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Archive for the Hedge Funds Category

Economic News Sends Gold Higher -

Gold broke the $1,760 an ounce mark in trading this week.  The precious metal rose on the possibility of slower domestic economic growth and another round of monetary stimulus.  Recently, Federal Reserve Chairman Ben Bernanke indicated that additional monetary stimulus may be in the works to lower unemployment.  The lingering European debt crisis is also increasing demand for gold.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-04/gold-traders-more-bullish-as-debt-crisis-u-s-economy-spur-bets-on-gains.html

James Sutliff

Mergers & Acquisitions Decline -

Mergers and acquisitions declined in the second quarter and marked the first time in over a year that deal volume dropped in two straight quarters.  Two reasons for the drop in M & A activity are weak global economies and the sovereign debt crisis.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/06/24/us-deals-idUSTRE75N00V20110624

Jim Sutliff

Glencore Valuation -

Glencore is expected to sell a 15% to 20% stake with an estimated value of $9 to 11 billion.  Reuters reports that Barclays Capital and Credit Suisse have released valuations that place Glencore at $52.5 to $69.2 billion.  The Reuters article also released additional information about the valuations. 

To read the Reuters article, please click here:

http://www.reuters.com/article/2011/04/16/us-glencore-valuation-idUSTRE73F20U20110416

Jim Sutliff

Private Equity Transparency -

Transparency in Private Equity firms has always been a concern for investors.  New leadership at three major private equity firms are attempting to address the concerns and change of image of the private equity sector.  The three private equity houses are Blackstone, PAI Partners, and 3i Group.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/04/03/us-mergers-summit-privateequity-leadersh-idUSTRE7322VK20110403

James Sutliff

Copper Expected To Fall -

The Bloomberg Chart of the Day highlights the recent decline in copper prices.  Copper futures may post their biggest decline monthly decline in over a year.  The decline in copper prices may continue in the near term due to weak economic numbers, turmoil in the middle east, and lower demand from asian countries.

To read a the Bloomberg Chart of the Day, please click here:

http://www.bloomberg.com/news/2011-03-16/copper-sliding-as-hedge-funds-get-out-of-dodge-chart-of-the-day.html

James Sutliff

LinkedIn IPO -

LinkedIn is planning an initial public offering that could raise as much as $175 million.  The LinkedIn IPO may be the first in a string of social media related IPOs in the near future.  Groupon and Facebook are expected to test the IPO waters within the next two years.  In 2009, total revenue for LinkedIn was $120.1 million which is less than the amount posted for the first nine months of 2010.  In July, Tiger Global Management LLC invested $20 million at a valuation of $2 billion.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-01-28/linkedin-share-sale-may-be-first-in-wave-of-social-media-ipos.html

Jim Sutliff

Private Equity IPOs -

The IPO market is expected to pick up this year as several private equity backed companies go public.  Nielsen Holdings BV will be testing the IPO waters this week and it is a significant offering.  The last time that there was a similar wave of public offerings was from 2004 to 2006.

To read the Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052748704279704576102312769390574.html?mod=WSJ_Deals_LEFTTopNews

James Sutliff

Buyouts -

Thomson Reuters has a site specifically for leveraged and managed buyouts.  The Buyouts site provides news and analysis on deals, data, and funds.  Upcoming buyout conferences and events are also showcased on the site.   

To visit the Buyouts site, please click here:

http://www.buyoutsnews.com/

James Sutliff

Republican Stock Market?

The sweeping victories by the Republicans may serve to keep the bulls running in the market.  The House is now solidly controlled by the Republicans and Democratic control of the Senate has been watered down a great deal.  Democrats in the Senate are likely to show caution regarding issues such as higher income and estate taxes.  The tax rate on carried interest also may be off limits to changes by the Democrats.  There are several Senate seats held by Democrats that are vulnerable in 2012 so this Congress should be much more conservative.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2010-11-03/republican-victory-in-u-s-midterm-elections-may-keep-bull-market-alive.html

James Sutliff

3i Group Plc -

Private equity firm 3i Group Plc has seen an increase in new deal activity.  Total investments for the firm jumped 65% for the year.  The firm also made a move towards the asset management business with a deal for Mizuho Investment Management. 

To read a related Reuters article, please click here:

http://www.reuters.com/article/idUSLDE68S1II20100930

Jim Sutliff

LBO Wire -

The Dow Jones LBO Wire provides news and information on buyouts, deals, and the industry.  The e-newsletter is written daily and is a great source of information.  A recent article discusses the Blackstone Group and their fundraising efforts.

To visit the LBO Wire, please click here:

http://www.bloomberg.com/news/2010-09-15/nadal-next-challenges-federer-in-endorsements-after-career-grand-slam-win.html

Jim Sutliff

Investing In Private Companies -

Smart Money has an excellent article on investing in private companies.  Some of the advantages and possible pitfalls are discussed in the article.  Investment vechicles mentioned in the article are venture capital and private equity funds, and angel investing groups.

To read the Smart Money article, please click here:

http://www.smartmoney.com/investing/stocks/how-to-invest-in-a-private-company/

Jim Sutliff

GM Valuation -

The GM IPO is a major topic in financial circles and the valuation of the firm is at the center of discussions.  The Deal Journal has a good article on the number crunching behind the valuations.  The Dow Jones Investment Banker provided strong analysis of the financial position of GM.

To read the WSJ Deal Journal article, please click here:

http://blogs.wsj.com/deals/2010/08/20/the-gm-ipo-valuation-how-about-110-to-130-a-share/

Jim Sutliff

Bloomberg New Energy Finance -

Bloomberg New Energy Finance is a central hub for news, data, and research on the new energy market.  Biofuels, power storage, solar and wind, are just some of the energy sectors covered on the website.  The industry intelligence link provides a wealth of information for investors and analysts.

To visit Bloomberg New Energy Finance, please click here:

http://bnef.com/

Jim Sutliff

Forbes Markets Brief -

To get a quick overview of the markets take a look at the Markets Brief on Forbes.  It provides news and insights on domestic and global markets.  The report also provides valuable information on earnings reports and views from analysts regarding economic events.

To visit the Forbes Markets Brief, please click here:

http://www.forbes.com/markets/marketsbrief/

Jim Sutliff