Kyle Bass says it’s all going to end through war

Kyle Bass is notorious for his provocative statements and one of his most provocative ones is his speech which he gave at AmeriCatalyst in 2011. He then presented his opinion on the short yen which now gained some credibility as the yen continues to plummet but yet this is just a single thing in...

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"The Bubble" coming in spring 2013

Notorious investor Marc Faber is included in a new film connected to the ongoing financial crisis. Faber is just one of a long list of interviews in the documentary “the Bubble”, which interviews the financial experts who predicted the crash in 2008 and asks them what will follow...

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Peter Schiff on rewinding taxes

As “liberal pundits” have suggested rewinding 2013 taxes to the 1950s, famous economist Peter Schiff comments that this will manifest in the rich paying even less money than they do now. Prominent figures like the columnist of The New York Times Paul Krugman and Warren Buffet has recently...

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Kyle Bass on France and Japan

Hayman Capital’s founder Kyle Bass has recently spoken at the AC2012 The Entanglement KB being the key speaker of the event. He emphasized on central banks’ bloated balance sheets. Moreover, he talked about Japan and Europe but he did not mention anything about his investments in non agency...

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Ray Dalio’s forecast for 2013

The founder of Bridgewater Associates Ray Dalio has spoken his mind on the future of 2012 economy. Firstly, Dalio is of the opinion that stocks will most probably fare better than bonds. Moreover, in his opinion, risk premiums need to fall as they have maxed out. Furthermore, he has enumerated...

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Zamansky & Associates investigating Baupost Group

Seth Klarman’s hedge fund Baupost Group is being investigated by Zamansky & Associates concerning its investment in a mega-quarry in Canada. The firm is interested in whether Baupost has violated its fiduciary responsibilities when having invested in the risk venture. In 2006 Baupost Group...

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Marc Faber’s presentation

Gloom Boom & Doom Report publisher Marc Faber is notorious for his pessimistic economic forecasts. In a recent presentation in Hong Kong, China Faber offered 44 charts which makes him quite pessimistic when it comes to the global economy. The charts include stocks and commodities, trade and...

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What stocks did T.Boone Pickens sell?

It is well known that T.Boone Pickens’ fortune is made up of energy and now he concentrates a portion of his wealth in investing in energy stocks with BP Capital. He has sold 5 large holdings as for Q3 2012. The first holding which Pickens sold is EnCana Corporation. The company used to be...

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Nouriel Roubini on Greece

Nouriel Roubini has quite an interesting view on how the ruling of Judge Thomas Griesa on the sovereign debt payment could affect the whole world and Greece in particular. Paul Singer bought all Argentina bonds in 2011 when the country’s economy collapsed and now he wants his money. But...

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Sky Power Solutions Corp (SPOW)

There is a new star on the horizon – Sky Power Solutions or SPOW. This company focuses on the act of developing and marketing vehicles that are lithium-powered, products and even residencies. Everything you can think of – mopeds, scooters, motorcycles, bicycles, homes, cars – everything...

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John Paulson blames Europe for his failure

The notorious hedge fund manager John Paulson, who has been getting crushed these years and who made a fortune in the time of the downturn, blames Europe for the poor performance of his fund – Paulson & Co. Paulson now manages 20 billion dollars in hedge fund has told that his failure is...

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Mario Draghi on the new Anglo deal

The chief of the European Central Bank Mario Draghi has ruled out the deal for Anglo Irish Bank. He commented that such a deal would probably recast the debts of the Anglo Irish Bank and would break EU law. Moreover, he added that it is not a done deal for the ECB. Furthermore, the illegal...
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Julia Hayden

Kyle Bass’ recent changes as for Q3

Not so long ago Kyle Bass has  said that now is probably the hardest time to invest, also adding that he is of the opinion that Harry Reid and Nancy Pelosi do want the United States to go over the fiscal cliff because of political reasons.

Half of Bass’ hedge fund Hayman Capital is in subprime bonds, which Bass deems as “bulletproof.’ Moreover, he sold out of 6 stocks for Q3 – Tellabs, GasLog Ltd, Magnum Hunter Resources Corporate, Whiting USA Trust II, Alcatel-Lucent and Dynegy. He is now left with stocks valued at 70.32 million dollars which include 2 new ones: Sealy Corporate and Hyatt Hotels Corporate.

Kyle bought 323, 250 shares of Hyatt Hotels for 38 dollars per share on average. This corresponds to 18.5 per cent of his portfolio. The shares have gained 23.5 per cent as for November 2009.

Hyatt Hotels, a global hospitality company, had revenue increase annually from 3.3 billion dollars in 2009 to 3.7 billion dollars in 2011. 42 million dollars was the net loss in 2009, which afterwards had a net gain of 113 million dollars in 2011.

For the past 3 years Hyatt Hotels has been producing free cash flow. Its cash is 1.6 billion dollars and its debt and long-term liabilities are of 2.2 billion dollars. The company has a P/S of 1.5, a P/B of 1.2 and a P/E of 45.2.

In Q3, Hyatt Hotels repurchased 911,244 shares at an average of 38.78 dollars per share, with a total cost of 35 million dollars.

Source: GuruFocus.com

Kyle Bass bought 3,817,860 shares of Sealy Corporate for 2 dollars per share on average. This equates to 11.8 per cent of his portfolio.

Three months ago Tempur-Pedic announced that it was acquiring the bedding manufacturer – for 2.20 dollars per share. The two companies expect their deal to close in the first half of 2013.

Sealy Corporate is now trading for 2.19 dollars per share after its increase of 27.33 per cent year to date.

Source: Kyle Bass’ recent changes as for Q3

Nouriel Roubini believes 2013 will be disastrous

In a recent interview with Bloomberg, famous economist Nouriel Roubini shared his thoughts on the fiscal cliff and global economy. He believes that there is a chance a perfect storm could crash the economy in 2013.

This however is not Roubini’s baseline scenario. His baseline scenario includes low economic growth and recession in advanced economies – like the U.K., the euro zone or Japan but not in the United States.

If a fiscal cliff occurs in the USA a perfect storm could follow. This would plunge the United States into recession. Moreover, this could happen if the crisis in the euro zone gets worse and if Greece exits the European Union, if there is a hard landing in China and last but not least, if a war starts in the Middle East between Iran and Israel with oil prices going to 200 dollars a barrel.

The thing which Roubiniis the most concerned about is the conditions in the euro zone. According to recent data, the European Union has already gone into a double-dip recession. Roubini also predicts that nations such as Cyprus, Italy and Spain will remain in recession in the course of 2013 and beyond.

Nouriel Roubini is confident about 2013 as he cites the front-loaded fiscal austerity, the low levels of business, the credit crunch by banks and the overvalued euro.

You can watch the full interview with Nouriel Roubini below:

 

Source: Nouriel Roubini believes 2013 will be disastrous

The Giant Money Palace of Ray Dalio

The founder of Bridgewater Associates Ray Dalio, is a man in a hurry. He has many errands to run such as enforcing radical transparency, shuttling taxidermied birds and last but not least, wooing clients.

It is not surprising, thought, that the hedge fund legend has built a helipad into his plans for the new headquarters of Bridgewater in Stamford, Connecticut.

According to the Stamford Advocate, the Rayplex will be easily associated with a palace if it is built the way he intends to:

“Made up of two long, curved buildings joined in the center by bridges and paths, the structure is poised to become the most striking presence on the Stamford coastline. The project’s goal, according to the coastal site plan application, is “to house a corporation in an environment that fosters personal interaction and a strong connection to the living world.”

In addition to the helipad, the headquarters will have a marina, a restored estuary and a floating recreational barge.

Many people, however, have objected to the idea of the campus being much bigger that it was initially proposed.

Source: The Giant Money Palace of Ray Dalio

A trouble for QE3

Ben Bernanke, Photo: Bloomberg

The Fed’s decision to implement a third round of quantitative easing (QE3) has raised 3 very important questions concerning the economic growth of the USA, whether it will bring about an increase in risky assets or its effect on GDP (gross domestic product) will be similar or somewhat different.

Many argue that the effect of QE3 is more powerful than that of QE1 and QE2. Whilst the previous rounds of quantitative easing have been associated with an increase in equity prices, the duration and size of QE3 are somewhat more substantial.

Moreover, the credit channel seems not to be outperforming these days, as banks hoarded the extra liquidity from the quantitative easing, which created excess reserves instead of increasing lending.

The only way in which the QE can be transmitted to real economy is the effect of an equity market increase. However, there is an argument that the QE3 will contribute to the rise in equity prices. If such thing requires a significant growth recovery of the GDP, it’s tautological to be said that if equity prices rise enough, he result in the increase of GDP justifies the rise in asset prices.

As a whole, the third round of quantitative easing reduces the risk of an economic contraction but it’s highly unlikely that it will bring about a sustained recovery. In the short run, the latest round will contribute to some investor’s taking risk and it will also stimulate asset reflation.

A trouble for QE3