A gold mine is a hole in the ground with a liar on top–Mark Twain The above chart illustrates how historically cheap gold mining equities are to gold. Not since the Great Depression and Pearl Harbor have equities been so cheap on market cap to production, reserves and cash costs. See the XAU (Index of gold and silver miners) below as a percentage of the gold price–currently below the Great Recession lows of 2008:...
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ProShares is coming up with yet another Exchange-traded funds (ETF). This time it is a high-yield corporate debt ETF. The new ETF will hedge by taking short positions in U.S. Treasury’s. ProShares Will Be Traded Under The Symbol ‘HYHG’ The High Yield-Interest Rate Hedged ETF from ProShares will be traded under the symbol ‘HYHG’ and will initially list on BATS exchange. In one of the recent filings concerning the new ETF, Bethesda, Md.-based ProShares...
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Carlyle Group LP (NASDAQ:CG) is looking to raise 200 billion yen ($2 billion) with the launch of a third Japan fund, reports Reuters. Carlyle Group’s proposed $2 billion fund is set to succeed its earlier seven-year old fund. Carlyle Group LP (NASDAQ:CG)’s proposal comes in the wake of potential revival in the Japanese market, bolstered by Prime Minister Shinzo Abe’s pledge to boost the country’s struggling economy through a series of aggressive monetary and...
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The web is filled with reports that Greece is recovering, but is it really improving a report from Bloomberg evaluates. Positive News For Greece In good news, euro area’s finance ministers have agreed to provide the bailout funds amounting to 7.5 billion euros ($9.6 billion) to Greece of which 4.2 billion euros were issued over the weekend and the balance will be released in June, provided the country fulfills some conditions. Following the...
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The Cambria ETF Trust and its investment manager, Cambria Investment Management, LP, saw the lauch of the Cambria Shareholder Yield ETF (SYLD) today. This new offering will be an actively managed trust with “shareholder yield” at the forefront of both the funds’ algorithm and management team. “Shareholder yield” is generally comprised of companies that exhibit the following three characteristics: high cash dividends, actively engaging in share buybacks, and companies that are willing to pay...
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Carlyle Group LP (NASDAQ:CG) reported ENI/unit of $1.02 above Street estimates of $0.96, primarily due to stronger than expected performance fees. Higher sequential revenue was driven by stronger performance fees & positive inv income, partially offset by lower fee revenue (-4%, driven by lower mgmt fees). Core expenses (ex perf comp) were higher (+3% q/q, driven by normalizing G&A given the absence of a 4Q insurance beni), which pressured the FRE margin by ~600bps to...
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Since 2008, activity and fundraising have declined drastically in the private equity sector. For this year, a revival may be in the works. Harvard Business School professor Josh Lerner said private equity had a very challenging time over the past few years and that he has seen a modest uptick in deal activity this year. Lerner explains that this is because funds raised before the financial crisis are reaching their “use it or lose...
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Kweku Adoboli, a former UBS AG (USA) (NYSE:UBS) trader, confessed via an email that he was, indeed, guilty of cooking the accounting books while he was employed by UBS. According to Reuters, he is currently on trial in a case for allegedly falsifying books, and commiting fraud. Adoboli, who is 32, sat in court as the prosecution, led by Sasha Wass, read an email, which was sent by Adoboli to a colleague on September...
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Protégé Partners LP is a $2.6 billion fund of funds located in New York. The fund was down 0.7% in the fourth quarter, and 6.3% for 2011. Since inception in 2002, the fund has returned a cumulative 81%. Many of the firms’ biggest winners were funds which shorted Chinese fraudulent companies trading on US exchanges. Other big winners included; event driven special situation funds, event driven activist funds, energy and healthcare funds. The fund...
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Brevan Howard Mater Fund, incorporated in “CaymanIsland”, has become more risky as it hires aggressive traders and analysts in their team. During 2011, the company has appointed more than 30 traders and analysts from the market and gave them full authority to trade and float aggressive investment ideas. The investment mangers: The group has recruited smart, talented and experienced traders from the market. The introduction of Volker rules gave Brevan Howard the chance,...
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Phil Falcone’s troubles appear to have extended past legal and political ones in 2011. He also suffered huge losses in his hedge fund, Harbinger Capital Partners LLC. According to Bloomberg, Falcone’s fund lost 47 percent in 2011. The majority of its decline came from his Capital Partners Offshore Fund I highly-publicized LightSquared Inc. investment. The company is currently awaiting Federal Communications Commission (FCC) approval as it undergoes a review that shows the company’s system interrupts GPS equipment found...
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