What does George Soros see in Lehman Brothers?
Last year was a sweet comeback year for George Soros. His fund was on fire. And he seemed to really understand the credit markets and the effect the temblors would have on Wall Street firms. This made his recently accumulated 10 million share stake in Lehman Brothers all the more puzzling. So what does he see? Well, as the Motley Fool notes, this could be a short term bet. The battered shares, at less than half of book value, may be due for a dead-cat like bounce (we may have seen it already, in fact). Or he may be betting that embattled CEO Dick Fuld can manage his way out this mess. Then again, he may discern something that we mortals can’t. Of course, he’s not guaranteed a win with this bet. Value buying hasn’t been a winning strategy when it comes to financials.
For more:
- here’s the article
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Man Group aims for U.S.
Man Group has thrived in London, but New York beckons like never before. And the hedge fund giant is determined to finally make inroads in what could be a very lucrative market. Uwe Eberle, CEO of the U.S. arm since December 2007, thinks the firm can compete with the likes of the Blackstone Group and other brand names. And, as Alpha reports, he scoffs at the idea that Man is little more than an efficient gatherer of assets. The firm may need a more appropriate product line-up; its specialty is products that guarantee to preserve capital. And it may need a bigger presence in the consultant universe. Eberle is addressing all of that, but he has a long road to travel at a very tough time. A flight to quality seems to be underway that will make it that much harder for outsiders to break in. Of course, good returns will open doors.
For more:
- here’s the Alpha article
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Today’s Headlines
Deutsche plans to launch ETFs across Asia
HONG KONG (Reuters) - Deutsche Bank aims to launch exchange-traded funds (ETFs) in at least three Asian markets within six months, with the aim of becoming a top-three player in the region by 2011.
JPMorgan India plans first globally-invested fund
MUMBAI (Reuters) - The Indian fund unit of JPMorgan plans to launch a fund investing in Middle East, Africa and emerging Europe, joining the likes of ING and Mirae, who are looking to offer global diversification to domestic investors.
Mass. urges Fidelity to buy back auction-rate debt
BOSTON (Reuters) - The top Massachusetts securities regulator urged Fidelity Investments on Tuesday to repurchase auction-rate securities that it sold to clients who are now stuck will illiquid investments.