http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-segarra-shares-city-priorities-with-governor/
MAR10
http://www.norwalkplus.com/nwk/information/nwsnwk/publish/Local_2/Segarra-shares-city-priorities-with-governor_np_12110.shtml
Mar 9, 2011 – 7:58 AM
By Hartford Mayor Pedro Segarra’s office
In a letter sent to Governor Dannel P. Malloy on Tuesday, Hartford Mayor Pedro E. Segarra outlined the City’s vision, priorities and initiatives that will help grow the local and regional economy and serve to substantially improve Connecticut’s Capital City. In his letter, Mayor Segarra referenced the Governor’s background and achievements as a former city mayor as part of his core knowledge and understanding that urban centers will play a critical role in turning around the state’s economy.
“Hartford’s success is Connecticut’s success. By moving forward on my immediate and long-term strategies, we will make Hartford the center of medical research and technology, continue to make our students more competitive in the global job market, and further establish Hartford as the state’s and region’s Arts center. Connecticut’s Capital City is perfectly positioned to help small and large businesses create jobs, enhance the City’s and the State’s quality of life, and become a choice tourist destination. My goal is to continue making Hartford a great place to live, work, play and raise a family,” said Mayor Segarra.
In addition to defining a long-term vision for the City, there are several capital and infrastructure projects that the Mayor brought to the Governor’s attention including:
1. Swift Factory: Through strong partnerships, a vacant factory will be turned into a vibrant multipurpose facility and rejuvenate a North End neighborhood;
2. Coltsville: Continue to work with the Congressional delegation to have this area designated as a national park and securing federal and/or state funding for façade improvements;
3. XL Center: The current management contract runs out in 2013, at which point the City will assume responsibility of this facility. The Mayor and his administration are in the process of laying the groundwork to make this a more vibrant and desirable venue for sports and entertainment events;
4. iQuilt: This innovative initiative crafted by The Bushnell, The Greater Hartford Arts Council, and the City of Hartford intends to knit together our wonderful social and cultural centers and enhance pedestrian routes to promote economic growth and redevelopment in the Capitol district;
5. 101 Pearl Street: The Mayor and city officials are actively pursuing creative options that would benefit the Downtown area as well as neighboring tenants;
6. Albany Avenue/Route 44: A state highway and main artery in the North End, working in conjunction with MDC to aggressively pursue funding for streetscape that would prove critical to community vibrancy;
7. Capitol Avenue: Through the Greening of America’s Capitals grant received from EPA, we are poised to work with appropriate state officials to transform areas surrounding the State Capitol to add green space, more appealing sightlines, and increased sustainability;
8. New Britain to Hartford Busway: This project will improve travel to and from the city, create about 4,000 jobs, and represent the state’s first rapid-transit system. While the City is still firm in its position to not disrupt operations at Aetna and The Hartford, this project would revitalize Asylum Hill neighborhood and reduce traffic on I-84 and I-91;
9. Lyric Theatre: A historic theatre in the Frog Hollow neighborhood that the Mayor has targeted for restoration and the future home of the Puerto Rican Cultural Center.
Other long-range projects mentioned include the Hartford Viaduct and high-speed rail. Mayor Segarra emphasized that through partnerships and a collaborative approach at the community, city, state, and federal levels, these projects will improve the quality of life for residents throughout the city, address environmental concerns, and provide employment opportunities for years to come.
Thursday, July 28, 2011
Shaw Capital Working Management Tips & Articles: Rimage: A Call To Action By A Shareholder
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-rimage-a-call-to-action-by-a-shareholder/
MAR10
______________________________________________________________
http://www.gurufocus.com/news.php?id=125175
Mar. 08, 2011 | Filed Under: RIMG
Dear Members of the Board:
As shareholders of Rimage Corporation (RIMG), Schacht Value Investors demands a change in the company’s strategic direction and capital allocation. On behalf of our clients, who beneficially own 65,010 shares of Rimage, we request:
* A renewed focus on core business & organic initiatives.
* An end to the search for acquisition targets.
* A special dividend of at least $100 million, or $10/share.
* Engagement of investment bankers about a sale of Rimage.
The company’s enormous cash balance, which currently represents 80 percent of the company’s market capitalization, is its largest source of shareholder value. Recent statements and actions by management raise serious concerns about the intentions for this capital. Over the past year, it has become increasingly clear that Rimage’s leadership will primarily use the cash to pursue an “option” that includes acquisitions and a new “content delivery platform”.
We disagree strongly with this direction.
The current market price of Rimage shares implies a value of $140 million. Two components contribute to this value: a profitable core business that generates significant free cash flow, which at the current market price carries a value of under $30 million, and at least $100 million in cash that investors could redirect without affecting the operation and value of that core business. Even if the core business declines, by any measure, its value should far exceed the $30 million currently being assigned.
Why does the market attribute such a paltry valuation to the core business? The market assigns a negative value to the aforementioned “option” that management hopes to pursue. While management may believe that the option represents the best use of company cash, the market correctly assumes that the option will instead destroy shareholder wealth. In fact, CEO Sherman Black reinforced the market’s view only last week:
We have not given any financial estimates, because we don’t have a firm business plan that we can share with you at this time. What we have shared with you, Steve, is that we have an existing business that we feel comfortable is going to continue to generate cash flow.
We could not have said it better ourselves. Everything outside the core business is just an expensive experiment, a speculation with shareholder capital that we do not and will not support.
Focus on the Core Business
The operating portion of Rimage should be the largest component of enterprise value and the focus of management’s efforts. Management may feel “comfortable (that it) is going to continue to generate cash flow”, but the “option” is a major distraction that jeopardizes this progress.
Furthermore, instead of throwing an undefined amount of cash at the promised “content delivery platform,” management should seek further organic growth in areas that truly relate to the existing business. By their own admission, management does not have a firm plan for their new business efforts. These ventures are ill-defined and promise to consume unknown quantities of shareholder capital.
To be clear, we do not oppose investing for the future. Rather we question the nature and extent of the needed investment. The Board of Directors must resist the institutional imperative to spend the enormous store of wealth.
End the Search for Acquisitions
If we were to write a book entitled “Successful Corporate Acquisitions”, it would be a very slim text. The chapter covering technology companies would be slight to non-existent. Sherman Black acknowledged this during the 4th Quarter 2009 earnings conference call:
I can provide you with a lot of data that says companies that do what you just suggested [acquisitions] actually fail. And when you start looking multiple rings away from your core, your chances of success go way down. And that’s been documented in many, many cases. I would rather – if I thought that’s where I was going to go, I’d rather give the money back to the shareholders and let them decide where they want to take their investments.
This remark reassured us as investors, but it has started to ring hollow in light of recent statements and developments. First and foremost, the company hired an investment bank to explore acquisition targets. We are reminded that you never ask a barber if you need a haircut!
Next, the Board of Directors this week changed management incentive compensation so as to actually encourage acquisitions. The company did not discuss or even identify this critical change during the most recent earnings conference call. We thus question the ability of the current Board of Directors to represent investor interests. To encourage behavior that will likely destroy shareholder wealth strikes us as irrational.
For at least a year, investors have questioned management (publicly and privately) about capital allocation plans, particularly in regard to Rimage’s enormous and growing cash balance. Initially, management asked for time to formulate a plan, citing their short time on the job. More recently, it hinted at a plan that remains undisclosed, ill-defined, or both. Nonetheless, management assured shareholders that the cash is not burning a hole in the corporate pocket.
Hiring an investment bank and changing compensation incentives confirms investors’ worst fears. Yet the Board of Directors expects us to sit passively, content with the cash balance in the hands of management, despite signs of imminent value destruction.
Despite the general lack of transparency, one thing is abundantly clear: there are no plans to disgorge excess capital back to shareholders, where it is desired and where it belongs.
Given the checkered history of corporate deal making, this should be the first option considered, not the last.
Shareholder after shareholder has raised the issue of a special dividend. Management has dismissed us every time, with excuses, platitudes, and outright condescension. Just review the enclosed litany of exchanges regarding Rimage’s cash over the last 5 quarters (attached).
Management forgets that investors own this capital. Yet management ignores investor calls for a pro-rata share of our own cash, in favor of management ambitions, unspecified customer requests, a call for growth by the Board of Directors, and whatever gem our new investment bankers may uncover. We should not have to wait at the end of the line for our own capital.
If shareholders needed further evidence of the company’s intentions, we need only cite Sherman Black’s recent statement that accelerating growth at Rimage “will require some inorganic activity, and we’re looking at those options”. Such veiled references to acquisitions only provide further proof that management understands the unpopularity of the “acquisitions first” course.
Declare a Special Dividend
Numerous academic studies and countless examples show clearly that large excess cash balances erode management discipline and shareholder returns. Yet management ambitions often override financial concerns when shareholders fail to intervene. Even Warren Buffetthimself has weighed in on these issues saying he prefers smaller companies with higher returns on capital to bigger ones with lower returns.
Investors will not allow Rimage to become a venture capital fund. Most of Rimage’s shareholders are professional investors with a far greater capability to reinvest this capital, with the track records to prove it. Investors, including Schacht Value, have a wider choice of possible investments outside the company’s rather specific area of technology.
The company could easily return at least $100 million to shareholders and still have more than enough cash for organic opportunities and working capital. Even a distribution of this size would leave some $16m in cash to support $80m-$85m in 2011 sales. Management must demonstrate why they could not operate the current business and invest for the future with this level of remaining cash (post distribution), ongoing free cash flow, and a debt free balance sheet.
We therefore request that the Board declare a special dividend of at least $100 million. This special dividend would be additive to the regular dividend, not a replacement.
Investigate Possible Company Sale
With a low enterprise value multiple, large cash balance, and steady free cash flow capabilities, Rimage makes a natural target, not an acquirer. The only reason to hire an investment banker would be to sell the company. We can’t name a single “minnow-swallows-whale” acquisition that succeeded. Even “bolt-on” acquisitions are a mixed bag in terms of success.
Thus, in the interest of exploring all avenues of shareholder value maximization, we request that the Board of Directors engage an investment bank to solicit offers for Rimage. The best option for shareholders may well be a sale of the company, but we won’t know unless the Board of Directors explores the possibilities.
Further Comments
In anticipation of one response to our request, let us acknowledge the company’s steps to respond to shareholder discontent: engaging in modest share repurchases and declaring a regular dividend. These decisions, however, do not address the huge amount of cash in question or the risky steps being taken elsewhere in the name of growth.
For instance, despite the recently announced buyback activity, shares outstanding have actually increased. Clearly, the benefit of the share repurchases has not accrued to shareholders. Instead, it represents a wealth transfer (via stock options) to employees, making what was implicit explicit. Management only uses the share repurchases to the extent needed to offset option dilution. Whatever the portrayal, this is not a serious effort to return capital to shareholders.
Investors welcome a regular dividend as a necessary step for Rimage, but it does not address the company’s outsized cash balance. Barring any special dividend, cash will likely continue to grow, unless management wastes it on an acquisition.
So when it comes to addressing the cash hoard and/or returning a significant amount of cash to shareholders, the above activities are merely window-dressing.
Conclusion
It is time the Board of Directors upholds its fiduciary duty to protect shareholders from the management team’s ambitions, directing them to run the business at hand. While day-to-day operations may not have the glamour and intrigue of so-called “strategic matters”, Rimage investors believe they are a better use of management’s time, and our money.
Send a clear signal to existing shareholders and the wider investment community that Rimage will not burn its cash in a misguided attempt to discover the next “big thing”. The Board of Directors must consider all options for increasing value, including a sale of the company. In the meantime, the company must return excess cash to its owners.
Leave eager investment bankers and their shopping lists for others. By doing so, you will distinguish Rimage as a true steward of shareholder capital and likely cause a positive reappraisal of the company’s value.
In short, we trust management to run its existing business, not to allocate over $100 million in shareholder capital on new ventures.
Numerous concerned shareholders have patiently tried to work with management to address capital allocation. Our reasonable concerns have fallen on deaf ears. For this reason, we have lost confidence in the company’s intentions and abilities in regard to our capital.
We therefore appeal to the Board of Directors to weigh in. Please fulfill your obligation to protect shareholder value. By considering only acquisitions and token displays of affection for shareholders, directors risk being held accountable by investors for any destruction of shareholder value that results.
We await your response.
Sincerely,
Henry W. Schacht, CFA
Schacht Value Investors, LLC
P.O. Box 777
Notre Dame, IN 46556
574-273-9846
www.schachtvalue.com/rimage
_________________
Henry W. Schacht, CFA is the founder of Schacht Value Investors, an investment management firm serving individuals and institutions. He currently serves as President and Chief Investment Officer. He earned his MBA at the University Of Chicago Graduate School of Business and a BBA in finance from the University of Notre Dame. Mr. Schacht is a member of the Association for Investment Management & Research (AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).
MAR10
______________________________________________________________
http://www.gurufocus.com/news.php?id=125175
Mar. 08, 2011 | Filed Under: RIMG
Dear Members of the Board:
As shareholders of Rimage Corporation (RIMG), Schacht Value Investors demands a change in the company’s strategic direction and capital allocation. On behalf of our clients, who beneficially own 65,010 shares of Rimage, we request:
* A renewed focus on core business & organic initiatives.
* An end to the search for acquisition targets.
* A special dividend of at least $100 million, or $10/share.
* Engagement of investment bankers about a sale of Rimage.
The company’s enormous cash balance, which currently represents 80 percent of the company’s market capitalization, is its largest source of shareholder value. Recent statements and actions by management raise serious concerns about the intentions for this capital. Over the past year, it has become increasingly clear that Rimage’s leadership will primarily use the cash to pursue an “option” that includes acquisitions and a new “content delivery platform”.
We disagree strongly with this direction.
The current market price of Rimage shares implies a value of $140 million. Two components contribute to this value: a profitable core business that generates significant free cash flow, which at the current market price carries a value of under $30 million, and at least $100 million in cash that investors could redirect without affecting the operation and value of that core business. Even if the core business declines, by any measure, its value should far exceed the $30 million currently being assigned.
Why does the market attribute such a paltry valuation to the core business? The market assigns a negative value to the aforementioned “option” that management hopes to pursue. While management may believe that the option represents the best use of company cash, the market correctly assumes that the option will instead destroy shareholder wealth. In fact, CEO Sherman Black reinforced the market’s view only last week:
We have not given any financial estimates, because we don’t have a firm business plan that we can share with you at this time. What we have shared with you, Steve, is that we have an existing business that we feel comfortable is going to continue to generate cash flow.
We could not have said it better ourselves. Everything outside the core business is just an expensive experiment, a speculation with shareholder capital that we do not and will not support.
Focus on the Core Business
The operating portion of Rimage should be the largest component of enterprise value and the focus of management’s efforts. Management may feel “comfortable (that it) is going to continue to generate cash flow”, but the “option” is a major distraction that jeopardizes this progress.
Furthermore, instead of throwing an undefined amount of cash at the promised “content delivery platform,” management should seek further organic growth in areas that truly relate to the existing business. By their own admission, management does not have a firm plan for their new business efforts. These ventures are ill-defined and promise to consume unknown quantities of shareholder capital.
To be clear, we do not oppose investing for the future. Rather we question the nature and extent of the needed investment. The Board of Directors must resist the institutional imperative to spend the enormous store of wealth.
End the Search for Acquisitions
If we were to write a book entitled “Successful Corporate Acquisitions”, it would be a very slim text. The chapter covering technology companies would be slight to non-existent. Sherman Black acknowledged this during the 4th Quarter 2009 earnings conference call:
I can provide you with a lot of data that says companies that do what you just suggested [acquisitions] actually fail. And when you start looking multiple rings away from your core, your chances of success go way down. And that’s been documented in many, many cases. I would rather – if I thought that’s where I was going to go, I’d rather give the money back to the shareholders and let them decide where they want to take their investments.
This remark reassured us as investors, but it has started to ring hollow in light of recent statements and developments. First and foremost, the company hired an investment bank to explore acquisition targets. We are reminded that you never ask a barber if you need a haircut!
Next, the Board of Directors this week changed management incentive compensation so as to actually encourage acquisitions. The company did not discuss or even identify this critical change during the most recent earnings conference call. We thus question the ability of the current Board of Directors to represent investor interests. To encourage behavior that will likely destroy shareholder wealth strikes us as irrational.
For at least a year, investors have questioned management (publicly and privately) about capital allocation plans, particularly in regard to Rimage’s enormous and growing cash balance. Initially, management asked for time to formulate a plan, citing their short time on the job. More recently, it hinted at a plan that remains undisclosed, ill-defined, or both. Nonetheless, management assured shareholders that the cash is not burning a hole in the corporate pocket.
Hiring an investment bank and changing compensation incentives confirms investors’ worst fears. Yet the Board of Directors expects us to sit passively, content with the cash balance in the hands of management, despite signs of imminent value destruction.
Despite the general lack of transparency, one thing is abundantly clear: there are no plans to disgorge excess capital back to shareholders, where it is desired and where it belongs.
Given the checkered history of corporate deal making, this should be the first option considered, not the last.
Shareholder after shareholder has raised the issue of a special dividend. Management has dismissed us every time, with excuses, platitudes, and outright condescension. Just review the enclosed litany of exchanges regarding Rimage’s cash over the last 5 quarters (attached).
Management forgets that investors own this capital. Yet management ignores investor calls for a pro-rata share of our own cash, in favor of management ambitions, unspecified customer requests, a call for growth by the Board of Directors, and whatever gem our new investment bankers may uncover. We should not have to wait at the end of the line for our own capital.
If shareholders needed further evidence of the company’s intentions, we need only cite Sherman Black’s recent statement that accelerating growth at Rimage “will require some inorganic activity, and we’re looking at those options”. Such veiled references to acquisitions only provide further proof that management understands the unpopularity of the “acquisitions first” course.
Declare a Special Dividend
Numerous academic studies and countless examples show clearly that large excess cash balances erode management discipline and shareholder returns. Yet management ambitions often override financial concerns when shareholders fail to intervene. Even Warren Buffetthimself has weighed in on these issues saying he prefers smaller companies with higher returns on capital to bigger ones with lower returns.
Investors will not allow Rimage to become a venture capital fund. Most of Rimage’s shareholders are professional investors with a far greater capability to reinvest this capital, with the track records to prove it. Investors, including Schacht Value, have a wider choice of possible investments outside the company’s rather specific area of technology.
The company could easily return at least $100 million to shareholders and still have more than enough cash for organic opportunities and working capital. Even a distribution of this size would leave some $16m in cash to support $80m-$85m in 2011 sales. Management must demonstrate why they could not operate the current business and invest for the future with this level of remaining cash (post distribution), ongoing free cash flow, and a debt free balance sheet.
We therefore request that the Board declare a special dividend of at least $100 million. This special dividend would be additive to the regular dividend, not a replacement.
Investigate Possible Company Sale
With a low enterprise value multiple, large cash balance, and steady free cash flow capabilities, Rimage makes a natural target, not an acquirer. The only reason to hire an investment banker would be to sell the company. We can’t name a single “minnow-swallows-whale” acquisition that succeeded. Even “bolt-on” acquisitions are a mixed bag in terms of success.
Thus, in the interest of exploring all avenues of shareholder value maximization, we request that the Board of Directors engage an investment bank to solicit offers for Rimage. The best option for shareholders may well be a sale of the company, but we won’t know unless the Board of Directors explores the possibilities.
Further Comments
In anticipation of one response to our request, let us acknowledge the company’s steps to respond to shareholder discontent: engaging in modest share repurchases and declaring a regular dividend. These decisions, however, do not address the huge amount of cash in question or the risky steps being taken elsewhere in the name of growth.
For instance, despite the recently announced buyback activity, shares outstanding have actually increased. Clearly, the benefit of the share repurchases has not accrued to shareholders. Instead, it represents a wealth transfer (via stock options) to employees, making what was implicit explicit. Management only uses the share repurchases to the extent needed to offset option dilution. Whatever the portrayal, this is not a serious effort to return capital to shareholders.
Investors welcome a regular dividend as a necessary step for Rimage, but it does not address the company’s outsized cash balance. Barring any special dividend, cash will likely continue to grow, unless management wastes it on an acquisition.
So when it comes to addressing the cash hoard and/or returning a significant amount of cash to shareholders, the above activities are merely window-dressing.
Conclusion
It is time the Board of Directors upholds its fiduciary duty to protect shareholders from the management team’s ambitions, directing them to run the business at hand. While day-to-day operations may not have the glamour and intrigue of so-called “strategic matters”, Rimage investors believe they are a better use of management’s time, and our money.
Send a clear signal to existing shareholders and the wider investment community that Rimage will not burn its cash in a misguided attempt to discover the next “big thing”. The Board of Directors must consider all options for increasing value, including a sale of the company. In the meantime, the company must return excess cash to its owners.
Leave eager investment bankers and their shopping lists for others. By doing so, you will distinguish Rimage as a true steward of shareholder capital and likely cause a positive reappraisal of the company’s value.
In short, we trust management to run its existing business, not to allocate over $100 million in shareholder capital on new ventures.
Numerous concerned shareholders have patiently tried to work with management to address capital allocation. Our reasonable concerns have fallen on deaf ears. For this reason, we have lost confidence in the company’s intentions and abilities in regard to our capital.
We therefore appeal to the Board of Directors to weigh in. Please fulfill your obligation to protect shareholder value. By considering only acquisitions and token displays of affection for shareholders, directors risk being held accountable by investors for any destruction of shareholder value that results.
We await your response.
Sincerely,
Henry W. Schacht, CFA
Schacht Value Investors, LLC
P.O. Box 777
Notre Dame, IN 46556
574-273-9846
www.schachtvalue.com/rimage
_________________
Henry W. Schacht, CFA is the founder of Schacht Value Investors, an investment management firm serving individuals and institutions. He currently serves as President and Chief Investment Officer. He earned his MBA at the University Of Chicago Graduate School of Business and a BBA in finance from the University of Notre Dame. Mr. Schacht is a member of the Association for Investment Management & Research (AIMR), the Investment Analysts Society of Chicago (IASC), and the National Association of Corporate Directors (NACD).
Shaw Capital Working Management Tips & Articles: Ariba to Present at Roth OC Growth Stock Conference
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-ariba-to-present-at-roth-oc-growth-stock-conference/
MAR10
http://www.businesswire.com/news/home/20110309005086/en/Ariba-Present-Roth-OC-Growth-Stock-Conference
March 09, 2011 08:30 AM Eastern Time
2011 ROTH OC Conference
SUNNYVALE, Calif.–(BUSINESS WIRE)–Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced its participation in the Roth OC Growth Stock Conference on Monday, March 14 at the Ritz Carlton, Laguna Niguel. Ariba Chief Financial Officer Ahmed Rubaie will present at 1:30 p.m. ET. A live webcast of the presentation can be accessed on the investor relations section of Ariba’s website at www.ariba.com.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology with the world’s largest web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment. Using the Ariba® Commerce Cloud, businesses of all sizes can buy, sell and manage cash more efficiently and effectively. Over 340,000 companies around the globe use the Ariba Commerce Cloud to simplify inter-enterprise commerce and enhance results. Why not join them? To get on the path to Better Commerce visit: www.ariba.com/commercecloud/
Copyright © 1996 – 2011 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement, Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba Category Management, Ariba Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management, Ariba Contract Compliance, Ariba Electronic Signatures, Ariba StartContracts, Ariba Invoice Management, Ariba Payment Management, Ariba Working Capital Management, Ariba Settlement, Ariba Supplier Information and Performance Management, Ariba Supplier Information Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba’s expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba’s operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba’s results of operations and financial condition; delays in development or shipment of new versions of Ariba’s products and services; lack of market acceptance of Ariba’s existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the impact of any acquisitions, including difficulties with the integration process or the realization of benefits of a transaction; the impact of our disposition, including the potential disruption of our ongoing business; the ability to attract and retain qualified employees; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company’s pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions and dispositions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba’s Form 10-Q filed with the SEC on February 2, 2011.
Ariba, Inc.
Investor Contact:
John Duncan, 650-390-1200
Investor@ariba.com
or
Media Contact:
Karen Master, 412-297-8177
kmaster@ariba.com
MAR10
http://www.businesswire.com/news/home/20110309005086/en/Ariba-Present-Roth-OC-Growth-Stock-Conference
March 09, 2011 08:30 AM Eastern Time
2011 ROTH OC Conference
SUNNYVALE, Calif.–(BUSINESS WIRE)–Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced its participation in the Roth OC Growth Stock Conference on Monday, March 14 at the Ritz Carlton, Laguna Niguel. Ariba Chief Financial Officer Ahmed Rubaie will present at 1:30 p.m. ET. A live webcast of the presentation can be accessed on the investor relations section of Ariba’s website at www.ariba.com.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology with the world’s largest web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment. Using the Ariba® Commerce Cloud, businesses of all sizes can buy, sell and manage cash more efficiently and effectively. Over 340,000 companies around the globe use the Ariba Commerce Cloud to simplify inter-enterprise commerce and enhance results. Why not join them? To get on the path to Better Commerce visit: www.ariba.com/commercecloud/
Copyright © 1996 – 2011 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, Ariba.com, Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba Services Procurement, Ariba Travel and Expense, Ariba Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba Savings and Pipeline Tracking, Ariba Category Management, Ariba Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility, Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management, Ariba Contract Compliance, Ariba Electronic Signatures, Ariba StartContracts, Ariba Invoice Management, Ariba Payment Management, Ariba Working Capital Management, Ariba Settlement, Ariba Supplier Information and Performance Management, Ariba Supplier Information Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.
Ariba Safe Harbor
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Tuesday, July 26, 2011
Shaw Capital Working Management Tips & Articles: Bay Area’s Bacchus Capital Management gets back into wine investing game
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-bay-areas-bacchus-capital-management-gets-back-into-wine-investing-game/
MAR10
Rate this
http://www.bizjournals.com/sanfrancisco/news/2011/03/09/sfs-bacchus-capital-management-gets.html
San Francisco Business Times – by Chris Rauber
Date: Wednesday, March 9, 2011, 4:12pm PST
The Bay Area’s Bacchus Capital Management LLC, an investment and advisory firm specializing in the wine business, says it will provide an unspecified amount of growth capital to Qupé, a Central Coast wine producer.
“Working with the team at Bacchus will provide us with the working capital we need to expand our inventory, our production and our distribution so that we can continue our growth and build on our momentum,” Qupé’s founder, owner and winemaker Bob Lindquist said in the March 8 statement.
Peter Kaufman, a Bacchus principal, told the San Francisco Business Times that Qupé produces about 35,000 cases a year and wants to expand up to 70,000 cases, and “we want to help fund that growth.”
But no one will say anything about the size of the funding package. Kaufman said its range is up to $10 million.
Bacchus was launched in 2007 by co-founder and Managing Partner Sam Bronfman, former president of Seagram Chateau and Estate Wines, Kaufman and Henry Owsley, who are president and chief executive officer, respectively, at Gordian Group LLC, a New York-based investment bank.
Officials describe Bacchus as a San Francisco company, but its corporate office is actually located across the Bay and over the hills in Pleasanton.
Also, until this month, Bacchus hadn’t announced any deals or had much to say for itself since late 2008, when it provided financing to San Francisco’s Cameron Hughes Wine, until now the only investment deal mentioned on its website.
In any case, the two companies said this week that Qupé is at “a critical point in its brand and business evolution,” after three decades of producing Rhône varietals and Chardonnay. The fresh capital from Bacchus will enable the Los Olivos wine producer to expand inventory, production and distribution.
And stay tuned, says Kaufman, because “this is a paradigm for more things we’re looking to do.”
Read more: Bay Area’s Bacchus Capital Management gets back into wine investing game | San Francisco Business Times
MAR10
Rate this
http://www.bizjournals.com/sanfrancisco/news/2011/03/09/sfs-bacchus-capital-management-gets.html
San Francisco Business Times – by Chris Rauber
Date: Wednesday, March 9, 2011, 4:12pm PST
The Bay Area’s Bacchus Capital Management LLC, an investment and advisory firm specializing in the wine business, says it will provide an unspecified amount of growth capital to Qupé, a Central Coast wine producer.
“Working with the team at Bacchus will provide us with the working capital we need to expand our inventory, our production and our distribution so that we can continue our growth and build on our momentum,” Qupé’s founder, owner and winemaker Bob Lindquist said in the March 8 statement.
Peter Kaufman, a Bacchus principal, told the San Francisco Business Times that Qupé produces about 35,000 cases a year and wants to expand up to 70,000 cases, and “we want to help fund that growth.”
But no one will say anything about the size of the funding package. Kaufman said its range is up to $10 million.
Bacchus was launched in 2007 by co-founder and Managing Partner Sam Bronfman, former president of Seagram Chateau and Estate Wines, Kaufman and Henry Owsley, who are president and chief executive officer, respectively, at Gordian Group LLC, a New York-based investment bank.
Officials describe Bacchus as a San Francisco company, but its corporate office is actually located across the Bay and over the hills in Pleasanton.
Also, until this month, Bacchus hadn’t announced any deals or had much to say for itself since late 2008, when it provided financing to San Francisco’s Cameron Hughes Wine, until now the only investment deal mentioned on its website.
In any case, the two companies said this week that Qupé is at “a critical point in its brand and business evolution,” after three decades of producing Rhône varietals and Chardonnay. The fresh capital from Bacchus will enable the Los Olivos wine producer to expand inventory, production and distribution.
And stay tuned, says Kaufman, because “this is a paradigm for more things we’re looking to do.”
Read more: Bay Area’s Bacchus Capital Management gets back into wine investing game | San Francisco Business Times
Shaw Capital Working Management Tips & Articles: Site optimizer HubSpot raises $32M from Google, Salesforce and Sequoia Capital
http://shaw-capitalworkingmanagement.com/2011/03/09/shaw-capital-working-management-tips-site-optimizer-hubspot-raises-32m-from-google-salesforce-and-sequoia-capital/
MAR9
1 Vote
http://venturebeat.com/2011/03/08/hubspot-funding-series-d-32-million/
Matthew Lynley
March 8, 2011
HubSpot, an online marketing and content management suite, announced today that it has raised $32 million from Salesforce, Sequoia Capital and Google’s investing arm, Google Ventures, in its fourth round of funding.
The service “grades” websites and determines how often they will pop up in high spots on search engines — a process called search-engine optimization (SEO). The service also gives smaller- and mid-sized companies tools to quickly create and manage blogs and landing pages for their websites. The analytics part of the software gives companies a way to track the behavior of incoming and outgoing site visitors and tune the website to make them more likely to stay.
Salesforce in particular seems to be throwing around a lot of money lately — the company has made three acquisitions in the past couple of months. It dropped a whopping $212 million on Web-application developer Heroku in December, and then spent an undisclosed amount on email contact manager Etacts. Salesforce also acquired Web-conferencing provider Dimdim for $31 million. The company’s cash reserves dropped more than 50 percent to $424 million, down from around $1 billion in January last year, according to a recent filing with the securities and exchange commission.
Google Ventures, which is a profit-driven investment arm rather than a strategic investment arm for the search giant, probably won’t be taking on any of HubSpot’s tools, said Rich Miner, partner with Google Ventures. But Google does want to offer HubSpot on the Google App Store, according to HubSpot co-founder Brian Halligan. Salesforce, on the other hand, will be working more closely with HubSpot to bring its services into Salesforce’s online customer relationship management (CRM) software.
HubSpot wasn’t planning on raising money in a fourth round, but was convinced by Sequoia Capital’s general partner Jim Goetz to start another deal to become a part of Sequoia’s portfolio, Halligan said. Goetz will join the become a board observer with HubSpot but won’t be an official board member as part of the deal. Hallinger talked about going public the last time the company raised money in 2009, but those plans have apparently gone on the back-burner.
“We think these guys can really help us make a dent in the universe,” Hallinger said. “In terms of going public, we’re too early.”
HubSpot has raised $65 million to date across four funding rounds. Its most recent round, worth $16 million, closed in October 2009. General Catalyst, Matrix Partners and Scale Venture Partners — all existing investors — also participated in the most recent fundraising round. The Cambridge, Mass.-based company was founded in 2006 and has more than 4,000 companies as customers. The company has 192 employees.
MAR9
1 Vote
http://venturebeat.com/2011/03/08/hubspot-funding-series-d-32-million/
Matthew Lynley
March 8, 2011
HubSpot, an online marketing and content management suite, announced today that it has raised $32 million from Salesforce, Sequoia Capital and Google’s investing arm, Google Ventures, in its fourth round of funding.
The service “grades” websites and determines how often they will pop up in high spots on search engines — a process called search-engine optimization (SEO). The service also gives smaller- and mid-sized companies tools to quickly create and manage blogs and landing pages for their websites. The analytics part of the software gives companies a way to track the behavior of incoming and outgoing site visitors and tune the website to make them more likely to stay.
Salesforce in particular seems to be throwing around a lot of money lately — the company has made three acquisitions in the past couple of months. It dropped a whopping $212 million on Web-application developer Heroku in December, and then spent an undisclosed amount on email contact manager Etacts. Salesforce also acquired Web-conferencing provider Dimdim for $31 million. The company’s cash reserves dropped more than 50 percent to $424 million, down from around $1 billion in January last year, according to a recent filing with the securities and exchange commission.
Google Ventures, which is a profit-driven investment arm rather than a strategic investment arm for the search giant, probably won’t be taking on any of HubSpot’s tools, said Rich Miner, partner with Google Ventures. But Google does want to offer HubSpot on the Google App Store, according to HubSpot co-founder Brian Halligan. Salesforce, on the other hand, will be working more closely with HubSpot to bring its services into Salesforce’s online customer relationship management (CRM) software.
HubSpot wasn’t planning on raising money in a fourth round, but was convinced by Sequoia Capital’s general partner Jim Goetz to start another deal to become a part of Sequoia’s portfolio, Halligan said. Goetz will join the become a board observer with HubSpot but won’t be an official board member as part of the deal. Hallinger talked about going public the last time the company raised money in 2009, but those plans have apparently gone on the back-burner.
“We think these guys can really help us make a dent in the universe,” Hallinger said. “In terms of going public, we’re too early.”
HubSpot has raised $65 million to date across four funding rounds. Its most recent round, worth $16 million, closed in October 2009. General Catalyst, Matrix Partners and Scale Venture Partners — all existing investors — also participated in the most recent fundraising round. The Cambridge, Mass.-based company was founded in 2006 and has more than 4,000 companies as customers. The company has 192 employees.
Shaw Capital Working Management Tips & Articles: Molinero Capital Management expands its team
http://shaw-capitalworkingmanagement.com/2011/03/10/shaw-capital-working-management-tips-molinero-capital-management-expands-its-team/
MAR10
http://www.hedgeweek.com/2011/03/09/109382/molinero-capital-management-expands-its-team
Wed, 09/03/2011 – 13:13
Rafael Molinero,Molinero Capital Management
Molinero Capital Management has recruited a new Applied Research Group comprised of three senior researchers. The researchers were previously trading at Louis Dreyfus Commodities and represent on a combined basis about 40 years of trading experience.
Rafael Molinero says: “We always have put an emphasis on quantitative research and also truly believes to be critical of our success. This is a great opportunity for us to work with talented and like minded individuals with whom we share the same values while having complimentary knowledge. We are simply thrilled and look forward to working together.”
The Molinero Capital Management team is now composed of ten people with nine dedicated to Research. Earlier in 2010, Guillaume Dehan joined as Director of Business Development.
Rafael Molinero says: “Guillaume will play a key role in better servicing our existing clients and growing our institutional business. His 10 years of experience, and strong understanding of the industry will prove invaluable in developing our business.”
MAR10
http://www.hedgeweek.com/2011/03/09/109382/molinero-capital-management-expands-its-team
Wed, 09/03/2011 – 13:13
Rafael Molinero,Molinero Capital Management
Molinero Capital Management has recruited a new Applied Research Group comprised of three senior researchers. The researchers were previously trading at Louis Dreyfus Commodities and represent on a combined basis about 40 years of trading experience.
Rafael Molinero says: “We always have put an emphasis on quantitative research and also truly believes to be critical of our success. This is a great opportunity for us to work with talented and like minded individuals with whom we share the same values while having complimentary knowledge. We are simply thrilled and look forward to working together.”
The Molinero Capital Management team is now composed of ten people with nine dedicated to Research. Earlier in 2010, Guillaume Dehan joined as Director of Business Development.
Rafael Molinero says: “Guillaume will play a key role in better servicing our existing clients and growing our institutional business. His 10 years of experience, and strong understanding of the industry will prove invaluable in developing our business.”
Sunday, July 24, 2011
Shaw Capital Working Management Tips & Articles: Harvard’s Crimson Cubs With $43 Billion Dwarf Their Former Endowment Home
http://shaw-capitalworkingmanagement.com/2011/03/07/shaw-capital-working-management-tips-harvards-crimson-cubs-with-43-billion-dwarf-their-former-endowment-home/
MAR7
http://www.bloomberg.com/news/2011-03-02/harvard-s-crimson-cubs-with-43-billion-dwarf-their-former-endowment-home.html
By Gillian Wee - Mar 1, 2011 5:00 PM GMT-1200
Call them the Crimson Cubs.
Adage Capital Management LP, Charlesbank Capital Partners LLC, Convexity Capital Management LP, Highfields Capital Management LP and Regiment Capital Advisors LLC are all Boston- based investment firms run by former endowment managers at Harvard University.
Since leaving the world’s richest school, in Cambridge,Massachusetts, they have climbed into the top ranks of hedge funds and private equity. Altogether the firms oversee more than $43 billion, exceeding Harvard’s $27.6 billion fund. All have beaten their investment benchmarks since inception.
The endowment brain drain began in 1998, triggered in part by the opportunity for its traders to run their own firms and make more money, even as alumni and faculty complained they were paid too much. In 2005, 14 months after seven members of the class of 1969 criticized compensation in a letter to then- President Lawrence Summers, endowment chief Jack Meyerquit, ending a 15-year run, to form Convexity. As financial markets plunged in 2008, Harvard’s investments lost a record 27 percent.
“Spinouts from Harvard Management like Charlesbank have become some of the highest-performing investment managers in the market,” said Lawrence Golub, a Harvard donor and the New York- based chairman of Golub Capital, which manages $4.5 billion in assets as a lender to buyout firms. “It’s an economic loss for Harvard but a windfall for all the partners who are building these great businesses and making way more than they would have within the four walls of Harvard Management.”
Lost Expertise
The departing managers took with them expertise they honed under Meyer, who built an internal trading team that included fixed-income specialists David Mittelman and Maurice Samuels, who joined him at Convexity. Tim Peterson, who started Regiment, managed high-yield bonds. Charlesbank founder Michael Eisenson led an in-house private-equity group at Harvard, while Jonathon Jacobson of Highfields managed equities. Phillip Gross and Robert Atchinson of Adage were equity analysts.
Highfields, started in October 1998, has gained an average of almost 13 percent a year, according to a person with knowledge of the firm. That compares with the 3.6 percent average return, including dividends, by the Standard & Poor’s 500 Index. Adage has outperformed the S&P 500 index by about 3 percentage points annually since the firm began trading in 2001, according to two people with knowledge of its performance.
The people asked not to be identified because the firms don’t make their returns public.
Meyer has outperformed a group of benchmarks based on market indexes by an annual average of 7.7 percentage points since he began trading in February 2006, according to a letter to investors obtained by Bloomberg News.
Crimson Cachet
“The class of ‘69 spent a lot of time arguing over tens of millions in compensation and ended up losing $10 billion,’’ said Steven Drobny, author of ‘‘The Invisible Hands: Hedge Funds Off the Record — Rethinking Real Money.’’
Officials at the funds run by former Harvard managers declined to comment or didn’t return phone calls seeking comment.
The cachet of Harvard — where crimson is the school color and the name of the daily newspaper and the sports teams — helped the former endowment managers recruit investors when they were on their own, said Lou Morrell, a former chief investment officer at Wake Forest University in Winston Salem, North Carolina, who invested with Meyer when he started Convexity with more than 30 endowment employees.
Seed Money
After Jacobson and Eisenson left in 1998, the university considered allowing Harvard Management Co., which oversees the endowment, to manage money for other institutions to minimize future defections. The university, which decided against the move, went on to invest with the managers in exchange for a break on fees. Convexity and Highfields received $500 million apiece, while Regiment got $300 million, according to a person familiar with the firms.
The allure of the Crimson Cubs is similar to that of the Tiger Cubs, a group of funds set up by former traders at Julian Robertson’s Tiger Management LLC or seeded by the billionaire. Robertson founded New York-based Tiger Management in 1990 and built it into one of the world’s largest hedge funds in the late 1990s before returning clients’ money in 2000.
At Harvard, Meyer transformed the investment portfolio from a conventional mix of stocks and bonds into a virtual hedge fund. He also pushed the endowment into hard-to-sell assets such as real estate, private equity and natural resources on the theory that the university could afford to lock up its money in long-term bets with the potential to exceed standard equity and fixed-income returns.
Class of 1969
Meyer, 65, more than quintupled Harvard’s fund to $25.9 billion when he left from $4.7 billion when he started in 1990. Gains averaged 16 percent a year in his final decade. Among the biggest U.S. endowments, that trailed only Yale University, in New Haven, Connecticut, andDuke University of Durham, North Carolina, which each returned 17 percent annually.
Harvard’s class of 1969 said in their November 2003 letter to Summers that the combined $107.5 million earned by the fund’s six top performers was excessive and the money would be better spent on scholarships.
‘‘What we said and continue to believe is that working for an educational institution, we didn’t think it was appropriate for them to be compensated at levels they were being compensated,” said Stanley Eleff, a lawyer in Tampa, Florida, who was part of the group of 1969 graduates who wrote to Summers. “We would never expect Harvard’s football coach to be paid like an NFL coach.”
‘Talented Investors’
Eleff said, “Whether Harvard Management would’ve done better or worse had some of these people remained, I’m not in a position to comment about.”
John Longbrake, a spokesman for the university, said he didn’t have information on fees paid to the former managers who are investing for the school.
“We are pleased that so many talented investors have been drawn to work at Harvard Management Co., and that our organizational model allows us to benefit from their expertise when they were employees and now as external managers,” he said in an e-mail.
In the year ended June 2003, Samuels, who managed non-U.S. fixed-income assets, earned $35.1 million, while Mittelman, who managed U.S. bonds, received $34.1 million. Meyer said when he resigned that scrutiny of Harvard Management’s compensation played a secondary role in his decision.
El-Erian’s Tenure
After a nine-month search, Harvard named Mohamed El-Erian, who oversaw emerging-markets investments at Pacific Investment Management Co., to succeed Meyer. El-Erian resigned after less than two years to return to Newport Beach, California-based Pimco, where he became co-chief executive officer and co-chief investment officer.
In the 12 months ended June 30, 2007, the first full year under El-Erian, Harvard gained 23 percent, compared with the 18 percent average for endowments of more than $1 billion. In his time, the percentage of money Harvard managers handled fell to about 30 percent from as much as 85 percent under Meyer, partly because of the exodus of internal managers.
El-Erian also started allocating money to hedge funds via Mark Taborsky, whom he hired fromStanford University to head investment with outside managers. Within a year, Taborsky’s team revamped Harvard’s group of managers, with some of those relationships forged in exchange for longer lockups of capital, El-Erian wrote in his 2008 book, “When Markets Collide.”
Lehman Crisis
Jane Mendillo was hired as Harvard Management’s CEO in July 2008. Her first year was marked by the collapse of financial markets in the wake of Lehman Brothers Holdings Inc.’s bankruptcy in September of that year.
As the endowment plunged, so did the value of the university’s interest rate swaps, pressuring Mendillo to liquidate investments to extricate the school from a cash squeeze. The university raised money by selling $2.5 billion in bonds in December 2008 and also froze pay for all faculty and nonunion employees that academic year.
After the record decline in the year ended June 2009, investments rose 11 percent in the past year, beating the school’s own benchmark while trailing the returns of a broad group of institutions.
Harvard’s former managers have thrived, except for Sowood Capital Management LP, started by Jeff Larson in 2004 with $500 million from the school. The $3 billion firm lost more than 50 percent as corporate bond and loan markets melted down in July 2007. Larson sold most of its assets to Citadel LLC, the Chicago-based investment firm run by Kenneth Griffin, and unwound its two funds. He spun out Denham Capital, a private- equity firm, before his fund started losing money.
Regiment Capital
The Crimson Cubs are based in the John Hancock Tower, the tallest building in New England, except for Regiment Capital, whose office is a block away.
Adage and Regiment were two of Harvard’s biggest external managers in 2008-2009, according to an internal document. Regiment was listed as one of Harvard’s largest independent contractors on a tax filing for the year ended June 2009, receiving $33.7 million in fees.
Regiment, which generally invests in below-investment grade assets, last year owned leveraged loans, options, credit-default swaps and other securities, according to an investor document.
The firm’s hedge fund gained 7.1 percent in 2010, less than the 14 percent increase of the Citigroup High Yield Index. The fund has returned more than 8 percent annually since its March 2000 inception, beating the gain of the Citigroup benchmark, according to a person familiar with the firm. The firm manages about $6 billion.
‘B or B+’
Highfields, which bets on falling and rising asset prices and invests in companies with large market capitalizations, gained almost 16 percent last year, compared with the 15 percent return by the S&P 500 index. The firm lost 18 percent in 2008, when the S&P 500 lost 37 percent in the worst crisis since the Great Depression, and rebounded 36 percent in 2009, more than the 26 percent increase of the benchmark. In 1998, his last year at Harvard Management, Jacobson earned $10.2 million, making him its highest-paid employee.
Harvard no longer invests with the hedge fund, according to a person familiar with the firm. In a January letter to investors, the firm said “from an investment perspective, I think we earned a B or B+ for 2010” and “in hindsight, we passed on some opportunities that we now wish we hadn’t.” Highfields managed $11.7 billion as of Dec. 31.
Adage, Charlesbank
The biggest Crimson Cub by assets is Adage, which is currently closed to new investors. The firm, with $13.5 billion in assets, gained 15.3 percent last year, compared with the 15.1 percent return by the S&P 500, according to two people familiar with the firm. The fund lost 38 percent in 2008 and regained 41 percent in 2009.
Charlesbank has raised seven private equity funds, starting the first three between 1991 and 1997 when the group was part of Harvard. The funds combined returned an average of more than 22 percent a year through September, according to a person with knowledge of its record.
The firm’s $590 million fifth fund, raised in 2000, was its best performer, returning about 22 percent, beating the 20 percent gain of funds in the top 25 percent as tracked by consulting firmCambridge Associates. Charlesbank’s poorest performing fund, its $985 million pool raised in 2005, has returned about 17 percent, more than the 9.6 percent increase of peers in the top 25 percent as tracked by Cambridge.
Convexity Outperforms
Meyer’s investment strategy fares best in choppy markets, he said in a January annual letter to clients. He told clients the firm beat benchmarks by 5 percentage points last year in a “mediocre” trading climate. The $12.3 billion fund beat its targets by 4.5 percentage points in 2008, before its biggest year in 2009, when it exceeded targets by 20 percentage points.
Harvard Management had an annual average gain of 4.7 percent over the past five years, compared with a 3 percent increase for its internal benchmark.
“The compensation protesters have accomplished none of their goals,” Golub said. “The people they were complaining about are making more money and Harvard’s endowment has less money.”
To contact the reporter on this story: Gillian Wee in New York at gwee3@bloomberg.net
To contact the editor responsible for this story: Christian Baumgaertel atcbaumgaertel@bloomberg.net
MAR7
http://www.bloomberg.com/news/2011-03-02/harvard-s-crimson-cubs-with-43-billion-dwarf-their-former-endowment-home.html
By Gillian Wee - Mar 1, 2011 5:00 PM GMT-1200
Call them the Crimson Cubs.
Adage Capital Management LP, Charlesbank Capital Partners LLC, Convexity Capital Management LP, Highfields Capital Management LP and Regiment Capital Advisors LLC are all Boston- based investment firms run by former endowment managers at Harvard University.
Since leaving the world’s richest school, in Cambridge,Massachusetts, they have climbed into the top ranks of hedge funds and private equity. Altogether the firms oversee more than $43 billion, exceeding Harvard’s $27.6 billion fund. All have beaten their investment benchmarks since inception.
The endowment brain drain began in 1998, triggered in part by the opportunity for its traders to run their own firms and make more money, even as alumni and faculty complained they were paid too much. In 2005, 14 months after seven members of the class of 1969 criticized compensation in a letter to then- President Lawrence Summers, endowment chief Jack Meyerquit, ending a 15-year run, to form Convexity. As financial markets plunged in 2008, Harvard’s investments lost a record 27 percent.
“Spinouts from Harvard Management like Charlesbank have become some of the highest-performing investment managers in the market,” said Lawrence Golub, a Harvard donor and the New York- based chairman of Golub Capital, which manages $4.5 billion in assets as a lender to buyout firms. “It’s an economic loss for Harvard but a windfall for all the partners who are building these great businesses and making way more than they would have within the four walls of Harvard Management.”
Lost Expertise
The departing managers took with them expertise they honed under Meyer, who built an internal trading team that included fixed-income specialists David Mittelman and Maurice Samuels, who joined him at Convexity. Tim Peterson, who started Regiment, managed high-yield bonds. Charlesbank founder Michael Eisenson led an in-house private-equity group at Harvard, while Jonathon Jacobson of Highfields managed equities. Phillip Gross and Robert Atchinson of Adage were equity analysts.
Highfields, started in October 1998, has gained an average of almost 13 percent a year, according to a person with knowledge of the firm. That compares with the 3.6 percent average return, including dividends, by the Standard & Poor’s 500 Index. Adage has outperformed the S&P 500 index by about 3 percentage points annually since the firm began trading in 2001, according to two people with knowledge of its performance.
The people asked not to be identified because the firms don’t make their returns public.
Meyer has outperformed a group of benchmarks based on market indexes by an annual average of 7.7 percentage points since he began trading in February 2006, according to a letter to investors obtained by Bloomberg News.
Crimson Cachet
“The class of ‘69 spent a lot of time arguing over tens of millions in compensation and ended up losing $10 billion,’’ said Steven Drobny, author of ‘‘The Invisible Hands: Hedge Funds Off the Record — Rethinking Real Money.’’
Officials at the funds run by former Harvard managers declined to comment or didn’t return phone calls seeking comment.
The cachet of Harvard — where crimson is the school color and the name of the daily newspaper and the sports teams — helped the former endowment managers recruit investors when they were on their own, said Lou Morrell, a former chief investment officer at Wake Forest University in Winston Salem, North Carolina, who invested with Meyer when he started Convexity with more than 30 endowment employees.
Seed Money
After Jacobson and Eisenson left in 1998, the university considered allowing Harvard Management Co., which oversees the endowment, to manage money for other institutions to minimize future defections. The university, which decided against the move, went on to invest with the managers in exchange for a break on fees. Convexity and Highfields received $500 million apiece, while Regiment got $300 million, according to a person familiar with the firms.
The allure of the Crimson Cubs is similar to that of the Tiger Cubs, a group of funds set up by former traders at Julian Robertson’s Tiger Management LLC or seeded by the billionaire. Robertson founded New York-based Tiger Management in 1990 and built it into one of the world’s largest hedge funds in the late 1990s before returning clients’ money in 2000.
At Harvard, Meyer transformed the investment portfolio from a conventional mix of stocks and bonds into a virtual hedge fund. He also pushed the endowment into hard-to-sell assets such as real estate, private equity and natural resources on the theory that the university could afford to lock up its money in long-term bets with the potential to exceed standard equity and fixed-income returns.
Class of 1969
Meyer, 65, more than quintupled Harvard’s fund to $25.9 billion when he left from $4.7 billion when he started in 1990. Gains averaged 16 percent a year in his final decade. Among the biggest U.S. endowments, that trailed only Yale University, in New Haven, Connecticut, andDuke University of Durham, North Carolina, which each returned 17 percent annually.
Harvard’s class of 1969 said in their November 2003 letter to Summers that the combined $107.5 million earned by the fund’s six top performers was excessive and the money would be better spent on scholarships.
‘‘What we said and continue to believe is that working for an educational institution, we didn’t think it was appropriate for them to be compensated at levels they were being compensated,” said Stanley Eleff, a lawyer in Tampa, Florida, who was part of the group of 1969 graduates who wrote to Summers. “We would never expect Harvard’s football coach to be paid like an NFL coach.”
‘Talented Investors’
Eleff said, “Whether Harvard Management would’ve done better or worse had some of these people remained, I’m not in a position to comment about.”
John Longbrake, a spokesman for the university, said he didn’t have information on fees paid to the former managers who are investing for the school.
“We are pleased that so many talented investors have been drawn to work at Harvard Management Co., and that our organizational model allows us to benefit from their expertise when they were employees and now as external managers,” he said in an e-mail.
In the year ended June 2003, Samuels, who managed non-U.S. fixed-income assets, earned $35.1 million, while Mittelman, who managed U.S. bonds, received $34.1 million. Meyer said when he resigned that scrutiny of Harvard Management’s compensation played a secondary role in his decision.
El-Erian’s Tenure
After a nine-month search, Harvard named Mohamed El-Erian, who oversaw emerging-markets investments at Pacific Investment Management Co., to succeed Meyer. El-Erian resigned after less than two years to return to Newport Beach, California-based Pimco, where he became co-chief executive officer and co-chief investment officer.
In the 12 months ended June 30, 2007, the first full year under El-Erian, Harvard gained 23 percent, compared with the 18 percent average for endowments of more than $1 billion. In his time, the percentage of money Harvard managers handled fell to about 30 percent from as much as 85 percent under Meyer, partly because of the exodus of internal managers.
El-Erian also started allocating money to hedge funds via Mark Taborsky, whom he hired fromStanford University to head investment with outside managers. Within a year, Taborsky’s team revamped Harvard’s group of managers, with some of those relationships forged in exchange for longer lockups of capital, El-Erian wrote in his 2008 book, “When Markets Collide.”
Lehman Crisis
Jane Mendillo was hired as Harvard Management’s CEO in July 2008. Her first year was marked by the collapse of financial markets in the wake of Lehman Brothers Holdings Inc.’s bankruptcy in September of that year.
As the endowment plunged, so did the value of the university’s interest rate swaps, pressuring Mendillo to liquidate investments to extricate the school from a cash squeeze. The university raised money by selling $2.5 billion in bonds in December 2008 and also froze pay for all faculty and nonunion employees that academic year.
After the record decline in the year ended June 2009, investments rose 11 percent in the past year, beating the school’s own benchmark while trailing the returns of a broad group of institutions.
Harvard’s former managers have thrived, except for Sowood Capital Management LP, started by Jeff Larson in 2004 with $500 million from the school. The $3 billion firm lost more than 50 percent as corporate bond and loan markets melted down in July 2007. Larson sold most of its assets to Citadel LLC, the Chicago-based investment firm run by Kenneth Griffin, and unwound its two funds. He spun out Denham Capital, a private- equity firm, before his fund started losing money.
Regiment Capital
The Crimson Cubs are based in the John Hancock Tower, the tallest building in New England, except for Regiment Capital, whose office is a block away.
Adage and Regiment were two of Harvard’s biggest external managers in 2008-2009, according to an internal document. Regiment was listed as one of Harvard’s largest independent contractors on a tax filing for the year ended June 2009, receiving $33.7 million in fees.
Regiment, which generally invests in below-investment grade assets, last year owned leveraged loans, options, credit-default swaps and other securities, according to an investor document.
The firm’s hedge fund gained 7.1 percent in 2010, less than the 14 percent increase of the Citigroup High Yield Index. The fund has returned more than 8 percent annually since its March 2000 inception, beating the gain of the Citigroup benchmark, according to a person familiar with the firm. The firm manages about $6 billion.
‘B or B+’
Highfields, which bets on falling and rising asset prices and invests in companies with large market capitalizations, gained almost 16 percent last year, compared with the 15 percent return by the S&P 500 index. The firm lost 18 percent in 2008, when the S&P 500 lost 37 percent in the worst crisis since the Great Depression, and rebounded 36 percent in 2009, more than the 26 percent increase of the benchmark. In 1998, his last year at Harvard Management, Jacobson earned $10.2 million, making him its highest-paid employee.
Harvard no longer invests with the hedge fund, according to a person familiar with the firm. In a January letter to investors, the firm said “from an investment perspective, I think we earned a B or B+ for 2010” and “in hindsight, we passed on some opportunities that we now wish we hadn’t.” Highfields managed $11.7 billion as of Dec. 31.
Adage, Charlesbank
The biggest Crimson Cub by assets is Adage, which is currently closed to new investors. The firm, with $13.5 billion in assets, gained 15.3 percent last year, compared with the 15.1 percent return by the S&P 500, according to two people familiar with the firm. The fund lost 38 percent in 2008 and regained 41 percent in 2009.
Charlesbank has raised seven private equity funds, starting the first three between 1991 and 1997 when the group was part of Harvard. The funds combined returned an average of more than 22 percent a year through September, according to a person with knowledge of its record.
The firm’s $590 million fifth fund, raised in 2000, was its best performer, returning about 22 percent, beating the 20 percent gain of funds in the top 25 percent as tracked by consulting firmCambridge Associates. Charlesbank’s poorest performing fund, its $985 million pool raised in 2005, has returned about 17 percent, more than the 9.6 percent increase of peers in the top 25 percent as tracked by Cambridge.
Convexity Outperforms
Meyer’s investment strategy fares best in choppy markets, he said in a January annual letter to clients. He told clients the firm beat benchmarks by 5 percentage points last year in a “mediocre” trading climate. The $12.3 billion fund beat its targets by 4.5 percentage points in 2008, before its biggest year in 2009, when it exceeded targets by 20 percentage points.
Harvard Management had an annual average gain of 4.7 percent over the past five years, compared with a 3 percent increase for its internal benchmark.
“The compensation protesters have accomplished none of their goals,” Golub said. “The people they were complaining about are making more money and Harvard’s endowment has less money.”
To contact the reporter on this story: Gillian Wee in New York at gwee3@bloomberg.net
To contact the editor responsible for this story: Christian Baumgaertel atcbaumgaertel@bloomberg.net
Shaw Capital Working Management Tips & Articles: For Delaware’s jobless, emotional capital can also take a hit
http://shaw-capitalworkingmanagement.com/2011/03/07/shaw-capital-working-management-tips-2/
MAR7
http://www.delawareonline.com/article/20110306/BUSINESS/103060372/0/NEWS02/For-jobless-emotional-capital-can-take-hit?odyssey=nav|head
Beth Miller
6:00 PM, Mar. 5, 2011
Almost two years have passed since a human-resources worker came up to Gayle Larson while she was at work in a lab. Could they talk for a minute?
They walked to a conference room, where a few career advisers were waiting. Larson understood then what was happening. A colleague already had been laid off. And soon, she was cleaning out her desk as the woman from human resources stood by.
That tap on the shoulder in May 2009 ended Larson’s job with AET Films, formerly Hercules, where she had worked as a technical research associate for eight years. She was one of about 250 employees trimmed from AET’s payroll as it emerged from bankruptcy.
Larson, 57, has had plenty of company at the unemployment office, where she says she sometimes has waited up to seven hours and never less than two. And plenty of people are in her shoes across the country, too. She was among 14.8 million U.S. residents — 36,100 in Delaware — who were unemployed in 2010.
Now, she’s getting her house ready to sell. It was her parents’ home and she bought and renovated it after her mother died, but she needs to sell it now.
“Before, I always sat down on the first of the month and paid all my bills,” she said. “Now, I sometimes have to call people and say, ‘I can’t pay this week, but when I get my next check, I’ll be able to.’ ”
The stress of unemployment can be excruciating, experts say, making the loss of a job even tougher.
“We’ve got people choosing between car insurance, food, medicine — what do you choose?” said the Rev. Dale Brown, pastor of Union United Methodist Church in Bridgeville, who called for a community prayer meeting after Invista announced a few years ago that it would lay off hundreds at its Seaford plant. That meeting produced a network of church leaders and community volunteers who set up a Job Loss Response Team that for the past two years has offered workshops and other support for job seekers, who have shown up by the hundreds.
“It’s affecting people we used to think of as very stable, those who had really good jobs at one point.”
MAR7
http://www.delawareonline.com/article/20110306/BUSINESS/103060372/0/NEWS02/For-jobless-emotional-capital-can-take-hit?odyssey=nav|head
Beth Miller
6:00 PM, Mar. 5, 2011
Almost two years have passed since a human-resources worker came up to Gayle Larson while she was at work in a lab. Could they talk for a minute?
They walked to a conference room, where a few career advisers were waiting. Larson understood then what was happening. A colleague already had been laid off. And soon, she was cleaning out her desk as the woman from human resources stood by.
That tap on the shoulder in May 2009 ended Larson’s job with AET Films, formerly Hercules, where she had worked as a technical research associate for eight years. She was one of about 250 employees trimmed from AET’s payroll as it emerged from bankruptcy.
Larson, 57, has had plenty of company at the unemployment office, where she says she sometimes has waited up to seven hours and never less than two. And plenty of people are in her shoes across the country, too. She was among 14.8 million U.S. residents — 36,100 in Delaware — who were unemployed in 2010.
Now, she’s getting her house ready to sell. It was her parents’ home and she bought and renovated it after her mother died, but she needs to sell it now.
“Before, I always sat down on the first of the month and paid all my bills,” she said. “Now, I sometimes have to call people and say, ‘I can’t pay this week, but when I get my next check, I’ll be able to.’ ”
The stress of unemployment can be excruciating, experts say, making the loss of a job even tougher.
“We’ve got people choosing between car insurance, food, medicine — what do you choose?” said the Rev. Dale Brown, pastor of Union United Methodist Church in Bridgeville, who called for a community prayer meeting after Invista announced a few years ago that it would lay off hundreds at its Seaford plant. That meeting produced a network of church leaders and community volunteers who set up a Job Loss Response Team that for the past two years has offered workshops and other support for job seekers, who have shown up by the hundreds.
“It’s affecting people we used to think of as very stable, those who had really good jobs at one point.”
Shaw Capital Working Management Tips & Articles: Bacchus Capital Management Provides Growth Capital for Qupe
http://shaw-capitalworkingmanagement.com/2011/03/09/shaw-capital-working-management-tips-3/
MAR9
Rate this
http://www.prnewswire.com/news-releases/bacchus-capital-management-provides-growth-capital-for-qupe-117582918.html
SOURCE Bacchus Capital Management, LLC
Wine Industry Investment Firm Announces Deal with Renowned Winemaker
SAN FRANCISCO, March 8, 2011 /PRNewswire/ — Bacchus Capital Management, LLC, a San Francisco-based investment firm focused on providing strategic capital and making private equity wine industry investments, has provided growth capital to Qupe, a leading California Central Coast wine producer.
“Qupe is at a critical point in its brand history and business evolution,” stated Bob Lindquist, Founder and Winemaker of Qupe. “We have spent 30 years producing handcrafted Rhone varietals and Chardonnay from California’s Central Coast. We are proud of the wines we have made and the reputation we have earned. Working with the team at Bacchus will provide us with the working capital we need to expand our inventory, our production and our distribution so that we can continue our growth and build on our momentum.”
“The financing for Qupe reflects the Bacchus Capital Management mission and the opportunity for us in the market today,” stated Sam Bronfman II, Co-Founder of and Managing Partner of Bacchus. “There will always be a demand for super and ultra premium brands as well as unique products across the price spectrum. The opportunity to finance an innovator in the wine industry, a true visionary and one of the country’s great wine-makers, is an ideal transaction for us and an exciting partnership to develop.”
“In today’s challenging financial climate, credit is very hard to come by and wineries are under extreme pressure. Bacchus has established a new model in the industry,” commented Peter Kaufman, Co-Founder and Managing Partner of Bacchus Capital Management. “Providing flexible financing as well as our operational and industry expertise is unique. We look forward to working with the team at Qupe.”
“We are eager to leverage the strategic capital Bacchus is providing,” commented Lindquist. “The Qupe wines are poised to reach an expanded market.”
About Qupe
Qupe is dedicated to producing handcrafted Rhone varietals and Chardonnay from California’s Central Coast. The company employs traditional winemaking techniques to make wines that are true to type and speak of their vineyard sources. The goal of Qupe is to make wines with impeccable balance that can be enjoyed in their youth, yet because of the good acidity from cool vineyard sites can also benefit from ageing. The winery is committed to sourcing grapes from some of the best and most prestigious vineyards in Santa Barbara and San Luis Obispo counties. Qupe was founded by Bob Lindquist in 1982 and remains family-owned. For more information, visit www.qupe.com.
About Bacchus Capital Management
Bacchus Capital Management is an investment and advisory firm co-founded in 2007 by Sam Bronfman II, Peter S. Kaufmanand Henry F. Owsley providing alternative financing and equity capital to United States wineries and wine businesses. Quinton Jay and Rob Rupe are the Managing Directors. Bronfman and Jay bring extensive wine industry experience through leadership positions at Seagram Chateau and Estates, Diageo, Artesa Winery and Vineyards, Etude, Quintessa and Bonny Doon Vineyard. Kaufman and Owsley are leading investment bankers specializing in credit analysis, valuation and restructuring. For more information, visit www.bacchuswinefund.com.
MAR9
Rate this
http://www.prnewswire.com/news-releases/bacchus-capital-management-provides-growth-capital-for-qupe-117582918.html
SOURCE Bacchus Capital Management, LLC
Wine Industry Investment Firm Announces Deal with Renowned Winemaker
SAN FRANCISCO, March 8, 2011 /PRNewswire/ — Bacchus Capital Management, LLC, a San Francisco-based investment firm focused on providing strategic capital and making private equity wine industry investments, has provided growth capital to Qupe, a leading California Central Coast wine producer.
“Qupe is at a critical point in its brand history and business evolution,” stated Bob Lindquist, Founder and Winemaker of Qupe. “We have spent 30 years producing handcrafted Rhone varietals and Chardonnay from California’s Central Coast. We are proud of the wines we have made and the reputation we have earned. Working with the team at Bacchus will provide us with the working capital we need to expand our inventory, our production and our distribution so that we can continue our growth and build on our momentum.”
“The financing for Qupe reflects the Bacchus Capital Management mission and the opportunity for us in the market today,” stated Sam Bronfman II, Co-Founder of and Managing Partner of Bacchus. “There will always be a demand for super and ultra premium brands as well as unique products across the price spectrum. The opportunity to finance an innovator in the wine industry, a true visionary and one of the country’s great wine-makers, is an ideal transaction for us and an exciting partnership to develop.”
“In today’s challenging financial climate, credit is very hard to come by and wineries are under extreme pressure. Bacchus has established a new model in the industry,” commented Peter Kaufman, Co-Founder and Managing Partner of Bacchus Capital Management. “Providing flexible financing as well as our operational and industry expertise is unique. We look forward to working with the team at Qupe.”
“We are eager to leverage the strategic capital Bacchus is providing,” commented Lindquist. “The Qupe wines are poised to reach an expanded market.”
About Qupe
Qupe is dedicated to producing handcrafted Rhone varietals and Chardonnay from California’s Central Coast. The company employs traditional winemaking techniques to make wines that are true to type and speak of their vineyard sources. The goal of Qupe is to make wines with impeccable balance that can be enjoyed in their youth, yet because of the good acidity from cool vineyard sites can also benefit from ageing. The winery is committed to sourcing grapes from some of the best and most prestigious vineyards in Santa Barbara and San Luis Obispo counties. Qupe was founded by Bob Lindquist in 1982 and remains family-owned. For more information, visit www.qupe.com.
About Bacchus Capital Management
Bacchus Capital Management is an investment and advisory firm co-founded in 2007 by Sam Bronfman II, Peter S. Kaufmanand Henry F. Owsley providing alternative financing and equity capital to United States wineries and wine businesses. Quinton Jay and Rob Rupe are the Managing Directors. Bronfman and Jay bring extensive wine industry experience through leadership positions at Seagram Chateau and Estates, Diageo, Artesa Winery and Vineyards, Etude, Quintessa and Bonny Doon Vineyard. Kaufman and Owsley are leading investment bankers specializing in credit analysis, valuation and restructuring. For more information, visit www.bacchuswinefund.com.
Wednesday, July 20, 2011
Shaw Capital Management August Newsletter: Financial Markets Focusing Europe
Published : Thu, 03 Feb 2011 11:46
By : 1888pressrelease.com
Print this Story
(1888PressRelease) February 03, 2011 - The big fall in the euro in recent months is clearly having a significant impact on the performance of the
euro-zone economy.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Factory output expanded at a record pace in April, helped by investment spending associated with the export effort, and overseas demand for European capital equipment, and the trend appears to be continuing. The major beneficiary has been Germany, but other northern member countries are also involved.
However the situation is much less encouraging in Greece, Spain, and Portugal, because they are less competitive in export markets, and are being forced to introduce austerity measures to reduce their fiscal deficits.
Domestic demand across the entire euro-zone remains weak, and so, despite the export performance of some member countries, it seems unlikely that the overall growth rate for the zone this year will reach 2%. The European Central Bank remains reasonably optimistic about prospects; but fortunately it has not moved towards an "exit strategy" that might involve reversing the measures that were introduced to counter the recession.
Short-term interest rates have been left unchanged and close to zero, the programme to provide unlimited three-month loans to the banking system is continuing, and the bank is also still intervening in the markets to buy the bonds of weaker member countries that had been sold heavily because of fears about debt defaults. The bank is therefore continuing to provide support for the system; but it is not really doing enough to offset the concerns about the debt crisis.
Greece remains in the eye of the storm; but there have been increasing concerns about the situation in Spain; and the situation has been made worse by the latest warning from the Fitch Ratings agency that it may take further massive asset purchases by the European Central Bank to prevent the sovereign debt crisis in the area escalating out of control.
Shaw Capital Management August 2010: Financial Markets Focusing Europe - There are fears that Spain will need to follow Greece in requesting help from other member countries and the IMF to enable it to avoid a default, and that Portugal, and perhaps even Italy, may also need to be rescued.
The pressures on the euro will therefore be intense; and whilst there may well be further support from the Swiss National Bank and others, the future of the single currency system clearly remains very uncertain. The latest modest rally in the euro must therefore be treated with great care.
Sterling has recovered from the weakness that developed in May, and is ending the month higher. The economic background in the UK has not provided any real support, and the Bank of England is clearly intending to maintain short-term interest rates at very low levels; but there has been some movement of funds out of the euro into sterling, and the new coalition government in the UK has introduced measures to reduce the massive fiscal deficit that have been well received in the markets and led to an improvement in sentiment.
There is clearly a risk that these latest measures in the Budget will depress the level of activity still further, and fail to solve the fiscal problems; but for the moment it seems that the new government is being given the benefit of the doubt.
The evidence on the performance of the economy ahead of the Budget announcement was still pointing to a very slow recovery in activity.
The manufacturing sector is reasonably buoyant, with exports expanding rapidly; and retail sales also increased more quickly than expected.
But unemployment rose again to 2.47 million, and the latest survey from the CBI indicated that the value and volume of business in the services sector fell, and that further weakness was expected in the second half of the year.
However the situation has obviously been changed significantly by the latest Budget measures, and the latest estimates from the newly-formed Office for Budget Responsibility are that growth will now only be 1.2% this year, rising to 2.3% next year, and improving slightly in succeeding years.
The Bank of England has welcomed the decision by the new government to introduce measures to address the problems created by the huge fiscal deficit. The governor, Mervyn King, argued recently that they would "eliminate some of the downside risks…and are desirable to remove the risk of an adverse market reaction."
###
By : 1888pressrelease.com
Print this Story
(1888PressRelease) February 03, 2011 - The big fall in the euro in recent months is clearly having a significant impact on the performance of the
euro-zone economy.
Shaw Capital Management, Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.
Factory output expanded at a record pace in April, helped by investment spending associated with the export effort, and overseas demand for European capital equipment, and the trend appears to be continuing. The major beneficiary has been Germany, but other northern member countries are also involved.
However the situation is much less encouraging in Greece, Spain, and Portugal, because they are less competitive in export markets, and are being forced to introduce austerity measures to reduce their fiscal deficits.
Domestic demand across the entire euro-zone remains weak, and so, despite the export performance of some member countries, it seems unlikely that the overall growth rate for the zone this year will reach 2%. The European Central Bank remains reasonably optimistic about prospects; but fortunately it has not moved towards an "exit strategy" that might involve reversing the measures that were introduced to counter the recession.
Short-term interest rates have been left unchanged and close to zero, the programme to provide unlimited three-month loans to the banking system is continuing, and the bank is also still intervening in the markets to buy the bonds of weaker member countries that had been sold heavily because of fears about debt defaults. The bank is therefore continuing to provide support for the system; but it is not really doing enough to offset the concerns about the debt crisis.
Greece remains in the eye of the storm; but there have been increasing concerns about the situation in Spain; and the situation has been made worse by the latest warning from the Fitch Ratings agency that it may take further massive asset purchases by the European Central Bank to prevent the sovereign debt crisis in the area escalating out of control.
Shaw Capital Management August 2010: Financial Markets Focusing Europe - There are fears that Spain will need to follow Greece in requesting help from other member countries and the IMF to enable it to avoid a default, and that Portugal, and perhaps even Italy, may also need to be rescued.
The pressures on the euro will therefore be intense; and whilst there may well be further support from the Swiss National Bank and others, the future of the single currency system clearly remains very uncertain. The latest modest rally in the euro must therefore be treated with great care.
Sterling has recovered from the weakness that developed in May, and is ending the month higher. The economic background in the UK has not provided any real support, and the Bank of England is clearly intending to maintain short-term interest rates at very low levels; but there has been some movement of funds out of the euro into sterling, and the new coalition government in the UK has introduced measures to reduce the massive fiscal deficit that have been well received in the markets and led to an improvement in sentiment.
There is clearly a risk that these latest measures in the Budget will depress the level of activity still further, and fail to solve the fiscal problems; but for the moment it seems that the new government is being given the benefit of the doubt.
The evidence on the performance of the economy ahead of the Budget announcement was still pointing to a very slow recovery in activity.
The manufacturing sector is reasonably buoyant, with exports expanding rapidly; and retail sales also increased more quickly than expected.
But unemployment rose again to 2.47 million, and the latest survey from the CBI indicated that the value and volume of business in the services sector fell, and that further weakness was expected in the second half of the year.
However the situation has obviously been changed significantly by the latest Budget measures, and the latest estimates from the newly-formed Office for Budget Responsibility are that growth will now only be 1.2% this year, rising to 2.3% next year, and improving slightly in succeeding years.
The Bank of England has welcomed the decision by the new government to introduce measures to address the problems created by the huge fiscal deficit. The governor, Mervyn King, argued recently that they would "eliminate some of the downside risks…and are desirable to remove the risk of an adverse market reaction."
###
Latest World Headlines: Shaw Capital Management | FSA issues warning on structured products
http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#axzz1PFEmURnD
Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#ixzz1PMzk5OWB
By Alice Ross
Published: June 6 2011 22:59 | Last updated: June 6 2011 22:59
Investment products described as “guaranteed”, “protected” or “secure” may have to carry an explanation stating exactly what these terms mean, in the latest warning from the Financial Services Authority that financial companies are not properly advertising risk to consumers.
So-called structured products, which offer people exposure to the stock market with some level of protection, were being promoted “without any clear and adequate justification for the descriptions used”, the regulator said in a quarterly consultation paper on Monday. It has proposed introducing guidelines that would force financial services companies to explain the use of terms such as “guaranteed” in advertisements or fact sheets.
EDITOR’S CHOICE
Analysis: Finance – Shadow boxes – Feb-02
Tony Jackson: Cat-and-mouse game – Jan-30
Lex: Financial Crisis Inquiry Commission – Jan-27
Goldman president warns on bank rules – Jan-26
Reforms need to nurture capital markets – Jan-26
Insight: Road map that opens up shadow banking – Nov-18
Structured products are increasingly being marketed by banks and wealth managers to consumers who are tempted by the headline rates on offer at a time when returns on cash are still close to zero.
Typical products will lock up capital for five years and offer investors a proportion of any return on the stock market over that period. But many “guaranteed” products in fact only protect capital if the stock market does not fall below a certain level over a certain period of time.
The regulator has had the investment products on its radar after a review in 2009 of products backed by Lehman Brothers found that sales advice had been either unclear or misleading in two-thirds of cases.
But sales of structured products have shot up since the credit crunch, with a 48 per cent rise in new sales in 2009 compared with 2008, according to the website Structuredretailproducts.com.
The UK retail market was worth £52bn at the end of 2010, up from £46bn the previous year. The FSA said it had taken steps to introduce the new rules after evidence that its current guidelines, introduced in 2001, were not working.
“We already have a rule that says firms have to be fair, clear and not misleading – but in a lot of cases we’re finding that’s not working,” the FSA said.
Structured products have been behind some of the largest fines imposed by the regulator in recent months, including a £1.4m fine on Norwich & Peterborough Building Society in April for mis-selling the investments and a £700,000 fine on RSM Tenon last year.
Some independent financial advisers have also faced individual fines for failing to explain the risks of the products properly. A consultation on the proposal is open to August 6.
The FSA expects to publish the results of a separate investigation into how structured products are sold and marketed to consumers later this year, which is expected to clamp down on sales practices further.
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article - http://www.ft.com/cms/s/2/5a31eedc-9077-11e0-9227-00144feab49a.html#ixzz1PMzk5OWB
By Alice Ross
Published: June 6 2011 22:59 | Last updated: June 6 2011 22:59
Investment products described as “guaranteed”, “protected” or “secure” may have to carry an explanation stating exactly what these terms mean, in the latest warning from the Financial Services Authority that financial companies are not properly advertising risk to consumers.
So-called structured products, which offer people exposure to the stock market with some level of protection, were being promoted “without any clear and adequate justification for the descriptions used”, the regulator said in a quarterly consultation paper on Monday. It has proposed introducing guidelines that would force financial services companies to explain the use of terms such as “guaranteed” in advertisements or fact sheets.
EDITOR’S CHOICE
Analysis: Finance – Shadow boxes – Feb-02
Tony Jackson: Cat-and-mouse game – Jan-30
Lex: Financial Crisis Inquiry Commission – Jan-27
Goldman president warns on bank rules – Jan-26
Reforms need to nurture capital markets – Jan-26
Insight: Road map that opens up shadow banking – Nov-18
Structured products are increasingly being marketed by banks and wealth managers to consumers who are tempted by the headline rates on offer at a time when returns on cash are still close to zero.
Typical products will lock up capital for five years and offer investors a proportion of any return on the stock market over that period. But many “guaranteed” products in fact only protect capital if the stock market does not fall below a certain level over a certain period of time.
The regulator has had the investment products on its radar after a review in 2009 of products backed by Lehman Brothers found that sales advice had been either unclear or misleading in two-thirds of cases.
But sales of structured products have shot up since the credit crunch, with a 48 per cent rise in new sales in 2009 compared with 2008, according to the website Structuredretailproducts.com.
The UK retail market was worth £52bn at the end of 2010, up from £46bn the previous year. The FSA said it had taken steps to introduce the new rules after evidence that its current guidelines, introduced in 2001, were not working.
“We already have a rule that says firms have to be fair, clear and not misleading – but in a lot of cases we’re finding that’s not working,” the FSA said.
Structured products have been behind some of the largest fines imposed by the regulator in recent months, including a £1.4m fine on Norwich & Peterborough Building Society in April for mis-selling the investments and a £700,000 fine on RSM Tenon last year.
Some independent financial advisers have also faced individual fines for failing to explain the risks of the products properly. A consultation on the proposal is open to August 6.
The FSA expects to publish the results of a separate investigation into how structured products are sold and marketed to consumers later this year, which is expected to clamp down on sales practices further.
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
Monday, July 18, 2011
Shaw Capital Working Management Tips & Articles: Plantation Capital’s Expansion Into Asia and the USA Gathers Pace
MAR1
http://www.onlineprnews.com/news/111391-1298891664-plantation-capitals-expansion-into-asia-and-the-usa-gathers-pace.html
William John
319 Harbour Yard, London Design Center
London Greater London, SW10
0XD
+44(0)2070603633
http://www.plantationcapital.co.uk
After only 12 months of expansion into the Asian markets, UK based Plantation Capital Plc has announced a major expansion of its product base in Sri Lanka and Thailand built on the solid foundation it has already established.
Online PR News – 28-February-2011 –In Sri Lanka over the last year the company has developed and managed with Singapore based Asia Plantation Capital (APC), over 816 acres of mixed agroforestry plantations, and taken over the management of further lands extending to 1,600 acres. All Sri Lankan operations are conducted through locally owned and managed Sri Lankan companies under the management of Manjula Perera, the Sri Lanka companies CFO. The companies as a whole already employs upwards of 250 people and with planned expansion over the next few months this figure is forecast to increase to 500, with further associated support industries taking the total to well over 1,000 in the coming year. This will provide a much needed boost to the local economies. The company has a policy of training local people to carry out all its operations, from manual labourers up to professionally qualified executives. As a commitment to this policy it only brings in foreign management for training purposes to ensure the skills sets required remains within the country. This adds value to the local skill base and ensures that local professional jobs can be found, to reduce the overseas exodus of skilled labour, which is currently occurring in Sri Lanka.
Building on this foundation, APC are now developing major bio energy projects which are supported by community initiated renewable energy plantations, which have integrated farming for food and milk production. These projects will involve the entire rural community and surrounding villages, with the focus on poverty alleviation and development of rural areas, with schools and new road construction being two of the major benefits. Company spokesman Manjula Perera stated:
“Over the next 6 months we are commencing the development of up to 15 megawatts of biomass dendro power plants which will be supplied by our own existing and expanding energy plantations, supported by local communities, not as out growers but as partners within the overall initiative. The combined development costs of these projects which will total around $50 Million USD, is being funded entirely by foreign investment brought into Sri Lanka by Asia Plantation Capital and supported by The Africasia Fund”.
(Manjula Perera, 2010) www.africasiafund.com
These projects have been at the planning stage for over 12 months and work closely in support of the Sri Lanka governments green dendro power initiatives, which have recently been bolstered by the governments increased price tariff announcements with respect to dendro power production. These types of projects in Sri Lanka have fantastic support, and aim to make the country one of the “Green” power examples for the entire Asian region, by demonstrating how commercial power production can work hand in hand with environmental and community beneficial projects.
In Thailand, Asia Plantation Capital has also expanded its operations significantly over the last 12 months, with the acquisition of 7 plantations and the establishment of its pilot Bamboo Bio Mass Project which was sold out in just 2 months. As part of this successful and professional development the founders of The Kingdom 9 Golden Bamboo (K9GB) Power Projects have entered into an understanding to share technologies and information with APC. As part of this agreement, the advanced systems developed in Thailand to produce electricity, bio oils and other related side products, will be brought into Sri Lanka. The company’s own developing projects in Thailand are planning to establish, with the Kingdom 9 Project, 1,600 hectares of advanced energy plantations as well as its own dendro power plants, as part of the K9GB project. This is also planned to expand into neighbouring Laos, which represents a further community based development project, which may include some $70 million USD of inwards investment.
The benefit to Sri Lanka in particular with regards to the advanced technologies, is that it will be a major boost to the country’s fledgling bio energy industry. Asia Plantation Capital will be using the most advanced and sustainable systems in the world, as bamboo is widely regarded, alongside gliricidia, as amongst the most important bio mass crops and natural assets in the world today.
Working as an integral part of the project team is well known Sri Lankan bio energy and community developments program campaigner, Group Captain Nalin De Silva (retired), whose own organisation started producing bio energy in the New Year from their own community initiated project in the Anadurapura region of the country.
“The potential for Sri Lanka to become self-sufficient in power production from its own naturally managed resources, for the benefit of both the local communities at grass roots level and the population as a whole, has long been almost a dream for the Bio Energy Association of Sri Lanka and my own organisations, with the clear and forward thinking support of the government and its policy in this regard, the dream is now fast becoming a reality. Companies such as Asia Plantation Capital, who have been staunch supporters of Sri Lanka throughout its troubled times and not just arrived to take advantage of current economic improvements, should be given our whole hearted support at all levels. They are currently bringing in investments and knowledge to the country from countries that have long shunned Sri Lanka, the opportunities it presents and by working with our community initiated energy projects and combining the commercial aspect which foreign investment requires, I can see nothing but a win win situation for all concerned. It also has to be noted that through the continued support and promotion of inward investment Sri Lanka will open up more and more to the eyes of foreign countries and become a shining example of how adversity and troubles can be turned into humanitarian success. We should also like to thank Ganlath’s Law, one of Sri Lanka’s leading specialist Attorneys, specialising in assisting foreign companies establish operations with full Governmental support and Board of Investment approval for projects and support of Sri Lanka in bringing these projects to the attention of global investors through Plantation Capital.”(Nalin De Silva, 2010)
As well as success and expansion in the field, 2010 has been a successful year for UK based Plantation Capital at a corporate level, becoming a UK Plc. As part of a possible planned future listing in London, it has also more recently has been appointed representative of Porte Verde Financial Services, authorised and regulated by the Financial Services Authority in the UK, enabling it to promote fund investments into the projects in Asia and beyond.
Plantation Capital Partners Inc in the USA has recently acquired large scale Timberland projects in the Southern USA and been appointed as advisors to a major European reforestation project and global private equity fund, more recently establishing separate companies developing Eco Plantation Homes www.plantationhomes.co.uk , which is beginning the development of eco plantation homes and tourism projects within the USA, Thailand and Europe. A major project in Sri Lanka, based on sustainable eco Homes built within totally self-sufficient plantation estates, has already started with the acquisition of land in the Badulla district of the country. We will also be working closely with local Buddhist Temples to not only showcase our excellent eco-tourism credentials in both Thailand and Sri Lanka but to make sure that local culture is not lost in the building of new homes in the area. All the homes will be built using locally produced sustainable materials, made from timber and bamboo and utilising the latest eco features for heating and cooling designed by award winning local and international architects.
# # #
Plantation Capital operates sustainable forestry investments and agricultural plantations in tropical countries. We offer customers teak and agarwood investments and agricultural investments (renewable energy) on our commercial plantations. Plantation Capital Plc. are an appointed representative of Porta Verde Financial Services Ltd authorised and regulated by The Financial Services Authority.
http://www.onlineprnews.com/news/111391-1298891664-plantation-capitals-expansion-into-asia-and-the-usa-gathers-pace.html
William John
319 Harbour Yard, London Design Center
London Greater London, SW10
0XD
+44(0)2070603633
http://www.plantationcapital.co.uk
After only 12 months of expansion into the Asian markets, UK based Plantation Capital Plc has announced a major expansion of its product base in Sri Lanka and Thailand built on the solid foundation it has already established.
Online PR News – 28-February-2011 –In Sri Lanka over the last year the company has developed and managed with Singapore based Asia Plantation Capital (APC), over 816 acres of mixed agroforestry plantations, and taken over the management of further lands extending to 1,600 acres. All Sri Lankan operations are conducted through locally owned and managed Sri Lankan companies under the management of Manjula Perera, the Sri Lanka companies CFO. The companies as a whole already employs upwards of 250 people and with planned expansion over the next few months this figure is forecast to increase to 500, with further associated support industries taking the total to well over 1,000 in the coming year. This will provide a much needed boost to the local economies. The company has a policy of training local people to carry out all its operations, from manual labourers up to professionally qualified executives. As a commitment to this policy it only brings in foreign management for training purposes to ensure the skills sets required remains within the country. This adds value to the local skill base and ensures that local professional jobs can be found, to reduce the overseas exodus of skilled labour, which is currently occurring in Sri Lanka.
Building on this foundation, APC are now developing major bio energy projects which are supported by community initiated renewable energy plantations, which have integrated farming for food and milk production. These projects will involve the entire rural community and surrounding villages, with the focus on poverty alleviation and development of rural areas, with schools and new road construction being two of the major benefits. Company spokesman Manjula Perera stated:
“Over the next 6 months we are commencing the development of up to 15 megawatts of biomass dendro power plants which will be supplied by our own existing and expanding energy plantations, supported by local communities, not as out growers but as partners within the overall initiative. The combined development costs of these projects which will total around $50 Million USD, is being funded entirely by foreign investment brought into Sri Lanka by Asia Plantation Capital and supported by The Africasia Fund”.
(Manjula Perera, 2010) www.africasiafund.com
These projects have been at the planning stage for over 12 months and work closely in support of the Sri Lanka governments green dendro power initiatives, which have recently been bolstered by the governments increased price tariff announcements with respect to dendro power production. These types of projects in Sri Lanka have fantastic support, and aim to make the country one of the “Green” power examples for the entire Asian region, by demonstrating how commercial power production can work hand in hand with environmental and community beneficial projects.
In Thailand, Asia Plantation Capital has also expanded its operations significantly over the last 12 months, with the acquisition of 7 plantations and the establishment of its pilot Bamboo Bio Mass Project which was sold out in just 2 months. As part of this successful and professional development the founders of The Kingdom 9 Golden Bamboo (K9GB) Power Projects have entered into an understanding to share technologies and information with APC. As part of this agreement, the advanced systems developed in Thailand to produce electricity, bio oils and other related side products, will be brought into Sri Lanka. The company’s own developing projects in Thailand are planning to establish, with the Kingdom 9 Project, 1,600 hectares of advanced energy plantations as well as its own dendro power plants, as part of the K9GB project. This is also planned to expand into neighbouring Laos, which represents a further community based development project, which may include some $70 million USD of inwards investment.
The benefit to Sri Lanka in particular with regards to the advanced technologies, is that it will be a major boost to the country’s fledgling bio energy industry. Asia Plantation Capital will be using the most advanced and sustainable systems in the world, as bamboo is widely regarded, alongside gliricidia, as amongst the most important bio mass crops and natural assets in the world today.
Working as an integral part of the project team is well known Sri Lankan bio energy and community developments program campaigner, Group Captain Nalin De Silva (retired), whose own organisation started producing bio energy in the New Year from their own community initiated project in the Anadurapura region of the country.
“The potential for Sri Lanka to become self-sufficient in power production from its own naturally managed resources, for the benefit of both the local communities at grass roots level and the population as a whole, has long been almost a dream for the Bio Energy Association of Sri Lanka and my own organisations, with the clear and forward thinking support of the government and its policy in this regard, the dream is now fast becoming a reality. Companies such as Asia Plantation Capital, who have been staunch supporters of Sri Lanka throughout its troubled times and not just arrived to take advantage of current economic improvements, should be given our whole hearted support at all levels. They are currently bringing in investments and knowledge to the country from countries that have long shunned Sri Lanka, the opportunities it presents and by working with our community initiated energy projects and combining the commercial aspect which foreign investment requires, I can see nothing but a win win situation for all concerned. It also has to be noted that through the continued support and promotion of inward investment Sri Lanka will open up more and more to the eyes of foreign countries and become a shining example of how adversity and troubles can be turned into humanitarian success. We should also like to thank Ganlath’s Law, one of Sri Lanka’s leading specialist Attorneys, specialising in assisting foreign companies establish operations with full Governmental support and Board of Investment approval for projects and support of Sri Lanka in bringing these projects to the attention of global investors through Plantation Capital.”(Nalin De Silva, 2010)
As well as success and expansion in the field, 2010 has been a successful year for UK based Plantation Capital at a corporate level, becoming a UK Plc. As part of a possible planned future listing in London, it has also more recently has been appointed representative of Porte Verde Financial Services, authorised and regulated by the Financial Services Authority in the UK, enabling it to promote fund investments into the projects in Asia and beyond.
Plantation Capital Partners Inc in the USA has recently acquired large scale Timberland projects in the Southern USA and been appointed as advisors to a major European reforestation project and global private equity fund, more recently establishing separate companies developing Eco Plantation Homes www.plantationhomes.co.uk , which is beginning the development of eco plantation homes and tourism projects within the USA, Thailand and Europe. A major project in Sri Lanka, based on sustainable eco Homes built within totally self-sufficient plantation estates, has already started with the acquisition of land in the Badulla district of the country. We will also be working closely with local Buddhist Temples to not only showcase our excellent eco-tourism credentials in both Thailand and Sri Lanka but to make sure that local culture is not lost in the building of new homes in the area. All the homes will be built using locally produced sustainable materials, made from timber and bamboo and utilising the latest eco features for heating and cooling designed by award winning local and international architects.
# # #
Plantation Capital operates sustainable forestry investments and agricultural plantations in tropical countries. We offer customers teak and agarwood investments and agricultural investments (renewable energy) on our commercial plantations. Plantation Capital Plc. are an appointed representative of Porta Verde Financial Services Ltd authorised and regulated by The Financial Services Authority.
Shaw Capital Working Management Tips & Articles: Pine River Adds Morgan Stanley’s Teichholtz
MAR1
1 Vote
http://www.finalternatives.com/node/15667
Feb 28 2011 | 11:33am ET
Hedge fund Pine River Capital Management has hired a top Morgan Stanley trader focused on rates trading.
It is unclear what Colin Teichholtz will do precisely at the $1.2 billion firm, based outside of Minneapolis. But he won’t be moving to the Twin Cities, instead working for Pine River from New York.
At Morgan Stanley, Teichholtz was co-head of liquid rates trading, overseeing a team specializing in Treasuries, interest-rate swaps, agency debt and government-backed mortgage bonds, Bloomberg News reports.
Teichholtz joined Morgan Stanley in 2003. Before that, he spent a brief stint as a trader at hedge fund Caxton Associates, a post he took up after leaving Goldman Sachs.
Pine River’s flagship Nisswa Fixed Income Fund rose 27% through the first 10 months of last year.
1 Vote
http://www.finalternatives.com/node/15667
Feb 28 2011 | 11:33am ET
Hedge fund Pine River Capital Management has hired a top Morgan Stanley trader focused on rates trading.
It is unclear what Colin Teichholtz will do precisely at the $1.2 billion firm, based outside of Minneapolis. But he won’t be moving to the Twin Cities, instead working for Pine River from New York.
At Morgan Stanley, Teichholtz was co-head of liquid rates trading, overseeing a team specializing in Treasuries, interest-rate swaps, agency debt and government-backed mortgage bonds, Bloomberg News reports.
Teichholtz joined Morgan Stanley in 2003. Before that, he spent a brief stint as a trader at hedge fund Caxton Associates, a post he took up after leaving Goldman Sachs.
Pine River’s flagship Nisswa Fixed Income Fund rose 27% through the first 10 months of last year.
Shaw Capital Working Management Tips & Articles: CriticalMass, a Venture-Backed Co-Working Space for Startups, to Open at CIC
MAR1
Rate this
http://www.xconomy.com/boston/2011/02/28/criticalmass-a-venture-backed-co-working-space-for-startups-to-open-at-cic/
Gregory T. Huang
2/28/11
Boston has MassChallenge. Now Cambridge has CriticalMass. If nothing else, this will help fan the flames of the budding Boston-Cambridge startup incubator/real estate rivalry. (OK, we’ll keep an eye on New Yorkand Silicon Valley, too.)
The New England Venture Capital Association (NEVCA) and five Boston-area VC firms have banded together to organize what they are calling “CriticalMass”—a 2,500-square-foot co-working space for entrepreneurs at the (CIC) in Kendall Square. The participating VCs are Bain Capital Ventures, Charles River Ventures, Flybridge Capital Partners, Highland Capital Partners, and North Bridge Venture Partners. (According to a news release going out tomorrow, the five VC firms collectively have 88 investors based in Massachusetts, 130 portfolio companies in New England, and nearly $10 billion under management.)
Startup space at the CIC is hardly a new concept, of course. Neither is co-working space for entrepreneurs. But as far as I know, this is the first arrangement of its kind where a group of Boston-area venture firms are collaborating on a common space. It’s also the latest example of traditional VCs trying to get involved with tech entrepreneurs at the earliest stages—and staking out physical space in Kendall Square, where the startup ecosystem has seen many comings and goings lately.
So, in the months to come, look for more venture capitalists from NEVCA and the above firms to be roaming the proverbial halls of the CIC. Each venture firm will stake out conference-room space to meet with entrepreneurs, and will contribute to mentoring startups in the space more generally. They will also have the option to sponsor office space for some 48 entrepreneurs per year (in total). The CriticalMass space is otherwise open to any entrepreneur for $250 per month. One of the first inhabitants will be Spiros Eliopoulos from Rhode Island-based Tracelytics, who is being sponsored by Flybridge.
The official opening of CriticalMass will be on March 31.
Gregory T. Huang is Xconomy’s National IT Editor and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com, call him at 617-252-7323, or follow him at twitter.com/gthuang.
Rate this
http://www.xconomy.com/boston/2011/02/28/criticalmass-a-venture-backed-co-working-space-for-startups-to-open-at-cic/
Gregory T. Huang
2/28/11
Boston has MassChallenge. Now Cambridge has CriticalMass. If nothing else, this will help fan the flames of the budding Boston-Cambridge startup incubator/real estate rivalry. (OK, we’ll keep an eye on New Yorkand Silicon Valley, too.)
The New England Venture Capital Association (NEVCA) and five Boston-area VC firms have banded together to organize what they are calling “CriticalMass”—a 2,500-square-foot co-working space for entrepreneurs at the (CIC) in Kendall Square. The participating VCs are Bain Capital Ventures, Charles River Ventures, Flybridge Capital Partners, Highland Capital Partners, and North Bridge Venture Partners. (According to a news release going out tomorrow, the five VC firms collectively have 88 investors based in Massachusetts, 130 portfolio companies in New England, and nearly $10 billion under management.)
Startup space at the CIC is hardly a new concept, of course. Neither is co-working space for entrepreneurs. But as far as I know, this is the first arrangement of its kind where a group of Boston-area venture firms are collaborating on a common space. It’s also the latest example of traditional VCs trying to get involved with tech entrepreneurs at the earliest stages—and staking out physical space in Kendall Square, where the startup ecosystem has seen many comings and goings lately.
So, in the months to come, look for more venture capitalists from NEVCA and the above firms to be roaming the proverbial halls of the CIC. Each venture firm will stake out conference-room space to meet with entrepreneurs, and will contribute to mentoring startups in the space more generally. They will also have the option to sponsor office space for some 48 entrepreneurs per year (in total). The CriticalMass space is otherwise open to any entrepreneur for $250 per month. One of the first inhabitants will be Spiros Eliopoulos from Rhode Island-based Tracelytics, who is being sponsored by Flybridge.
The official opening of CriticalMass will be on March 31.
Gregory T. Huang is Xconomy’s National IT Editor and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com, call him at 617-252-7323, or follow him at twitter.com/gthuang.
Thursday, July 14, 2011
Organizational Development - The Fun Way
The Boiler Room is a great place to reward your folks with some fun. It’s also an ideal place to get serious and explore issues related to team and organizational development. By temporarily shedding job titles and real world responsibilities, your people can interact freely and fully engage to achieve group goals.
All of our offerings focus on enhancing the relational skills needed for positive and productive human interaction and goal achievement. We'll help you examine and talk about human systems objectively and break through to new understandings about human interaction within your group or organization.
We offer learning 'events' that include climbing the walls at The Boiler Room, as well as non-climbing experiential challenges. We also offer training courses and experiential events at the venue of your choice.
Whether you're looking for a light social activity or educational opportunities, The Boiler Room has a lot to offer...
About Breakthrough Associates Inc and The Boiler Room Climbing Gym…
Benefits of Experiential Learning…
Organizational Development…
Social Activities, Just for Fun…
Group Discounts, Program Costs, Booking Procedures…
All of our offerings focus on enhancing the relational skills needed for positive and productive human interaction and goal achievement. We'll help you examine and talk about human systems objectively and break through to new understandings about human interaction within your group or organization.
We offer learning 'events' that include climbing the walls at The Boiler Room, as well as non-climbing experiential challenges. We also offer training courses and experiential events at the venue of your choice.
Whether you're looking for a light social activity or educational opportunities, The Boiler Room has a lot to offer...
About Breakthrough Associates Inc and The Boiler Room Climbing Gym…
Benefits of Experiential Learning…
Organizational Development…
Social Activities, Just for Fun…
Group Discounts, Program Costs, Booking Procedures…
Shaw Capital Management Warning Tips | Shaw Capital Management Profile Reviews
Shaw Capital Management Warning Tips
Looking for a loan or credit card but don't think you'll qualify? Turned down by a bank because of your poor credit history?
You may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. The catch comes when you apply for the loan or credit card and find out you have to pay a fee in advance. According to the Federal Trade Commission (FTC), the nation's consumer protection agency, that could be a tip-off to a rip-off. If you're asked to pay a fee for the promise of a loan or credit card, you can count on the fact that you're dealing with a scam artist. More than likely, you'll get an application, or a stored value or debit card, instead of the loan or credit card.
The FTC says some red flags can tip you off to scam artists' tricks. For example:
* A lender who isn't interested in your credit history. A lender may offer loans or credit cards for many purposes - for example, so a borrower can start a business or consolidate bill payments. But one who doesn't care about your credit record should give you cause for concern. Ads that say "Bad credit? No problem" or "We don't care about your past. You deserve a loan" or "Get money fast" or even "No hassle - guaranteed" often indicate a scam.
* Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit - even to creditworthy consumers.
* Fees that are not disclosed clearly or prominently. Scam lenders may say you've been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you're told it's for "insurance," "processing," or just "paperwork."
Legitimate lenders often charge application, appraisal, or credit report fees. The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved.
It's also a warning sign if a lender says they won't check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee they're hiding.
* A loan that is offered by phone. It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
* A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or another reputable organization, and some even produce forged paperwork or pay people to pretend to be references. Always get a company's phone number from the phone book or directory assistance, and call to check they are who they say they are. Get a physical address, too: a company that advertises a PO Box as its address is one to check out with the appropriate authorities.
* A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state Attorney General's office or your state's Department of Banking or Financial Regulation. Checking registration does not guarantee that you will be happy with a lender, but it helps weed out the crooks.
A lender who asks you to wire money or pay an individual. Don't make a payment for a loan or credit card directly to an individual; legitimate lenders don't ask anyone to do that. In addition, don't use a wire transfer service or send money orders for a loan. You have little recourse if there's a problem with a wire transaction, and legitimate lenders don't pressure their customers to wire funds.
Finally, just because you've received a slick promotion, seen an ad for a loan in a prominent place in your neighborhood or in your newspaper, on television or on the Internet, or heard one on the radio, don't assume it's a good deal - or even legitimate. Scam artists like to operate on the premise of legitimacy by association, so it's really important to do your homework.
Shaw Capital Management and Financing - Advance-Fee Loan Scams: Finding Low-Cost Help for Credit Problems
If you have debt problems, try to solve them with your creditors as soon as you realize you won't be able to make your payments. If you can't resolve the problems yourself or need help to do it, you may want to contact a credit counseling service. Nonprofit organizations in every state counsel and educate people and families on debt problems, budgeting, and using credit wisely. Often, these services are low- or no-cost. Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. To learn more about dealing with debt, including how to select a credit counseling service, visit ftc.gov/credit.
Looking for a loan or credit card but don't think you'll qualify? Turned down by a bank because of your poor credit history?
You may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. The catch comes when you apply for the loan or credit card and find out you have to pay a fee in advance. According to the Federal Trade Commission (FTC), the nation's consumer protection agency, that could be a tip-off to a rip-off. If you're asked to pay a fee for the promise of a loan or credit card, you can count on the fact that you're dealing with a scam artist. More than likely, you'll get an application, or a stored value or debit card, instead of the loan or credit card.
The FTC says some red flags can tip you off to scam artists' tricks. For example:
* A lender who isn't interested in your credit history. A lender may offer loans or credit cards for many purposes - for example, so a borrower can start a business or consolidate bill payments. But one who doesn't care about your credit record should give you cause for concern. Ads that say "Bad credit? No problem" or "We don't care about your past. You deserve a loan" or "Get money fast" or even "No hassle - guaranteed" often indicate a scam.
* Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit - even to creditworthy consumers.
* Fees that are not disclosed clearly or prominently. Scam lenders may say you've been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you're told it's for "insurance," "processing," or just "paperwork."
Legitimate lenders often charge application, appraisal, or credit report fees. The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved.
It's also a warning sign if a lender says they won't check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee they're hiding.
* A loan that is offered by phone. It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
* A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or another reputable organization, and some even produce forged paperwork or pay people to pretend to be references. Always get a company's phone number from the phone book or directory assistance, and call to check they are who they say they are. Get a physical address, too: a company that advertises a PO Box as its address is one to check out with the appropriate authorities.
* A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state Attorney General's office or your state's Department of Banking or Financial Regulation. Checking registration does not guarantee that you will be happy with a lender, but it helps weed out the crooks.
A lender who asks you to wire money or pay an individual. Don't make a payment for a loan or credit card directly to an individual; legitimate lenders don't ask anyone to do that. In addition, don't use a wire transfer service or send money orders for a loan. You have little recourse if there's a problem with a wire transaction, and legitimate lenders don't pressure their customers to wire funds.
Finally, just because you've received a slick promotion, seen an ad for a loan in a prominent place in your neighborhood or in your newspaper, on television or on the Internet, or heard one on the radio, don't assume it's a good deal - or even legitimate. Scam artists like to operate on the premise of legitimacy by association, so it's really important to do your homework.
Shaw Capital Management and Financing - Advance-Fee Loan Scams: Finding Low-Cost Help for Credit Problems
If you have debt problems, try to solve them with your creditors as soon as you realize you won't be able to make your payments. If you can't resolve the problems yourself or need help to do it, you may want to contact a credit counseling service. Nonprofit organizations in every state counsel and educate people and families on debt problems, budgeting, and using credit wisely. Often, these services are low- or no-cost. Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. To learn more about dealing with debt, including how to select a credit counseling service, visit ftc.gov/credit.
Tuesday, July 12, 2011
South Carolina Increases Investments In Avenue, D.E. Shaw
Jul 8 2011 | 11:25am ET
South Carolina's main public pension plan has boosted its commitments to two hedge fund managers by a total of $550 million.
The $26 billion South Carolina Retirement System Investment Commission has doubled its allocation to Avenue Capital Management, Pensions & Investments reports. The New York-based hedge fund will now manage $500 million for the pension.
In addition, South Carolina combined two existing commitments to D.E. Shaw Group that totaled $450 million and added another $300 million.
The pension has also extended the term of its investment consultant by one year; NEPC's contract will now expire at the end of June 2012. Chief Operating Officer Robert Feinstein said that South Carolina is still mulling whether to issue a request for proposals for a new consultant.
South Carolina's main public pension plan has boosted its commitments to two hedge fund managers by a total of $550 million.
The $26 billion South Carolina Retirement System Investment Commission has doubled its allocation to Avenue Capital Management, Pensions & Investments reports. The New York-based hedge fund will now manage $500 million for the pension.
In addition, South Carolina combined two existing commitments to D.E. Shaw Group that totaled $450 million and added another $300 million.
The pension has also extended the term of its investment consultant by one year; NEPC's contract will now expire at the end of June 2012. Chief Operating Officer Robert Feinstein said that South Carolina is still mulling whether to issue a request for proposals for a new consultant.
Shaw Capital Management for Small Business Financing with Factoring
Online PR News – 28-June-2011 –Financing a small business has always been challenging. Read this article to find out if factoring financing is the right solution for your small business. Learn from experts, refrain from internet offer scams and fraud.
shaw capital management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Small business owners have always had a tough time obtaining financing. Simply, most small businesses just can’t qualify for conventional business loans. The requirements are too onerous – the company must have sizable assets, multiple years of profitability and many times, it’s financial statements must be audited by a 3rd party.
Most business owners consider that a business loan is their only business financing alternative. When they get turned away, they give up any hope of obtaining financing. What most small business owners don’t know is that they do have alternatives – and – many times those alternatives can work better that conventional financing.
Let’s take a common cash flow challenge. Companies that sell products or services to other businesses usually have to wait between 30 and 60 days to get paid for their services. So, they incur the expenses of delivery immediately, but then wait a long time to recoup their investment. While this is fine for companies with adequate banking reserves, it is one of the major challenges that business owners face today. As a matter of fact, few startups plan for the fact that it takes 4 to 8 weeks to get paid, which not only limits their growth opportunities, but challenges their very survival as a business.
Now, most business owners would consider that the only solution to the previous problem is to get a loan or a line of credit. But there is another option – it’s called factoring financing. Few people have heard of it, so not many owners consider it if they fail to get a business loan.
Invoice factoring offers a very simple solution to the slow payments problem. Let’s say that you sold $10,000 worth of consulting services to a company. And let’s say that they’ll pay the $10,000 in about 45 days, which is the industry average. Now, what happens if you can’t wait because you need to meet payroll or make supplier payments? Well, you could sell the invoice to a factoring company. The factoring company would buy it from you in two installments. The first installment would be for 80% of the invoice, or $8000 in the case of our example. This is paid at invoicing.
The second installment, paid to you when your client actually pays the invoice, is the remaining 20%, less a fee. Using our example, it’d be $2000 minus the cost of the factoring service.
So factoring invoices offers you the following proposition: an immediate advance of about 80% at time of invoicing, and a second advance for the reminder (less fees) at the time of actual payment.
As you can see, factoring provides the needed working capital to meet business expenses without worrying about when your client will pay. It provides you with predictable cash flow, positioning your business for growth. And qualifying for factoring tends to be relatively easy. The biggest requirement (though not the only one) is that you must have a good roster of clients. By Marco Terry
shaw capital management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Small business owners have always had a tough time obtaining financing. Simply, most small businesses just can’t qualify for conventional business loans. The requirements are too onerous – the company must have sizable assets, multiple years of profitability and many times, it’s financial statements must be audited by a 3rd party.
Most business owners consider that a business loan is their only business financing alternative. When they get turned away, they give up any hope of obtaining financing. What most small business owners don’t know is that they do have alternatives – and – many times those alternatives can work better that conventional financing.
Let’s take a common cash flow challenge. Companies that sell products or services to other businesses usually have to wait between 30 and 60 days to get paid for their services. So, they incur the expenses of delivery immediately, but then wait a long time to recoup their investment. While this is fine for companies with adequate banking reserves, it is one of the major challenges that business owners face today. As a matter of fact, few startups plan for the fact that it takes 4 to 8 weeks to get paid, which not only limits their growth opportunities, but challenges their very survival as a business.
Now, most business owners would consider that the only solution to the previous problem is to get a loan or a line of credit. But there is another option – it’s called factoring financing. Few people have heard of it, so not many owners consider it if they fail to get a business loan.
Invoice factoring offers a very simple solution to the slow payments problem. Let’s say that you sold $10,000 worth of consulting services to a company. And let’s say that they’ll pay the $10,000 in about 45 days, which is the industry average. Now, what happens if you can’t wait because you need to meet payroll or make supplier payments? Well, you could sell the invoice to a factoring company. The factoring company would buy it from you in two installments. The first installment would be for 80% of the invoice, or $8000 in the case of our example. This is paid at invoicing.
The second installment, paid to you when your client actually pays the invoice, is the remaining 20%, less a fee. Using our example, it’d be $2000 minus the cost of the factoring service.
So factoring invoices offers you the following proposition: an immediate advance of about 80% at time of invoicing, and a second advance for the reminder (less fees) at the time of actual payment.
As you can see, factoring provides the needed working capital to meet business expenses without worrying about when your client will pay. It provides you with predictable cash flow, positioning your business for growth. And qualifying for factoring tends to be relatively easy. The biggest requirement (though not the only one) is that you must have a good roster of clients. By Marco Terry
Shaw Capital Management: Accounts Receivable Financing
What is Accounts Receivable Financing?
Receivable financing is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become the preferred financial tool in obtaining flexible working capital for businesses of all sizes. The receivable credit line is determined by the financial strength of the customer (Buyer), not the client (The seller of the receivables).
Shaw Capital Management financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength.
Business must sell to a good credit worthy account debtor (customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor. Receivable financing is available to all industries that provide services, or deliver products to commercial accounts.
At Shaw Capital Management - providing a fast, simple and affordable solution to bridge the gap between billing and collections ...
Receivable financing is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become the preferred financial tool in obtaining flexible working capital for businesses of all sizes. The receivable credit line is determined by the financial strength of the customer (Buyer), not the client (The seller of the receivables).
Shaw Capital Management financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength.
Business must sell to a good credit worthy account debtor (customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor. Receivable financing is available to all industries that provide services, or deliver products to commercial accounts.
At Shaw Capital Management - providing a fast, simple and affordable solution to bridge the gap between billing and collections ...
Sunday, July 10, 2011
Shaw Capital Working Management News Worldwide: The Big China Question – 3 May 2011
MAY 4
http://goldnews.bullionvault.com/china_overtake_050320112
Will China really overtake US in five years?
ACCORDING TO the International Monetary Fund (IMF) “World Economic Outlook,” China’s output will surpass that of the United States in 2016 – only five years from now, writes Martin Hutchinson, contributing editor at Money Morning.
But don’t worry. The IMF calculation is based on “purchasing power parity” (PPP), which does not reflect real money. It relies on projecting China’s stellar growth rates five years into the future. And it relies on Chinese official statistics, which are more than a little questionable.
In fact, after the media storm that resulted, the IMF apparently even soft-pedaled its prediction that China would leapfrog the United States in just five years; in a subsequent interview, an IMF spokesman reportedly said that, by non-PPP measures, the US economy “will still be 70% larger by 2016.” A recent World Bank forecast concluded that China could overtake the United States by 2030.
The IMF prediction – and the attention it continues to draw – serves a useful purpose, particularly if it’s given the scrutiny that it deserves.
For global investors with China-based holdings, it reminds us of that country’s long-term potential – and the fact that such potential is always tempered by near-term risk. For the rest of us, it reminds us that China’s ascendance is inevitable – in fact, is already happening – and will be with us for a long time, even if that Asian giant isn’t immediately going to overwhelm the rest of the world.
And for our elected leaders in Washington, the IMF report – false alarm or not – should serve as a wakeup call to attack and address the many problems that threaten this country’s global leadership.
I had some problems with this prediction from the moment it hit the headlines.
Let’s start with the IMF statistics themselves. They measure gross domestic product (GDP) on the basis of “purchasing power parity,” rather than by market exchange rates.
That makes sense if you’re comparing living standards: If you are talking about what the typical China consumer can buy, he or she is about one-sixth as well off as his or her American counterpart, not one-twentieth.
However, the use of the PPP measure makes much less sense when looking at international trade or political power. That’s because individual purchasing power includes such items as haircuts, which are much cheaper in Beijing than in Boston (except, doubtless, at a couple of very overpriced salons in Shanghai or one of the other burgeoning financial centers) and cannot easily be traded internationally.
On the other hand, goods that are traded internationally are subject to global market forces and are generally about the same price everywhere they are sold. In fact, some of those goods may even be cheaper in the United States, since our distribution system is more efficient and our tariffs lower.
That’s also true of large-scale armaments; you will be able to get the People’s Liberation Army (PLA) soldiers to work for much less than their US counterparts, but the cost of a fighter jet or a missile with certain capabilities is pretty much standard around the world.
So even if the IMF’s 2016 forecast was an accurate one, there’s no way that China would be able to project as much military power as the United States, or to distribute as much foreign aid and subsidies to client states.
For at least a decade beyond 2016 – and probably more – China will be a substantial No. 2 … a market that can’t be ignored … but not No. 1.
When you are estimating future growth rates, the farther out you go, the more inaccurate your predictions become: If you were to take China’s current growth rate and project it forward 50 years into the future, the Asian giant would have absorbed the whole of world GDP and be starting work on Mars.
Even a five-year projection – such as the one the IMF put forth – does not allow for the possibility that China will experience an economic hiccup before that period ends. The recent news that China has just fired the head of its $270 billion high-speed rail network for embezzlement, and is now running the trains 30 miles per hour slower than before for safety reasons, indicates that – in a command economy like China’s – much of the apparently soaring output may have been wasted.
My 1990 Economist diary claimed that the centrally planned East Germany was richer than the free-market Britain; as a native Brit who had recently visited East Germany, I can tell you that this wasn’t the case – in fact, it wasn’t even close.
Indeed, when the Berlin Wall came down, we saw the former Comecon (Council for Mutual Economic Assistance) economies lose as much as 60% of their GDP as factories closed because their output was uncompetitive in the free market. Similarly, up to half of China’s GDP may be wasted: Think of all the empty offices and apartment blocks, developed by state-guaranteed companies, all of which are held as assets on the balance sheets of China’s banking system.
Long-term, there’s no question that China has great potential. At the same time, however, I think it very unlikely that China’s economy will make it to 2016 without a major banking crisis, which will knock back its GDP for several years.
The IMF numbers aren’t the only ones that I feel are suspect – so, too, are many of China’s growth statistics. GDP figures are announced immediately after the end of each quarter, which given China’s size and diversity means they must reflect the wishes of the leadership more than any measurement of reality.
Sometimes, of course, the leadership may wish to record lower growth, to show that some monetary or fiscal tightening is working. But I’ll bet that most of the time, the temptation is to “round up,” as opposed to rounding down.
Far too many Western analysts and observers spend most of their time in the major urban centers, where growth has been fastest, and therefore aren’t aware of, don’t get to see, or even purposely ignore, stagnant areas or places where central planning has wasted billions. The prolonged rapture about the Chinese high-speed rail plan by a number of US commentators is one good example of a case in which too many reporters took too many of China’s claims at face value and failed to examine the challenges and problems that were hidden by the hype.
So my guess is that, even now, China’s GDP and growth rates are not as impressive as reported.
The bottom line: China is big, getting bigger, and its growth can’t be ignored – especially given its long-term investment potential. But there are near-term challenges, many of them substantial. If China does not have a major economic trauma, then indeed by 2030 or so it will be close to overtaking the United States. But we have a lot more than five years in which to make the necessary adjustments.
Our leaders should use this as a wakeup call.
Buying Gold?…
Martin Hutchinson, 03 May ’11
http://goldnews.bullionvault.com/china_overtake_050320112
Will China really overtake US in five years?
ACCORDING TO the International Monetary Fund (IMF) “World Economic Outlook,” China’s output will surpass that of the United States in 2016 – only five years from now, writes Martin Hutchinson, contributing editor at Money Morning.
But don’t worry. The IMF calculation is based on “purchasing power parity” (PPP), which does not reflect real money. It relies on projecting China’s stellar growth rates five years into the future. And it relies on Chinese official statistics, which are more than a little questionable.
In fact, after the media storm that resulted, the IMF apparently even soft-pedaled its prediction that China would leapfrog the United States in just five years; in a subsequent interview, an IMF spokesman reportedly said that, by non-PPP measures, the US economy “will still be 70% larger by 2016.” A recent World Bank forecast concluded that China could overtake the United States by 2030.
The IMF prediction – and the attention it continues to draw – serves a useful purpose, particularly if it’s given the scrutiny that it deserves.
For global investors with China-based holdings, it reminds us of that country’s long-term potential – and the fact that such potential is always tempered by near-term risk. For the rest of us, it reminds us that China’s ascendance is inevitable – in fact, is already happening – and will be with us for a long time, even if that Asian giant isn’t immediately going to overwhelm the rest of the world.
And for our elected leaders in Washington, the IMF report – false alarm or not – should serve as a wakeup call to attack and address the many problems that threaten this country’s global leadership.
I had some problems with this prediction from the moment it hit the headlines.
Let’s start with the IMF statistics themselves. They measure gross domestic product (GDP) on the basis of “purchasing power parity,” rather than by market exchange rates.
That makes sense if you’re comparing living standards: If you are talking about what the typical China consumer can buy, he or she is about one-sixth as well off as his or her American counterpart, not one-twentieth.
However, the use of the PPP measure makes much less sense when looking at international trade or political power. That’s because individual purchasing power includes such items as haircuts, which are much cheaper in Beijing than in Boston (except, doubtless, at a couple of very overpriced salons in Shanghai or one of the other burgeoning financial centers) and cannot easily be traded internationally.
On the other hand, goods that are traded internationally are subject to global market forces and are generally about the same price everywhere they are sold. In fact, some of those goods may even be cheaper in the United States, since our distribution system is more efficient and our tariffs lower.
That’s also true of large-scale armaments; you will be able to get the People’s Liberation Army (PLA) soldiers to work for much less than their US counterparts, but the cost of a fighter jet or a missile with certain capabilities is pretty much standard around the world.
So even if the IMF’s 2016 forecast was an accurate one, there’s no way that China would be able to project as much military power as the United States, or to distribute as much foreign aid and subsidies to client states.
For at least a decade beyond 2016 – and probably more – China will be a substantial No. 2 … a market that can’t be ignored … but not No. 1.
When you are estimating future growth rates, the farther out you go, the more inaccurate your predictions become: If you were to take China’s current growth rate and project it forward 50 years into the future, the Asian giant would have absorbed the whole of world GDP and be starting work on Mars.
Even a five-year projection – such as the one the IMF put forth – does not allow for the possibility that China will experience an economic hiccup before that period ends. The recent news that China has just fired the head of its $270 billion high-speed rail network for embezzlement, and is now running the trains 30 miles per hour slower than before for safety reasons, indicates that – in a command economy like China’s – much of the apparently soaring output may have been wasted.
My 1990 Economist diary claimed that the centrally planned East Germany was richer than the free-market Britain; as a native Brit who had recently visited East Germany, I can tell you that this wasn’t the case – in fact, it wasn’t even close.
Indeed, when the Berlin Wall came down, we saw the former Comecon (Council for Mutual Economic Assistance) economies lose as much as 60% of their GDP as factories closed because their output was uncompetitive in the free market. Similarly, up to half of China’s GDP may be wasted: Think of all the empty offices and apartment blocks, developed by state-guaranteed companies, all of which are held as assets on the balance sheets of China’s banking system.
Long-term, there’s no question that China has great potential. At the same time, however, I think it very unlikely that China’s economy will make it to 2016 without a major banking crisis, which will knock back its GDP for several years.
The IMF numbers aren’t the only ones that I feel are suspect – so, too, are many of China’s growth statistics. GDP figures are announced immediately after the end of each quarter, which given China’s size and diversity means they must reflect the wishes of the leadership more than any measurement of reality.
Sometimes, of course, the leadership may wish to record lower growth, to show that some monetary or fiscal tightening is working. But I’ll bet that most of the time, the temptation is to “round up,” as opposed to rounding down.
Far too many Western analysts and observers spend most of their time in the major urban centers, where growth has been fastest, and therefore aren’t aware of, don’t get to see, or even purposely ignore, stagnant areas or places where central planning has wasted billions. The prolonged rapture about the Chinese high-speed rail plan by a number of US commentators is one good example of a case in which too many reporters took too many of China’s claims at face value and failed to examine the challenges and problems that were hidden by the hype.
So my guess is that, even now, China’s GDP and growth rates are not as impressive as reported.
The bottom line: China is big, getting bigger, and its growth can’t be ignored – especially given its long-term investment potential. But there are near-term challenges, many of them substantial. If China does not have a major economic trauma, then indeed by 2030 or so it will be close to overtaking the United States. But we have a lot more than five years in which to make the necessary adjustments.
Our leaders should use this as a wakeup call.
Buying Gold?…
Martin Hutchinson, 03 May ’11
Shaw Capital Working Management News Worldwide: Cisco braces for biggest layoffs in its history
MAY 13
http://www.reuters.com/article/2011/05/12/cisco-idUSN1210284720110512
Thu May 12, 2011 5:26pm
* Analysts, on average, see Cisco cutting 3,000 jobs
* Could be biggest layoff in company’s 26-year history
By Jim Finkle
BOSTON, May 12 (Reuters) – Cisco Systems Inc (CSCO.O) is expected to cut thousands of jobs in possibly its worst-ever round of layoffs to meet Chief Executive John Chambers’ goal of slashing costs by $1 billion.
Four analysts contacted by Reuters estimated the world’s largest maker of network equipment will eliminate up to 4,000 jobs in coming months, with the average forecast at 3,000. That would represent 4 percent of Cisco’s 73,000 permanent workers. It also has an undisclosed number of temporary contractors.
Cisco’s previous record layoffs was set in fiscal 2002, when the company shed some 2,000 jobs, according to Canaccord Genuity analyst Paul Mansky.
That was back when the Internet bubble burst, ending a period of unrestrained spending on technology products as Internet start-ups and old school companies alike rushed to establish a Web presence.
But this time, Cisco cannot point to bad market conditions or a weak economy as excuses for wielding the ax to its payroll. Instead, Chambers last month took responsibility for mistakes in managing Cisco, saying it needs to focus on its core businesses and be more disciplined about expanding into new areas. [ID:nN05159515]
Thus, some of the layoffs are expected to come from businesses that Cisco pulls out of in coming months. Chambers, who has led Cisco for 16 of its 26-year history, has said he will pull out of some nonstrategic areas where Cisco is not the No. 1 or No. 2 player.
A month ago Chambers said Cisco would dump its Flip video camera business, ax 550 jobs and take a charge of $300 million related to the move. [ID:nN12157279]
He has yet to disclose which business will be next to go, but Cisco has invested heavily in a wide range of consumer products that have yet to take off, including its Umi home video conference system and home security cameras.
Cisco said on Wednesday that it planned to trim its workforce as part of a plan to cut some $1 billion in costs from its annual budget. Executives declined to comment on how many jobs they will cut, saying they will make an announcement by the end of summer. [ID:nN11260314]
Wall Street analysts, who were disappointed with the low revenue forecast that Cisco gave for the current quarter and the coming fiscal year, said they were pleased to see Cisco taking quick and decisive action on restructuring.
“It’s hard to criticize the pace and scope,” said Colin Gillis, an analyst with BGC Partners. “We all love the billion dollars in cost savings, but you never cheer people losing their jobs.”
Nonetheless, Cisco shares fell 4.8 percent on Wednesday, as analysts said it would take many quarters to revive the company. [ID:nL3E7FR05U]
One of Cisco’s key challenges will be to boost the revenue and profit margins of its single largest business — selling switches that form the backbone of the Internet and corporate networks — with a smaller workforce.
That unit’s sales have fallen in the past two quarters amid steep competition from Hewlett-Packard Co (HPQ.N) and Juniper Networks (JNPR.N), whose sales are growing.
Cisco’s planned job cuts stand out at a time when most other U.S. technology companies have started to add jobs after cutbacks during the recession. HP said last week that it was hiring more people to sell switches.
Cisco Chief Financial Officer Frank Calderoni said in an interview late on Wednesday that he did not know when switching sales will start to grow again.
“Part of the issue in there is competing with lower-priced competitors,” said Alkesh Shah, an analyst with Evercore Partners. “By cutting these costs — as well as being more aggressive in pricing — they will be able to be more competitive.”
(Reporting by Jim Finkle; Editing by Richard Chang)
http://www.reuters.com/article/2011/05/12/cisco-idUSN1210284720110512
Thu May 12, 2011 5:26pm
* Analysts, on average, see Cisco cutting 3,000 jobs
* Could be biggest layoff in company’s 26-year history
By Jim Finkle
BOSTON, May 12 (Reuters) – Cisco Systems Inc (CSCO.O) is expected to cut thousands of jobs in possibly its worst-ever round of layoffs to meet Chief Executive John Chambers’ goal of slashing costs by $1 billion.
Four analysts contacted by Reuters estimated the world’s largest maker of network equipment will eliminate up to 4,000 jobs in coming months, with the average forecast at 3,000. That would represent 4 percent of Cisco’s 73,000 permanent workers. It also has an undisclosed number of temporary contractors.
Cisco’s previous record layoffs was set in fiscal 2002, when the company shed some 2,000 jobs, according to Canaccord Genuity analyst Paul Mansky.
That was back when the Internet bubble burst, ending a period of unrestrained spending on technology products as Internet start-ups and old school companies alike rushed to establish a Web presence.
But this time, Cisco cannot point to bad market conditions or a weak economy as excuses for wielding the ax to its payroll. Instead, Chambers last month took responsibility for mistakes in managing Cisco, saying it needs to focus on its core businesses and be more disciplined about expanding into new areas. [ID:nN05159515]
Thus, some of the layoffs are expected to come from businesses that Cisco pulls out of in coming months. Chambers, who has led Cisco for 16 of its 26-year history, has said he will pull out of some nonstrategic areas where Cisco is not the No. 1 or No. 2 player.
A month ago Chambers said Cisco would dump its Flip video camera business, ax 550 jobs and take a charge of $300 million related to the move. [ID:nN12157279]
He has yet to disclose which business will be next to go, but Cisco has invested heavily in a wide range of consumer products that have yet to take off, including its Umi home video conference system and home security cameras.
Cisco said on Wednesday that it planned to trim its workforce as part of a plan to cut some $1 billion in costs from its annual budget. Executives declined to comment on how many jobs they will cut, saying they will make an announcement by the end of summer. [ID:nN11260314]
Wall Street analysts, who were disappointed with the low revenue forecast that Cisco gave for the current quarter and the coming fiscal year, said they were pleased to see Cisco taking quick and decisive action on restructuring.
“It’s hard to criticize the pace and scope,” said Colin Gillis, an analyst with BGC Partners. “We all love the billion dollars in cost savings, but you never cheer people losing their jobs.”
Nonetheless, Cisco shares fell 4.8 percent on Wednesday, as analysts said it would take many quarters to revive the company. [ID:nL3E7FR05U]
One of Cisco’s key challenges will be to boost the revenue and profit margins of its single largest business — selling switches that form the backbone of the Internet and corporate networks — with a smaller workforce.
That unit’s sales have fallen in the past two quarters amid steep competition from Hewlett-Packard Co (HPQ.N) and Juniper Networks (JNPR.N), whose sales are growing.
Cisco’s planned job cuts stand out at a time when most other U.S. technology companies have started to add jobs after cutbacks during the recession. HP said last week that it was hiring more people to sell switches.
Cisco Chief Financial Officer Frank Calderoni said in an interview late on Wednesday that he did not know when switching sales will start to grow again.
“Part of the issue in there is competing with lower-priced competitors,” said Alkesh Shah, an analyst with Evercore Partners. “By cutting these costs — as well as being more aggressive in pricing — they will be able to be more competitive.”
(Reporting by Jim Finkle; Editing by Richard Chang)
Thursday, July 7, 2011
shaw capital working management tips and articles: Privacy Policy
Shaw Capital Working Management Tips & Articles do not collect any information from our visitors other than the normal information that our website statistics automatically gathers. The following is just a standard Privacy Policy agreement.
We strive to safeguard the privacy of our website guests; this policy sets out how we will treat your personal information.
(1) What information do we collect?
We may collect, store and use the following kinds of personal data:
(a) data about your visits to and use of this blog;
(b) data that you gave us for the purpose of registering with us and/or subscribing to our website services and/or email notifications.
(2) Information about website visits
We may collect data about your computer and your visits to this blog such as your IP address, geographical location, browser type, referral source, length of visit and number of page views. This information may be used in the administration of this site, to improve its usability, and for marketing purposes.
(3) Using your personal data
Personal data submitted on this blog will be used for the purposes specified in this privacy policy or in relevant parts of the blog.
In addition to the uses identified elsewhere in this privacy policy, we may use your personal data to:
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In addition to the disclosures reasonably necessary for the purposes identified elsewhere in this privacy policy, we may disclose information about you:
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Except as provided in this privacy policy, we will not give your information to third parties.
(5) International data transfers
Information that we collect may be stored and processed in and transferred between any of the countries in which we operate in order to enable us to use the information in accordance with this privacy policy.
(6) Security of your personal data
Shaw Capital Working Management Tips & Articles will take reasonable precautions to prevent the loss, misuse or alteration of your personal information. Of course, data transmission over the internet is inherently insecure, and we cannot guarantee the security of data sent over the internet.
(7) Policy amendments
We may update this privacy policy from time-to-time by posting a new version. You should check this page occasionally to make ensure that you are aware of the latest changes.
(8) Third party websites
The blog contains links to other websites. Shaw Capital Working Management Tips & Articles is not responsible for the privacy policies (or content) of third party websites.
(9) Contact – You can contact us by email
info@shaw-capitalworkingmanagement.com.
We strive to safeguard the privacy of our website guests; this policy sets out how we will treat your personal information.
(1) What information do we collect?
We may collect, store and use the following kinds of personal data:
(a) data about your visits to and use of this blog;
(b) data that you gave us for the purpose of registering with us and/or subscribing to our website services and/or email notifications.
(2) Information about website visits
We may collect data about your computer and your visits to this blog such as your IP address, geographical location, browser type, referral source, length of visit and number of page views. This information may be used in the administration of this site, to improve its usability, and for marketing purposes.
(3) Using your personal data
Personal data submitted on this blog will be used for the purposes specified in this privacy policy or in relevant parts of the blog.
In addition to the uses identified elsewhere in this privacy policy, we may use your personal data to:
(a) improve your browsing experience by personalizing the blog;
(b) send information (other than marketing communications) to you which we think may be of interest to you by post or by email or similar technology;
(c) send to you marketing communications relating to our business which we think may be of interest to you by post or, where you have specifically agreed to this, by email or similar technology (you can inform us at any time if you no longer require marketing communications to be sent by emailing info@shaw-capitalworkingmanagement.com us.
(d) provide other companies with statistical information about our users – but this information will not be used to identify any individual user. We will not without your express consent provide your personal information to any third parties for the purpose of direct marketing.
(4) Other disclosures
In addition to the disclosures reasonably necessary for the purposes identified elsewhere in this privacy policy, we may disclose information about you:
(a) to the extent that we are required to do so by law;
(b) in connection with any legal proceedings or prospective legal proceedings;
(c) in order to establish, exercise or defend our legal rights (including providing information to others for the purposes of fraud prevention and reducing credit risk); and
Except as provided in this privacy policy, we will not give your information to third parties.
(5) International data transfers
Information that we collect may be stored and processed in and transferred between any of the countries in which we operate in order to enable us to use the information in accordance with this privacy policy.
(6) Security of your personal data
Shaw Capital Working Management Tips & Articles will take reasonable precautions to prevent the loss, misuse or alteration of your personal information. Of course, data transmission over the internet is inherently insecure, and we cannot guarantee the security of data sent over the internet.
(7) Policy amendments
We may update this privacy policy from time-to-time by posting a new version. You should check this page occasionally to make ensure that you are aware of the latest changes.
(8) Third party websites
The blog contains links to other websites. Shaw Capital Working Management Tips & Articles is not responsible for the privacy policies (or content) of third party websites.
(9) Contact – You can contact us by email
info@shaw-capitalworkingmanagement.com.
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