The Koreans laughed at Dick Fuld’s asking price.
Negotiations have been “difficult because of differences over price,” Korea Development Bank CEO Min Euoo Sung said today.
And, the first of many hedge funds, with GIANT expsoure to commodities, calls it quits.
The Ospraie Fund lost 26.7 percent in August, after a “substantial sell-off in a number of our energy, mining and resource equity holdings,” Anderson, 41, wrote in the letter today.
Ospraie’s top 10 holdings:
International Paper Company [[IP]]
Cytec Industries Inc. [[CYT]]
XTO Energy Inc. [[XTO]]
WESCO International, Inc. [[WCC]]
Alcoa Inc. [[AA]]
[[SEB]]
Arch Coal, Inc. [[ACI]]
Lennar Corporation [[LEN]]
Calpine Corporation [[CPN]]
E-House (China) Holdings Limited [[EJ]]
Damn they got rolled on.
Clarification Update: Some of you must be scratching your heads wondering, “hmmm, what the hell is Fly talking about?”
Well, just so you know, the retards at Lehman owned 28% of the Ospraie fund.
Now, I know many of you are appalled by the ridiculous one month loss posted (27%) by the fund. However, you need to remember, this was a commodity focus fund. Therefore, it’s the nature of the beast, to a small degree. I am sure the investors of that fund had some pretty good months, prior to the recent collapse.
Commodities are for people who wear bow ties and do lines of blow off of cows.
This failure is the canary in the coal mine; mark my words.
All of the i-banks were lauding their commodity desk gains, over the last 6 months, especially Goldman Sachs Group, Inc. [[GS]] and Morgan Stanley [[MS]] . They were pounding their chest, as “Santa Claus of the corn fields” brought them great fortune, from his evil bag of rapid inflation and whorish dollars.
Oh, well, that trade is dead and so are its participants.
Watch very closely as the i-bankers begin to report massive trading desk losses.
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Be interesting to hear what LEH says tomorrow.
Fly, maybe you can show Anderson a thing or two about hedging.
hahaha ospraie is the fucking worst.
it’s like a bad movie being rerun on oxygen network.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5ReSgLY0jAE
Michael Phelps is on Bloomberg right now.
MBA does not equate to wise fiduciary of another persons money, or well informed money manager.
I was conned into a sales pitch meeting by my cunt of a friend at mass mutual, and the guy that wanted my money was trying to explain to me that how after bootlegging, the Kennedys and the Rothmans got rich from a term life health insurance loophole {note: I think he meant Rothchilds? Rockefellers? Never heard of the Rothmans, but hey, I guess it sounds Jewish enough for his purposes}
He told of how I could make 8% a year easy, risk free, dividend paid every year since the dawn of time, 10 year lockup period before whole.
This was after he told me he went to USC and blah blah blah and made this much and something another.
Then I was like, “well, why can’t I just contribute 4k a year to my Roth IRA, get the exact same tax treatment and benefits, have no mgt. fees, and have liquid access to my capital?”
That was more or less the end of the meeting.
FUCKING IDIOTS!!!!!!
Danny,
Rothmans is a Canadian cigarette company http://www.rothmansinc.ca/eng_home.asp
Don’t think that’s the loophole Mr. USC was meaning. Too many ‘tards out there licensed to deal with money.
Variable annuities are the biggest scam going.
Shanghai printed a new 52-week trading low.
BTW, Rothmans cigarettes are good.
If we’re going to be spending money on Iraq for the next 100 years, why not simply buy the middle east… it’ll probably be cheaper, and we can control the price of oil, and it will pay for itself.
We bought Alaska from Russia in like 1867, why can’t we buy that shit out. Just start small, at like Kuwait, they got plenty of oil, then maybe expand into Saudia Arabia and Afghanistan and Iraq and Iran.
Then we don’t need to force them out by weaponry, we just threaten to drop bacon on them and all the Muslim religious extremists leave because if they touch Bacon they think they’ll go straight to hell or something. Once they leave, we can put pig slaughter houses and ham sandwhiches on the border to keep them out for good.
It’s the ultimate “purification” technique.
THen we can pump out all the oil and put them in reserves in Alaska, and sell the country back and let them do whatever the hell they want with their goat nuts.
Donny sez:
Never heard of the Rothmans, but hey, I guess it sounds Jewish enough for his purposes.
Maybe he meant “Rothstein” who was a gangster of similar provenance to Joe Kennedy? I want to say his first name was Arnold, but am too lazy to look it up. May have been one of Lucciano’s first partners.
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I second Fly on the annuities bullshit. A way for lazy brokers to pay tuition.
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I said that, not Donny, unless that was unintentional/cutesy Jake.
But yes, I third what the Fly said.
BTW:
Leh owns 28% of this failed fund.
State-owned Korea Development Bank has made a proposal to acquire 25 percent of U.S. investment bank Lehman Brothers for as much as 6 trillion won ($5.3 billion), a newspaper reported Wednesday.
Shit, Danny, either my eyes must be failing, or I was thrown by the unusual amount of cursing coming from you…
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sorry, bad habit.
people make bigger mistakes, I wouldn’t beat yourself up about it.
i’ve been thinking that GS probably got beat up in commodities recently.
nevertheless, they’re pretty good hedgers, so it will be interesting to see how they fared this quarter. probably won’t find that out until december, though.
MBI is making my undies pink ! anyone else?
JAKE-rothstein was the gent who fixed the 1919 world series-chicago black sox.Did a paper on it freshman year-lifted books from the library of congress returned them upon completion.what was i thinking.
http://www.cnbc.com/id/26508950/?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo
Anyone see my retirement fund?
One observation about yesterday. That was a KEY reversal on good volume with oil down big. If it wasn’t for the BKX being up 2.88%, that would have been all she wrote for this bear rally.
Conclusion … all eyes should be on the BKX from now on. When the BKX fails, the bear will be back in a big way.
LEH is up
Juice, I agree 100% I wanted to do a post about it last night, but ran out of time, due to Lil Wayne.
Fly
Why do you think he i-banks are that exposed? I worked at a major house and the risk they take is puny compared to the the clients. I ran the currency trading side. These banks don’t take as big a risk as you think.
I think you don’t have this right.
Chivas, your link didn’t work… what were you trying to highlight?
BTW — the “Prince” think from last night was quite funny..
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Did kdb just valued leh around $30/share by investing $5.3 bil for 25% stake? Am I reading right? Are they nuts?
BTW — to Chivas and Bruce–
The Trannies reversed ugliest yesterday… on dropping oil prices…
Odd, no?
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I worked at a major house and the risk they take is puny compared to the the clients.
You ran the currency desk, which means you were likely a shareholder, and yet you never took a gander at your firm’s balance sheet?
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Jake, lol. i just tried the link and it worked. it’s the ceo of tso, bruce smith, on fast money yesterday, saying margins will improve. i heard him say, margins have been improving.
right Jake – another good clue that the market is hanging by a thin thread
Ruh roh, Chairman Park,
Rehman is reaking!
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TIVO ready to BTFO.
FED looking pretty weak today, have a look 🙂