitepaper From Riveles Law Group: Launching a Hedge Fund (HedgeCo)
New York hedge fund attorneys Riveles Law Group has put out a new whitepaper outlining the legal, structural and practical considerations to be evaluated in establishing a hedge fund. The whitepaper covers offshore and domestic funds, hedge fund structure, incubator funds, service providers, regulations, management fees, long with a performance-based allocation. “Launching a hedge fund is a major undertaking that requires a systematic approach and experienced partners in a variety of industries and areas of expertise.”
Fortress-linked Pantera invested $10 mln in Bitstamp (Reuters)
Pantera Capital Management LP, a hedge fund that manages money for Fortress Investment Group LLC (NYSE:FIG) executives, invested about $10 million in Bitstamp Ltd months before it emerged as the world’s dominant dollar-bitcoin exchange, Bloomberg reported, citing three people briefed on the deal. The infusion late last year ranks among the largest single investments in a bitcoin venture and is part of Pantera’s strategy to build a brand in the bitcoin world, Bloomberg said. The market for the digital currency was rocked last month when Mt. Gox, once the world’s largest bitcoin exchange, ceased operations and filed for bankruptcy in Japan and the United States.
Sears Board Approves Land’s End Spin-Off (247WallSt)
It really did not take long for Sears Holdings Corporation (NASDAQ:SHLD) to part with its Land’s End business since first floating the possibility last October. In December, Sears filed documents with the U.S. Securities and Exchange Commission (SEC) announcing the spin-off. Sears’ board of directors on Friday approved the spin-off. On April 4, Sears shareholders of record as of March 24 will receive a distribution of 0.300795 shares of Land’s End common stock for each share of Sears stock they hold. The new stock will start trading on April 7 on the Nasdaq under the ticker symbol ‘LE’. Until the spin-off is complete Sears common stock will trade either in a “regular way” market or a “ex-distribution” market. Regular way stock will trade with an entitlement to shares of Land’s End common stock on the distribution date while ex-distribution shares will carry no such entitlement.
Hedge Fund Directors Are Useless, Most Investors Say (ThinkAdvisor)
Hedge fund directors don’t get much respect these days. Corgentum Consulting, a provider of hedge fund operational due diligence reviews and background investigations, reported last week that 73% of investors and operational due diligence analysts surveyed felt directors did not serve a useful function. Worse, 76% said directors did not provide true independent oversight of funds. “Offshore jurisdictions and fund directors have an ongoing public relations problem when it comes to investors,” Corgentum managing partner Jason Scharfman said in a statement.
Hayman’s Bass on General Motors probe (CNBC)
Why women make better investors (TheWeek)
Just when you thought the whole Venus versus Mars divide was getting tired, along comes new research that highlights gender differences — this time, in the world of investing. The big surprise, however, is that the way women approach investing actually works in their favor. According to BlackRock, Inc. (NYSE:BLK) investment strategist Nelli Oster, there are three main ways in which women differ from men. First, women tend to view their investing with a longer-term, non-monetary goal in mind — namely, financial security, independence, and quality of life.
Kyle Bass: GM Could Hit $50 in 12 to 18 Months (MoneyNews)
While General Motors Company (NYSE:GM)‘ shares have dropped 16 percent this year amid safety problems with its cars, hedge fund star Kyle Bass, founder of Hayman Capital Management, is bullish on the company. He tells CNBC that GM’s stock could reach $50 in 12 to 18 months. The stock closed at $34.09 Friday. Hayman’s stake in GM makes up almost 25 percent of its portfolio, according to CNBC. The government is investigating ignition problems with GM cars, and the company has recalled 1.6 million of them.
Treasury Yields Rise From Lowest in Week Before Fed Amid Crimea (SFGate)
Treasury yields rose from the lowest in a week before the Federal Reserve begins a two-day meeting tomorrow that analysts said will see policy makers further scale back bond-purchase stimulus. U.S. debt dropped, after posting the biggest advance in two months last week, even as the U.S. and European Union warned Russia it will face sanctions if it annexes Crimea. The Fed is forecast on March 19 to cut its monthly stimulus bond purchases to $55 billion while providing guidance on the future of interest-rate increases. A measure of general business conditions in the New York area rose as U.S. industrial production climbed the most in six months.
Billionaire Ray Dalio’s Top 3 Canadian Stock Picks (Fool)
One of the world’s most respected hedge fund managers is predicting hard times for Canadians. Billionaire Ray Dalio, founder of Bridgewater Associates, says the country’s economy is at the beginning of a tough rebalancing period. In a February research report, Bridgewater reported that, “for more than a decade major global macro pressures have benefited Canada on an absolute basis and relative to the U.S.,” and that those conditions “have now left the Canadian economy unbalanced and at significant risk for the next decade.” Mr. Dalio’s musings are worth your attention. His hedge fund has made more money for clients than any firm in the history and his research is required reading in some investment circles.
Canadian pension funds warned about property exposure (FT)
Canada could soon find its haven reputation under threat as clouds continue to gather over its property market, raising concerns that Canadian pension funds are overexposed to domestic real estate. Last month it emerged that Pimco, one of the world’s biggest fund houses, had slashed its exposure to Canada amid fears that its housing market is heading for a significant correction. Ed Devlin, head of portfolio management at Pimco Canada, blamed the expected property market decline on a combination of higher mortgage rates, tighter mortgage underwriting standards, modest economic recovery and stretched valuations in the housing market.
German court rejects $1.9 bln Porsche SE investor lawsuit (Reuters)
A German court has dismissed a lawsuit by hedge funds seeking 1.36 billion euros ($1.9 billion) in damages from investment company Porsche SE , in a ruling that bodes ill for other claimants pushing damages claims against Porsche. Two dozen hedge funds, including Viking Global Investors, Glenhill Capital and Greenlight Capital, had accused Porsche SE of camouflaging a plan to acquire much-bigger Volkswagen AG (ADR) (PINK:VLKAY) and secretly piling up a holding in Europe’s largest automaker during 2008.
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