Archive for January, 2010

Prominent NY City Hedge Funds!

Tuesday, January 26th, 2010

NY Hedge Funds

Dear LA Member,

Enclosed is a list of the most powerful hedge funds in New York City.  Enjoy!

  • Alson Capital Partners, LLC
  • Amber Capital, L.P.
  • Arience Capital Management, L.P.
  • Atticus Capital, LLC
  • Blue Ridge Capital, LLC
  • Brahman Management, LLC
  • Brencourt Advisors, LLC
  • Bridger Management, LLC
  • Cantillon Capital Management, LLC
  • Caxton Associates, LLC
  • Citadel Investment Group, LLC
  • Clovis Capital Management, LLC
  • Coatue Management, LLC
  • Cumberland Associates, LLC
  • D.E. Shaw & Company, Inc.
  • D.M. Knott & Associates
  • Davidson Kempner Advisers, LLC
  • Duquesne Capital Management, LLC
  • Elm Ridge Capital Management
  • Eminence Capital, LLC
  • Fir Tree Partners
  • Force Capital Management, LLC
  • Fortress Investment Group, LLC
  • Galleon Management, LLC
  • Glenhill Advisors, LLC
  • Glenview Capital Management, LLC
  • GLG, Inc.
  • GoldenTree Asset Management, L.P.
  • Greenlight Capital, LLC
  • Highbridge Capital Management, LLC
  • HBK Investments, L.P.
  • Intrepid Capital Management, LLC
  • JANA Partners, LLC
  • Jay Goldman & Co.
  • JL Advisors, LLC
  • Karsch Capital Management, L.P.
  • Kinetics Advisers, LLC
  • Kingdon Capital Management, LLC
  • Kynikos Associates, L.P.
  • Level Global Investors, L.P.
  • M.D. Sass Investors Services, Inc.
  • Marathon Asset Management, LLC
  • Mason Capital Management, LLC
  • Maverick Capital, LTD
  • Millennium Management, LLC
  • Moore Capital Management, Inc.
  • MSD Investments
  • Omega Advisors, Inc.
  • OrbiMed Advisors, LLC
  • OSS Capital Management, L.P.
  • OZ Management, LLC
  • Paulson & Company, Inc.
  • Perry Capital, LLC
  • Principled Asset Administration, LLC
  • Ramius Capital Group, LLC
  • Renaissance Technologies, LLC
  • Ritchie Capital Management, LLC
  • Royal Capital Management, LLC
  • SAB Capital Management, LLC
  • Sandell Asset Management Corporation
  • Satellite Asset Management, L.P.
  • Scout Capital Management, LLC
  • Seneca Capital Advisors, LLC
  • Sigma Capital Management, LLC
  • Soros Fund Management, LLC
  • Steel Partners, LLC (U.S.)
  • SuttonBrook Capital Management, L.P.
  • Third Point Management Company, LLC
  • TIG Advisors, LLC
  • Tiger Global Management, LLC
  • TPG-Axon Capital
  • Trafelet Capital Management, L.P.
  • Tremblant Capital Group
  • Two Sigma Investments, LLC
  • Viking Global Investors, L.P.
  • Weiss Multi-Strategy Advisers, LLC
  • York Capital Management, LLC
  • Ziff Brothers Investments
  • Zweig-DiMenna Associates, LLC

~I.S.

Venezuelan Inflation to reach 45%!

Wednesday, January 20th, 2010

Chavez

According to Morgan Stanley,  inflation is set to rise to 45% for Venezuela in 2010.  This is after President Chavez cut the value of the Venezuelan currency by 50% months before the country’s reelections.  Depreciating Venezuela’s currency will boost the socialist state’s revenues, while spurring price instability.  Already, prices soared 25% in 2009.

Chavez said in an unprecedented speech that the bolivar would have two levels, a rate of 2.6 per dollar for food and health essentials and a 4.3 petro-dollar rate for everything else.  This depreciation could affect Chavez’s ratings amongst the country’s 28 million residents if it sparks political tensions.  The impact of this devaluation will severely impact Venezuela’s trade partners, especially Colombia.

Venezuela also devalued its currency in 2005 from 1,920 bolivars to 2,150 bolivars per dollar.   In 2006, inflation climbed to 103%.  However,  in 2008, it re-denominated the currency, ignoring the three zeros at the end of it!

In the short term, the value may help the country pay of its near term debts by increasing the revenues generated by oil exports.

For more information, please see Bloomberg…

~I.S.

The Jackson Laboratory: Founded in a Recession

Sunday, January 17th, 2010

The_Jackson_Laboratory

For discouraged entrepreneurs and VCs alike, the story of The Jackson Laboratory is bound to spark some enthusiasm.  The Jackson Laboratory was founded in 1929, during the Great Depression,  by Clarence Cook Little in Bar Harbor, Maine.   Today, it is the world’s most diverse lab mouse breeder and supplier with over 1, 360 employees.  The Jackson Laboratory was founded using money raised from wealthy CEOs in the auto industry, including Edsel Ford and Roscoe Jackson.  George B. Dorr donated land for the laboratory in Bar Harbor.

During the Depression, the employees of the lab used to fish and grow vegetables, acting like a commune to sustain themselves.  Thomas Roderick, a retired staff scientist recalls the staff growing its own vegetables until 1958.  He says that the lab ran on the founder’s charisma and scientific genius.  Little and his crew wrote many papers on cancer and genetics.  They noticed that the genome of mice is almost identical to that of humanes.

Today, the Jackson Labs have over 4,500 mouse models available for sale to other labs.  It is now an internationally known research lab with an annual budget of $169 million.  It has attracted funding from the American Cancer Society, the National Cancer Institute, and the national Institutes of Health.

For more information, please refer to Mass High Tech…

~IS

Medical Device Firms Avoid Recession

Sunday, January 17th, 2010

Boston Scientific

Revenue growth was unstoppable at two of New England’s largest medical device firms, Philips Healthcare and Covidien PLC.  Boston Scientific was also a heavyweight in 2008.  Philips had sales of $11.1 billion in  2008, which was up from $8.9 billion in 2007.  2009 sales may not be as good as 2008 sales due to cuts in capital spending across the United States.  Despite this trend, sales of surgical instruments, medical imagining machines, and diagnostic monitors are holding up.

The largest medical device firms in the United States are:

TOP MEDICAL DEVICE MANUFACTURERS

1. Johnson and Johnson $17.7B
2. GE Healthcare $12.1B
3. Medtronic $10.1B
4. Baxter International $9.8B
4. Cardinal Health $9.8B
6. Tyco Healthcare $9.5B
7. Siemens Medical Solutions $9.2B
8. Philips Medical Systems $7.5B
9. Boston Scientific $6.3B
10. Stryker $4.9B
11. B. Braun $3.9B
12. Guidant Corp. $3.6B
13. 3M Healthcare $3.5B
14. Zimmer Holdings $3.3B
15. Becton, Dickinson & Co. $3B
16. St. Jude Medical $2.9B
17. Kodak Health Group $2.7B
18. Hospira $2.6B
19. Fresenius $2.5B
20. Smith & Nephew $2.4B
21. Synthes $2.1B
22. Alcon $2B
23. Biomet $1.9B
24. C. R. Bard $1.8B
24. Terumo $1.8B
26. Dentsply International $1.7B
27. Invacare $1.5B
28. Gambro $1.4B
29. Dräger Medical $1.3B
30. Varian Medical $1.2B

For more information, please refer to Mass High Tech…

~IS

ADC2: Video Compression Startup in Boston

Sunday, January 17th, 2010

video tech

ADC2 was founded in 2008 by Sunil Reddy, Angel Decegama, and Lewis Stoller.  It is a startup aiming to improve the speed of online video by enhancing compressing technology for high-definition movies.  In 2006 Angel and Lewis launched TrueLight Technologies, which was based on wavelet transformation processing, a process that was developed in the 1980s to manipulate the data in the individual image frames of a video file.

Truelight was started simply to serve the security market, where resolution is a paramount concern.  ADC2′s potential customers are Comcast, Motorola, and AT&T.  AT&T recently asked the firm if it could move forward and provide pricing for its new products.

ACD2′s process can take a HD video that would be about 500MB normally and compress it down to 140MB or even 73MB, keeping almost the same resolution.  At 140MB, the HD video could play across a 1.5 Mbps connection.  The five person team has been funded solely by its partners.

For more information, please refer to Mass High Tech…

~IS

Largest NE Biotech Employers of 2010

Sunday, January 17th, 2010

biotech

Please refer to this list if you are interested in applying to Biotech employers or are interested in exploring the Biotech industry:

1 ) Genzyme Corp.

2 ) Biogen Idec

3 ) IDEXX Laboratories Inc.

4 ) Millipore Corp.

5 ) Charles River Laboratories

6 ) PAREXEL International

7 ) The Jackson Laboratory

8 ) Vertex Pharmaceuticals Inc.

9 ) Shire Human Genetic Therapies (HGT)

10 ) Millenium: The Takeda Oncology Co.

For more information, please refer to Mass High Tech…

~IS

Monsanto: Genetically Engineering Our Meals

Sunday, January 17th, 2010

monsantologo

Monsanto, a company with a $44 billion market cap, sold $7.3 billion of seeds and seed genes in 2009.  Its total revenue for the fiscal year was $11.7 billion and net profit was $2.1 billion (margin of 18%).  The companies have increased at a 18% clip over the past five years, and return on capital has averaged 12%.

Over the past few years, Monsanto has been pivotal in improving farm productivity across the globe.  The company has monopolies in certain seed markets.

Who runs Monsanto?  Monstanto’s CEO is Hugh Grant, 51, who says that the new generation of biotech crops will help address the fact that there will be a sharp increase in the demand for food as emerging markets continue to grow at a rapid pace.   Especially as the demand for meat rises in poorer countries, feedstock farming needs to expand at an exponential rate, otherwise prices will skyrocket.   Mr. Grant’s new seeds will provide more yield to growers.  He hopes to increase gross profit by 25% over the next three years ($6.5 billion in 2009).  In order to lower costs, Monsanto laid of 8% of its staff in the fall.

Biotech genes in Monsanto’s products ensure that rodents, bugs, weeds, and drought do not hurt a crop’s annual yield.  Ninety percent of U.S. soybean production and 80% of corn and cotton production use Monsanto technology.  Monsanto’s business model is based on one concept, productivity.   Its goal is to increase the bushels per acre for every crop using less fertilizer and less pesticides.

Monsanto was founded in 1901 as an additives and chemical company.  Its biotech business was started in 1981 and has been growing rapidly ever since with the use of the bacteria, Agrobacterium tumerfaciens.  This bacteria inserts new genes into plants, to make them more resilient to pests and inclement weather.  Not only do Monsanto seeds reduce the need for fertilizer and chemicals, they reduce the power consumption of heavy tilling and reduce soil erosion.

The company focuses mainly on three crops: corn, soybeans, and cotton.  One risk the company faces is that its patent on its soybean seed expires in 2014, which could potentially hurt sales by $500 million, as competitors encroach on this space.  The Department of Justice (DOJ) has also been investigating the company because of its 90-95% market share in certain seed products.

For more information, please refer to Forbes…

~IS

BlackRock, $3T in Assets Under Management

Sunday, January 17th, 2010

BlackRock

BlackRock is certainly one of the most powerful financial firms today.  Not only does it manage $3 trillion dollars for the likes of China Investment Corp., FedEx, Boeing, ExxonMobil, the Federal Reserve, and the California Retirement System, it managers $165 billion in troubled assets for the U.S. government.

Recently, BlackRock even acquired Barclay’s ETF business, Barclays Global Investors and awarded $1.5 billion to its employees in bonuses.  So what makes Barclays so successful?  Risk management.  It has helped the U.S. government manage troubled assets from AIG, Citigroup, Freddie Mac, and Fannie Mae.  In 2007, JPMorgan also hired BlackRock to evaluate the risk of Bear Stearns assets after its bankruptcy.  BlackRock also sells a range of different risk measurement systems, including a system called Aladdin.  Thirty seven major clients use Aladdin to manage the risk of their fixed income portfolios, including BlackRock itself.

What does BlackRock do?  BlackRock manages assets that include equity, fixed-income, hedge, mutual, and cash funds.  It also provides advisory services to corporate pensions and sovereign wealth funds.  In BlackRock’s advisory business, 2,300 people work to serve clients and provide risk management services.  In 2009, the company may net $980 million on $4.3 billion in revenue.  That is a net margin of almost 25%.  It is certainly a fantastic business.

Most of BlackRock’s fixed income business consists of relative value managers, who look to exploit differences in spreads between corporate securities, Treasuries, and mortgages, depending on the risk-return properties of each.

Who runs BlackRock?  BlackRock is run by Larry Fink, a former bond trader for Credit Suisse First Boston (CSFB) in the 1970s.  He helped create the mortgage securities trading business.  He joined BlackRock, after the firm was spun off from Blackstone in 1988.  The firm went public in 1999, when the seven original cofounders, including Fink cashed out.

BlackRock also has 425 portfolio managers around the world.  It is certainly a fantastic place to begin one’s career!

For more information, please refer to Forbes magazine…

~I.S.

Free Class on M&A & Hostile Takeover Defense, Friday, Jan. 15

Friday, January 15th, 2010

LA Classy4

Class will be held at 140 Clarendon Street in Boston at 4pm.

For more information, please contact info@leverageacademy.com!

The following topics will be covered:

Merger Consequences Analysis

Income Statement Impact

Balance Sheet Impact

Purchase Accounting

Goodwill

Why premium over Fair Market Value?

SFAS 141, 141R, 142

EPS Adjustments

Exchange Ratio

Pro Forma EPS

Pro Forma Shares Outstanding

Synergies

Hostile Takeovers

Poison Pill

Rights Plan in Action

Soros Fund to Open Office in Hong Kong

Thursday, January 14th, 2010

Soros

The $450 billion mutual fund and hedge fund industry in China is about to see massive change.  Why, you may ask?  Mr. Soros himself is taking the leap into the heart of East Asia.  I had wondered over the past few years why it had taken established investors so long to enter Asia.  It took Warren Buffet until two years ago to aggressively pursue global diversification of the Berkshire Hathaway portfolio.  Now, with the King of Global Macro setting the stage, a man who lived penniless in London working odd jobs before he joined the finance industry as an arbitrageur, only to become the Founder of the legendary Quantum Fund and arguably the biggest philanthropist of his time, there will be considerable change in the Chinese regulatory environment.

Why now, you may ask?  Well this year, China approved futures trading and shorting in the mainland.  As a result, the historical 30% discrepancy between Hong Kong traded shares and shares traded on the Shanghai and Shenzhen Exchanges may disappear.  What is this called?  ARBITRAGE.   And who is the King?  Mr. Soros himself.

The Soros Fund is now a $25 billion fund, and has taken the right steps over the past few years with its global perspective.  There will be significant wealth creation in East Asia over the next 5-10 years.  Even stagnant economies like Japan will start pulling their weight.  The Japanese posted positive employment numbers for the first time in two years today, which fared well for their currency.  According to Charles Stucke of Guggenheim Investment Advisors, LLC, there are still many informational asymmetries that need to be addressed in East Asia for traders who understand the markets there.

Soros, now 79, has immense faith in the Chinese economy due to its growing reserves and growing domestic demand for consumption.  A fund controlled by Soros, American Aviation Investment Co., was one of the first funds to invest in a Chinese airline company, Hainan Airlines in 1995.  Recently, Soros also hired Mr. Chang, a former MD at Tiger Asia Management LLC.

According to Singapore based Eurekehedge, global hedge funds had a great year in 2009, returning 19%.  That is the best performance in over 5 years.

For more information, please visit Bloomberg….

~I.S.