wndysrf Posted November 4, 2004 Report Posted November 4, 2004 The Mania Continues............. From yesterday's WSJ: Huge Hedge Fund Launched Successfully Under Eric Mindich By GREGORY ZUCKERMAN and HENNY SENDER Eric Mindich, a former star trader at Goldman Sachs Group Inc., has succeeded in launching a hedge fund sized at more than $3 billion, one of the largest start-up funds on record. The success of Mr. Mindich, a former Wall Street boy wonder, is the latest sign that the appetite for hedge funds on the part of large institutions -- like university endowments, pension plans and charities, as well as wealthy investors -- continues to grow. "This is certainly the largest new fund I've seen in the last 15 years," says James R. Hedges, president of LJH Global Investments LLC, which invests in hedge funds and advises clients. "The largest until now were about $1 billion." The successful start of the fund, called Eton Park, comes despite heavy fees and other difficult terms for potential investors. For one thing, investors have to tie up their money in the fund for as long as 4? years to avoid a heavy 6% redemption fee. With his investors' money locked up for years, Mr. Mindich can afford to wait for prime investment opportunities, unlike other hedge funds that face monthly or quarterly redemptions from investors. Mr. Mindich's investors had to invest at least $5 million to get into the fund, and will pay an annual management fee of 2% to be part of Eton Park, higher than the usual requirements, in addition to handing over 20% of any investment profits. Goldman Sachs Asset Management, Harvard University, and other large investors put large amounts into the hedge fund. Sparking the interest is the pedigree of Mr. Mindich, as well as the lackluster investing options currently available. Mr. Mindich started working at Goldman after high school, and spent summers at the firm while earning a degree in economics at Harvard. In 1994, at the age of 27, he became the youngest partner in Goldman's history. He learned the trading business on Goldman's hallowed risk-arbitrage desk. He became a protege of Robert Rubin, the former U.S. Treasury secretary, eventually leading the trading business to record profits. Two years ago, Mr. Mindich became one of Goldman's top executives. Another reason there has been such excitement surrounding Mr. Mindich is the growing view that stocks and bonds aren't cheap and therefore are unlikely to turn in big gains in coming years, forcing large investors to search for types of investments that can still generate double-digit gains. In this environment, some funds of hedge funds, which distribute assets across an array of hedge funds, feel they can't afford not to invest in a big new fund like Eton Park; That is because if the new fund takes off, they will look bad. Mr. Mindich plans to invest as much as 70% of Eton Park's money in traditional equity strategies involving both purchases and "shorting". But given just how much money is now in equity hedge funds, Mr. Mindich has assured his investors that he will range wide to produce big returns, including Latin American, Eastern European and South African markets. Also, as much as 30% of Eton Park's funds may go into less easily tradeable "private" transactions. Mr. Mindich hasn't managed money for several years, suggesting he may have challenges starting out with a bang. But investors say he has assembled a top-notch team, including Stuart Hendel, formerly a managing director in Morgan Stanley's prime brokerage division, and traders such as Erland Karlsson, formerly of Goldman Sachs in London, Scott Prince, also a former Goldman staffer in charge of equity derivatives and Edward Misrahi, who will have responsibility for emerging market investments at Eton Park and spent 13 years at Goldman. While few hedge funds have ever started out with nearly as much capital, other funds that split off from existing hedge-fund firms have had problems managing so much money. In 2001, technology specialist Dan Benton left hedge fund Pequot Capital to found Andor Capital Management, taking about $8 billion and a slew of traders with him. At first the fund soared, and Mr. Benton managed as much as $10 billion early last year. But one misplaced bet -- that tech stocks would sink last year -- sparked heavy losses and investor defections. "Investors are concerned about missing out" on the next great hedge-fund manager, says Mr. Hedges. ............................... Now to change the subject. The stock of the day is BEBE stores. I'm always drooling over the suggestive print ads found in magazines, billboards, and bus stop benches....
wndysrf Posted November 4, 2004 Author Report Posted November 4, 2004 BEBE model posted as "Exhibit A"
lucid and confused Posted November 4, 2004 Report Posted November 4, 2004 I'd like to post Exhibit C, with the caveat that the market can stay irrational longer than you can stay solvent:
lucid and confused Posted November 4, 2004 Report Posted November 4, 2004 Here's Exhibit B Oh and wndy, thats a MAN baby....
Guest Posted November 4, 2004 Report Posted November 4, 2004 So Taylor foresees a "smooth" adjustment to the current account, does he? Okay, after a little thought, I have to agree with Taylor. With all the support based on "moral" issues, the entire neoconservative filth group is completely and solidly entrenched in control. Taylor just needed to expand on his bullhorning a little bit. What he failed to mention was, with the neocons in firm control of everything, the "adjustment" will take the form of a "smooth" parabola to hell. Crap, after Kerrey's concession, it only took the shrub regime an hour or so to formally request an increase in the debt ceiling. Gold and the U.S. Charmin should see "smooth" adjustments as well. Thanks for the heads up, sub-minion Taylor.
Guest Posted November 4, 2004 Report Posted November 4, 2004 George Orwell was such a genius. Is that his picture, right above your post? He was one strange-looking dude. It actually is his picture. Even more strange, his name by birth was in fact "Exhibit B."
Tchaikofsky Posted November 4, 2004 Report Posted November 4, 2004 Close: Today's session started on an uneventful note with the indices drifting in mixed fashion, seemingly unimpressed by a mixed batch of same-store sales results from the retailers and battling some exhaustion from the election relief rally waged on Wednesday... It wasn't long, however, before the market caught a second wind and started on a fairly broad-based rally that took the closing bell to bring to an end... The catalyst for the advance was a pullback in crude prices that began in modest proportion at first and then grew to something material by the end of the trading session... To that end, crude futures dropped $2.06 to $48.82/bbl... The sharp drop was attributed to several factors, including a growing comfort level with the supply situation, technical selling interest, and the unwinding of speculative positions... Separately, we would argue that rumors of Yasser Arafat's death (later refuted by a French hospital) also created a presumption among energy traders that there might be a window of opportunity for improved relations in the Middle East that would bode well for supply from the region... =============== GOOG overboard on Island! Just printed $180!
purdymouth Posted November 4, 2004 Report Posted November 4, 2004 GOOG overboard on Island! Just printed $180! if QCOM breaks 37, I'd say that it's broken trend and in trouble
Sudaca Posted November 4, 2004 Report Posted November 4, 2004 :shocked It doesn't get much clearer than this: ALL MAJOR INDEXES ON "BUYS"
DrStool Posted November 4, 2004 Report Posted November 4, 2004 Buck Sets 9 Year Low Breaks 12 Year Support Line World Votes "No", With Dollars Uncle Buck and the Long Bong Hit, including short and long term updated charts and price targets, is now loaded. Take a subscribatory and get the latest whiff of Uncle Buck and the Long Bong Hit. 30 Day Intro Subscribatory. Just $16.99! Get In RIGHT NOW!
Drano Posted November 4, 2004 Report Posted November 4, 2004 GOO has "recovered" a little, to 181.10. Only down 10.61 (5.54%) for the day. N. Ron --
Guest Posted November 4, 2004 Report Posted November 4, 2004 I'll go with Exhibit C. While its not nearly as attractive to look at, I'm sure it required less silicon to produce.
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