Tuesday, 23 September 2014
Last updated 56 min ago
Nov 17 2011 | 1:02pm ET
Delphi Automotive's return to the public markets could not have come at a better time for one seriously downtrodden hedge fund manager.
Delphi, which filed for bankruptcy six years ago, went public this morning and promptly dropped below its offering price of $22. But that's no matter—or small matter—for Paulson & Co., which may have made more than $400 million on the deal.
The New York-based hedge fund, which has seen its main hedge funds lose double-digits this year, was to be the largest participant in the IPO, selling more than 80% of its shares in the company. But Paulson likely scooped up the convertible debt that became its stake in Delphi for pennies on the dollar; Bloomberg News estimates that Paulson and other investors who snapped up the debt paid an average of 67 cents per share, or $14 million for the $453 million in shares Paulson sold today.
If all of that is the case, Paulson today made back almost all of the money it lost on Sino-Forest Corp., the Chinese timber company whose stock plummeted in June after it was accused of overstating its timber holdings. Paulson had been Sino-Forest's largest shareholder.
Paulson still owns about 16% of Delphi, which is controlled by lenders including Elliott Management and Silver Point Capital.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.