I don’t know why, but when other people in the financial industry do poorly, I get all happy. Don’t panic. I’m not alone in this shameful display of schadenfreude; everyone in the business wishes doom upon his competition. The only person “The Fly” roots for is Howard. I’d like to see Howard make 200% for the next 10 years, raise 50 billion dollars, then fart on live television, following a Larry Kudlow question.
Anyway, as you know, with the commodity tap out, many funds are rumored to be folding tent, including Cramer’s favorite: Atticus Capital.
With 13 billion under management, an Atticus failure would definitely cause ripples. The question is: are they done?
You decide:
Here is their most recent reported holdings, in order:
Union Pacific Corporation [[UNP]]
Burlington Northern Santa Fe Corporation [[BNI]]
ConocoPhillips [[COP]]
MasterCard Incorporated [[MA]]
NYSE Euronext [[NYX]]
Occidental Petroleum Corporation [[OXY]]
Freeport-McMoRan Copper & Gold Inc. [[FCX]]
Crown Castle International Corp. [[CCI]]
Baidu.com, Inc. (ADR) [[BIDU]]
Norfolk Southern Corp. [[NSC]]
Peabody Energy Corporation [[BTU]]
Canadian Natural Resource Ltd (USA) [[CNQ]]
The Boeing Company [[BA]]
Praxair, Inc. [[PX]]
Focus Media Holding Limited (ADR) [[FMCN]]
Genomic Health, Inc. [[GHDX]]
In other news, U.S. Treasury default swaps hit a record today, thanks to the Fannie/Freddie bailout.
Contracts on U.S. government debt increased 3.5 basis points to a record 18, up from 6 basis points in April, according to CMA Datavision prices for five-year credit-default swaps at 5 p.m. in London. Credit-default swaps on German government bonds cost 8 basis points and Japanese bonds 16.5 basis points.
So, contrary to what all of the dollar circle jerkers are saying, the U.S. is not better off than Europe, when it comes to possible insolvency. In other words, in order to insure yourself against the U.S. Government defaulting on their obligations, you now have to pay through the nose.
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“Philosopher and sociologist Theodor Adorno defined schadenfreude as ‘largely unanticipated delight in the suffering of another which is cognized as trivial and/or appropriate.'”
Shut up.
It always cracks me up when huge financial institutions fail, there’s nothing strange about that.
It’s amazing the fees these funds get… to lose huge amounts of other peoples money.
I’d rather do it myself.
It takes skill to get a fund up to 13 bill.
They just lost their ways.
…sort of like Bill Miller.
More good news!!!!
The OPEC oil group has agreed to cut its real output by 520,000 barrels per day in the next 40 days, OPEC’s President and Algerian Energy Minister Chakib Khelil said Tuesday.
To what extent do you think it was a rising tide lifts all boats type of thing with regards to AUM? They (generic they) worked throughout the 90s, when the dow went up like 8x, giving them better performance, attracting more assets.
I mean, at this point (hindsight), the index performances from the 80s and 90s don’t look repeatable.
perhaps i should short LM as a hedge
Fly, does LM’s recent change in executive leadership alter your outlook for LM tomorrow?
http://www.prisonplanet.com/the-worsening-debt-crisis-who-got-us-into-this-mess-and-what-are-the-real-political-options.html
Fly,
Stop scaring people. Why don’t you post some hot celebrity news here? Or tell everyone to go buy new gadgets and they’ll be okay, like Fucking Kneale.
There doesn’t seem to be any safe harbors. With coals, oils, metals, etc down 30-40% in the last 7 sessions alone, there must be many funds unwinding. I can’t see any way out of this downward spiral. The crash is coming.
Speaking of which, thanks for sponsoring my new contest.
-DT
So the unwinding can END or slow down. Hedge funds don’t own ALL the resource stock shares.
And just which stocks are supposed to crash?
Lehman reporting a week early get rdy for the battle
No, the story ends with a crash. All stocks crash and we all live in cardboard houses.
-DT
Resource stocks will be the imperial buy of a lifetime, once these funds get flushed out.
Did you analyze their patent portfolios?
My models show the intrinsic value is less than 4¢ on the Amero.
Correction: We all live in sheet rock houses.
buffet always wins —>long USG should prosper with demand for millions of sq ft of sheet rock.
Think like a Comrade. Whatever resource Comrade Putin will try to control will go up in value, no?
I agree about them being great buys. I hope it’s soon, because they nearly flushed me today as I dabbled.
Still, crash, cardboard.
Oh, and keep piling on the negative karma, fuckers. It just makes me stronger.
-DT
Please put all negative karma here.
Thank you.
-DT
Just for you DT … the cardboard play is SSCC Smurfit-Stone Container Corp.
I lost over 1/2 of what I gained yesterday – I sold SMN for a small profit and watched it rise on up without me. I have some DUG and SKFie which were some comfort in this friggin meltdown – I am over 65% cash which proves that I am not a total idiot messing with stocks in this market.
“Resource stocks will be the imperial buy of a lifetime, once these funds get flushed out.”
Truer words never spoken, especially by the Appendix-less.
True fact: Did you know that 2/3’s of all appendicitis sufferers come out of their abdominal extractive surgery with “the second sight?”
Who even needs a fucking Time Machine now?
__
I have a theory on these hedgies melting down.
The more obnoxious/ghey and/or twee the name, the faster they speed to liquidation.
What was the name of that fucker that went down last week? “Aesthete” or some shit? Something stupid in any case.
And now “To Kill a Mockingbird Capital?”
These people had $13 billions in OPM? Are they fucking kidding me?
I mean, what was the progression on that name?
Ooooooh, I always LOVED “To Kill A Mockingbird” ever since we did the novel/filmstrip thing freshman year in high school. Atticus Finch was my herroooooo!
I mean, were they trading for liberty and justice for all, and um, “against racism,” or were they just trying to make egregious shitloads of money like all the other grasping bastards in that business?
A guy who calls his hedge fund “Rapine and Bludgeoning Asset Mongering” — that’s the guy I have respect for.
Fucking Gregory Peckerheads.
___
Once Atticus Capital heads to liquidation, how much longer before The Boo Radley Trust goes tits up?
__
My commodity buy list
GLD
SLV
USO
UNG
DBA
GDX
POT
FCX
MON
MOS
IPI
Tell me if I missed anything.
Here is mine:
DIG
IEO
ARD
UNG
KOL
POT
MOS
thanks fly. the oil yuutz nations are just so greedy that the oil collapse will now GASTHER steam. they don’t save a nickel. they are idiots and they cant go two months without oil at $140 so will panic and pump more than ever to feed their diseased spending and whoring habits
FCX too, of course.
why is it okay for you to shadenfreude the failures of other traders and not me? oh yeah, it’s your blog.
“A man’s blog is his castle, and he is free to therewith maintain hypocrisy and the double standard with delight, heaping scorn upon others while tolerating none for himself.”
– bait bucket III –
Howard:
You may want to retract that: OPEC just cut by more than 500,000 barrels per day.
Something tells me this “bait bucket” is somewhat similar to the banned “scum bucket”
did u ban scum bucket?
hmmm…
funny, because u always invite he / she back at a later date.
i am trying to be good. please don’t banish me mr. fly. i didn’t say anything mean while u were sick. can’t we all just get along?
You’ve got to respect class A groveling like that.
_______
Hey Fly, it’s past midnight, man. Time for the warm milk and ex-Lax chocolate treat.
Get some sleep.
___
PS — I covered the rest of my MOS short at the close today, but not because I think that trade is over.
Be careful.
“The question is: are they done?”
Are you fVckin serious? Is there face still intact?
My parenthesized number is the last 5 trading days:
Union Pacific Corporation (UNP: 70.78 -6.19%)
Burlington N.Santa Fe Corp. (BNI: 96.46 -5.87%)
ConocoPhillips (COP: 68.31 -8.54%)
MasterCard Incorporated (MA: 206.70 -5.79%)
NYSE Euronext (NYX: 36.99 -11.25%)
Occidental Petroleum Corporation (OXY: 66.17 -8.01%)
Freeport-McMoRan Cp & Gold Inc. (FCX: 65.16 -9.58%)
Crown Castle International Corp. (CCI: 34.86 -3.01%)
Baidu.com, Inc. (ADR) (BIDU: 254.13 -7.38%)
Norfolk Southern Corp. (NSC: 62.56 -7.33%)
Peabody Energy Corporation (BTU: 45.52 -8.81%)
Canadian Natural Resource Ltd (USA) (CNQ: 69.94 -7.43%)
The Boeing Company (BA: 64.02 +0.17%)
Praxair, Inc. (PX: 81.91 -2.95%)
Focus Media Hldg Limited (ADR) (FMCN: 25.82 -6.99%)
Genomic Health, Inc. (GHDX: 21.55 -1.82%)
grovel grovel yum yum yum 😀
i even hope your tummy gets all better.
[this is me being nice]
fuckery, it erased my work. lame.
just consider it a bloodbath beyond all bloodbaths, ever.
i love the news bites about LEH.
‘they’re done talking…no, i mean, yes, they’re talking’
01:43AM KDB seeking control of Lehman for $6 billion: report Reuters
01:07AM UPDATE – KDB, Lehman talks ended – S.Korea govt official at Reuters
(scene: thirsty, disheveled man in the middle of a burning desert. This is Dick Fuld.)
Fuld: CAPITAL!!! (trips and falls, picks self up) I need CAPITAL!!
(Man sees shimmering piles of money under a palm tree in the distance, with a smiling Ben Bernanke beckoning. Obviously a mirage. Man heads toward it.)
Fuld: (licking lips) Fresh capital!! CAPITAL!!! (looks at sky) Thank you!!!
(mirage disappears as man approaches)
Fuld: (grabs the hot sand, letting it fall between his fingers) NO!!! Where did it go?? Please… capital…
(A new mirage in the distance… Hank Paulson and a group of hula girls are dancing. Mr. Paulson is grilling stacks of money on a barbecue)
Mirage Paulson: Hey buddy, how about a cold beer? And maybe a $5 billion capital infusion, you know, one for the road?
Fuld: YES!! THAT’S WHAT I NEED!!
(Again, the mirage disappears)
(Further mirages appear, including the CEOs of all major banks and the heads of several sovereign wealth funds, circling the man and taunting him)
Fuld: (crying) No!! No!! There’s no capital! THERE’S NO CAPITAL!!
(Man falls over dead. Wide shot. Vultures descend and tear him to pieces.)
~~~~ FIN ~~~~
Quote of the Day:
“The Shanghai market seems to be stabilizing, but I think people are not very enthusiastic as they lost a lot of money recently,” said V.K Chan.
Plebs, I toss you a bone, out of the remaining shred of decency left in this body.
STFU, and learn something for once in your God-forsaken lives.
LEH
*****
Thanks Bildy,
Next time, tell your “Insider” to work on his spelling and use of colloquialisms, and he’ll come out with a far more polished product.
Remember, the hocus pocus bullshittery is easy, it’s maintaing a consistent style and voice over 32 pages that’s difficult.
Back to the drawing board.
___
Adam Michael
09:08:30 AM
No positions in stocks mentioned.
Quick energy note
I am looking for crude to find a short-term bottom in the very near-term. Chinese crude oil import numbers are out for August and demand is still strong. See the chart below.
http://admin.minyanville.com/assets/FCK_Aug2007/File/A1.%20T.woo/amic%201.jpg
Too many have been playing the short commodities play based on index fund selling… the trade is long in the tooth and I would not be surprise to see crude bottom in the next day or two.
Fly’s fave, Mr Slope of Dope, has a good looking short – AMX
also: AYI
Bruce,
Wanted to thank you again for all these Minyan updates. I’m finding that Bennet Sedacca guy’s stuff very helpful these last few weeks.
And his brother, Neil, can really spin out a Warwick hit, can’t he?
__
Question? Take a look at what happens in the middle of a BEAR market. If you just won a ton of money. Say 5mil. Would you put money in stocks now? You don’t have to find the bottom. Most big gains happen 3months after the bottom. You can make 3xs you money at that point without much risk. So save some money like the smart fuckers that know the market is a lot smarter the them!! This is not directed as advice to the FLY. The FLY has more money to trade than most the people on this blg combined. He is on a different level than blog fuckers.
I agree, Jake. Thanks for the minyanville updates Juice. They are much appreciated.
Berkshire, in Blow to Banks,
Reins In Its Deposit Insurer
By DAMIAN PALETTA
September 10, 2008; Page C1
Warren Buffett’s Berkshire Hathaway Inc. has told one of its subsidiaries to stop insuring bank deposits above the amount guaranteed by the federal government, dealing a fresh blow to the financial-services industry as it tries to assuage anxious customers.
[Buffett, Warren]
The subsidiary, Kansas Bankers Surety Co., is notifying about 1,500 banks in more than 30 states that it will no longer offer a program called “bank deposit guaranty bonds.” KBS is an 18-employee subsidiary of Berkshire Hathaway, according to the parent firm’s 2007 annual report. It is one of a handful of firms that offer such insurance, a big selling point for banks trying to attract wealthy customers.
Two people briefed on the matter said the order was made Monday by Mr. Buffett, Berkshire Hathaway’s chief executive. Chuck Towle, a senior vice president at KBS, declined to comment on why his firm was leaving the business. “We have decided to do so,” he said. “We’ll work with each individual bank and work it out with them.”
Mr. Towle wouldn’t confirm or deny Mr. Buffett’s involvement, calling it “strictly rumor.” Mr. Buffett declined to comment.
Eleven banks have failed this year. Seven have fallen since July 11, a concentration not seen since the savings-and-loan crisis of the late 1980s and early 1990s. The Federal Deposit Insurance Corp. backs deposits of as much as $100,000 on most accounts or $250,000 on some retirement accounts.
That Mr. Buffett is withdrawing from this insurance market is an indicator of how many in the industry are worried about future bank failures.
In some cases, companies that acquire failed banks will buy all the deposits, making the government insurance limits irrelevant.
But customers with large deposits can lose money if the acquiring bank doesn’t take on the extra deposits. When Columbian Bank & Trust Co., of Topeka, Kan., failed Aug. 22, there were about 610 accounts with $46 million total that potentially exceeded government insurance limits, the FDIC said.
KBS insured some deposits at this bank and lost money in the failure, people familiar with the matter said. Mr. Towle declined to comment on whether the bank was a customer.
Rodney Sargent, CEO of BancInsure Inc., a KBS competitor, said many firms are expected to compete for KBS’s customers because the company has a large network across the country.