Toppling Goliath?

Leo Kolivakis's picture




 
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Thu, 04/29/2010 - 14:38 | 324180 wpw
wpw's picture

So does this mean pension funds will be using some of the buccaneering practises of private equity, such as loading up takeovers with debt? 

Or, since debt is now harder to come by, does this mean private equity managers are now targetting pension funds as the new source of the funds they need to build their empires?

 

Thu, 04/29/2010 - 16:39 | 324379 kaiserhoff
kaiserhoff's picture

We saw the genius of this sort of thing last summer when they took a fling on commodities.  I hate the superspecialized markets we're in now.  But if you're not an expert, you're probably the sucker.

Thu, 04/29/2010 - 14:46 | 324198 Leo Kolivakis
Leo Kolivakis's picture

BINGO!

 

 

Thu, 04/29/2010 - 12:21 | 323812 Sudden Debt
Sudden Debt's picture

The higher the revenue, the higher the risk.

 

 

Thu, 04/29/2010 - 11:38 | 323700 earnyermoney
earnyermoney's picture

Leo

What's the regulatory difference between a Private Equity firm and a Hedge Fund? It seems both rely on funds from private investors.

Thu, 04/29/2010 - 11:50 | 323730 Leo Kolivakis
Leo Kolivakis's picture

From a regulatory perspective, there isn't much of a difference. They are all part of the shadow banking system and face little oversight, especially in the US (UK is different). From an investor's point of view, hedge funds are more liquid because you're not tying up your capital for 7+ years.

Thu, 04/29/2010 - 12:46 | 323865 velobabe
velobabe's picture

private equity.

what's shadow banking system, mean? shadow=dark.

little oversight. they get away with bad stuff, more often?

no sec overlooking these guys, huh.

can public people invest in private equity firms?

just asking.

Thu, 04/29/2010 - 14:35 | 324169 Leo Kolivakis
Leo Kolivakis's picture

No, only "sophisticated" investors (institutions and high net worth individuals) can invest in hedge funds, but there is an effort to "index" absolute return strategies and offer them to retail Joe & Jane. I wouldn't touch that crap with a ten foot pole.

Thu, 04/29/2010 - 11:28 | 323677 earnyermoney
earnyermoney's picture

Leo

A nice helping of Schadenfrued for this Hurricanes fan. LOL

Thu, 04/29/2010 - 13:31 | 323995 Carl Spackler
Carl Spackler's picture

The Montreal Canadiens are Goliath, and they knocked off David (Washington Capitals).

So how does this picture fit with the article?

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