David Tepper: Bullish on the Fed, Bullish on the Market, Bullish on Everything

David Tepper: 

"Fed Won't Taper For A Long Time" "Generally Speaking Market Will Go Up"

A botched case against Hedge Fund Billionaire Steve Cohen

Steve Cohen, Chicago billionaire hedgy, is without doubt enjoying his 4th of July weekend holiday. Throw some more dogs on the grille, baby. It's party time. Invite the neighbors, honey.

It looks as if the federal prosecutors have either botched the case against him or didn't have enough of a case all along.

This case was about the insider-trading scheme run by SAC portfolio manager, Mathew Martoma.

Insider trading is always so very tough to prove. However, it gives lawyers on both sides something to do. And in a tough employment environment for jobs for lawyers, it could be viewed on win-win terms for the legal industry.

Enjoy watching Cubs baseball this weekend!

Steve.

Another day, another billionaire dodging taxes

Welcome to Puerto Rico, newly laundered billionaires!

Well, the signs or the brochures really don't read like that, of course.

But, this is what it looks like for hedge fund operator John "Dodger" Paulson.

Bloomberg reports that John Paulson "is exploring a move to Puerto Rico, where a new law would eliminate taxes on gains from the $9.5 billion he has invested in his own hedge funds, according to four people who have spoken to him about a possible relocation."

Suggestions from a billionaire: move!

Jim Rogers, co-founder of the Quantum Fund, speaking before the CFA Society of Atlanta on February 6, 2013:

“I am optimistic about states with natural resources. Georgia is rich in agriculture and I am much more optimistic about it than states like Massachusetts and New York. The world is changing away from finance to producers of real goods. Finance is going to be a very difficult place to be in the next 20 to 30 years. Finance is over.”

“Move to the country. Be a tractor dealer or fertilizer salesman. If that’s not for you, open restaurants where there are farms.”

David Tepper is bullish on 2013 and America!

David Tepper, who runs $12 billion hedge fund Appaloosa Management, was on Bloomberg TV today going all in on equities, America and 2013.


"This country is on the verge of an explosion of greatness. An explosion of greatness. [The] "main thing right now is to be long equities." --- David Tepper

Steven Cohen of SAC gets a Wells Letter

Steven Cohen of SAC gets a Wells Letter from the SEC.

Billionaire hedge fund manager shoots back saying the firm "acted appropriately."

Eddie Lampert jumps on the Netflix bandwagon

Now it is Eddie Lampert's turn to jump on Netflix for fun, action and profits.

Eddie, via RBS Partners, bought 704, 381 shares of Netflix (NASDAQ:NFLX) worth $38, 346,501.

Corporate Raider Carl Icahn has put Netflix in play with his nearly 10% stake in the company. Netflix implemented a “poison pill plan” against Mr. Icahn.

"There is a very good argument that, at the right premium, somebody should buy Netflix." -- Carl Icahn

We will watch, with some interest, how Eddie Lampert, Carl Icahn and Netflix CEO Reed Hastings battle it out.

Has Mark Cuban Hedged His Facebook Position?

Has Mark Cuban Hedged His Facebook Position?


There are five (correct) answers to this question. They are (in no particular order):

a. who knows?
b. he'd be stupid if he wasn't
c. Broadcast.com
d. Yep, he's gotta to be
e. Yes, his silence (no posts or tweets) on this means only one thing

First, let's take a look at Mark Cuban's current (disclosed) Facebook position---

(Long) 150,000 shares; average cost per share $32.49; total cost $4,873,500

Based on a 6/1/12 FB close at $27.72, Cuban looks like he is sitting on a net (paper) loss of $715,500.

Do we begin to worry and feel sorry for Mark Cuban and his Facebook trade? No, because we only can see his paper loss. No, because he already told us this is a trade, not a long term investment. No, because with an original FB position of nearly $5 million, he has a vested interest in monitoring trade. No, because Mark Cuban doesn't like to lose money. No, because Mark Cuban isn't stupid.

Back in 1995 Mark Cuban and partner created Broadcast.com, a multimedia company. Years later they sold the company to Yahoo! for $5.7 billion in 1999. But, Cuban then owned restricted Yahoo! stock that was locked up. Cuban was at risk owning (temporarily) illiquid Yahoo stock. Cuban was at substantial risk. Cuban didn't want to accept that risk. Mark Cuban wanted to transfer that risk to the options market. So, Cuban says he "hedged my stock with synthetic indexes, in case the market cratered in the six months before I could hedge my actual Yahoo shares. It cost me $20 million, but I protected what I had." (Fast Company, September 30, 2002).

In January 2000, Cuban bought the Dallas Mavericks, NBA franchise.

In May 2012, Cuban bought a little under $5 million of Facebook stock.

Mark Cuban is hedged.

Boaz Weinstein, the guy with Jamie Dimon's money

Who is Boaz Weinstein?

The financial world remains abuzz with talk about all things JP Morgan, Jamie Dimon and billions in trading losses.

Also getting more attention is one of the guys on the other side of the transaction. The profitable side. The very profitable side. The extremely profitable side.

That guy is Boaz Weinstein who runs the billion dollar hedge fund called Saba Capital Management in New York.

Again, so who is Boaz Weinstein? Well, he is certainly a guy with a sense of humor at least. This is indicated by the above chart he included in a presentation at a financial conference recently.

Boaz Weinstein is a skilled chess, poker and blackjack player. He was graduated from the University of Michigan.  He became Deutsche Bank’s youngest ever Managing Director. He started Saba Capital in 2009.

That is who Boaz Weinstein is.

Have a nice day Jamie Dimon.

Fortune Jumps on the Sears Bandwagon

Just like the Wall Street Journal this month, it is now Fortune-CNNMoney-TermSheet's turn to jump on the Sears bandwagon and honor the "turnaround" that is still in its infancy after oh these so many years.

Fortune says: "The turnaround at one of the nation's largest retailers is good news for Eddie Lampert and hedge funds in general."

Read more, Eddie Lampert groupies. Read more.


Fortune Article: "Fast" Eddie may end up saving Sears


Fortune, bullish on SHLD for a reason:

Jamie Dimon: Way too big to fail

Who is Jamie Dimon?

The answer is a simple one. Jamie Dimon is simply Way Too Big to Fail.

Jamie Dimon is currently chairman and CEO of JP Morgan.

Interestingly, Jamie is also on the board of the New York Federal Reserve Bank. A banking regulator and important part of U.S. monetary policy.

Jamie Dimon was a classmate of (now GE chairman and fellow crony capitalist) Jeffrey Immelt while studying for their MBA's at the Harvard Business School. Jeffrey Keith "Jeff" Skilling, former President of Enron and also a Harvard MBA, was not a classmate of Jamie Dimon while at Harvard. Jeff Skilling is currently serving a 24-year, four-month prison sentence at the Federal Correctional Institution in Englewood, CO.

This month, JP Morgan received worldwide global attention for its $2 billion financial market trading loss disclosure. If you have a problem with this trading loss as a shareholder, JP Morgan customer, or a U.S. taxpayer, please remember: Jamie Dimon is Way Too Big to Fail.

On December 31, 2005  Jamie Dimon was named CEO of JP Morgan Chase (NYSE: JPM). One year later, he was named chairman.

When Jamie Dimon began as CEO JP Morgan stock was selling for $39.69 per share. JPM closed trading on May 15, 2012 at $36.24. The 7-year total-Jamie-Dimon-JPM-return is down over $3 per share. When Jamie Dimon began as CEO, JP Morgan was providing shareholders with a 34 cent per share quarterly dividend. That dividend was cut to 5 cents per share in 2009 and is now up to 30 cents per share quarterly.

If you have a problem with this stock performance as a JPM shareholder, again, please do remember: Jamie Dimon is Way Too Big to Fail.

I told you homeboy ( can't touch this)
Yeah, that's how we living and you know (can't touch this)
Look at my eyes, man (You can't touch this)
Yo, let me bust the funky lyrics (can't touch this)

   MC Hammer - Can't Touch This

JPMorgan Chase: Billions in Trading Losses

JPMorgan Chase not hedging well at all

One of the world's largest banks, JP Morgan, has reported hedging strategy losses of well over $2 billion U.S.



JP Morgan CEO Jamie Dimon, and Obama Administration insider, said: "This puts egg on our face." 

How did this happen? Why did this happen? One analyst noted that JP Morgan tried to hedge its over-hedge positions. Leverage does as leverage does.

Raj Raj gets 11-year sentence in fraud case

Raj Rajaratnam sets a record for the longest prison term in U.S. history for insider trading. Raj Rajaratnam, the hedge fund billionaire at the center of one of the largest insider trading cases in history, was sentenced Thursday to 11 years in prison, according to the U.S. attorney’s office in Manhattan.

David Tepper out of BAC and WFC

David Tepper, billionaire hedge fund manager of Appaloosa Management LP; aka David "Balls to the Wall" Tepper; aka Mr. "Tepper School of Business" at Carnegie Mellon University, where he achieved his MBA has zeroed out his stock positions in Bank of America (BAC) and Wells Fargo (WFC) according to CNBC.

New York City tries to steal millions in "back taxes" from hedge fund manager

By LAURA SAUNDERS

What a difference four days can make.

Billionaire Julian Robertson won a $27 million tax case after he successfully argued that he wasn't a New York City resident for the year 2000 and didn't owe city taxes.

At issue was Mr. Robertson's whereabouts on four days during that leap year: April 15, July 23, July 31 and Nov. 16. The other 362 days were accounted for, with documentary proof of 183 days spent in the city and 179 spent outside. The New York State Department of Taxation and Finance argued that because he didn't have documentary proof for the four days, he was therefore a resident and owed city taxes of $26,792,341.



WSJ article

Well, here is another Wharton School alum being carted off by police. Why can't these guys stay out of trouble???

Yes, this is (former?) billionaire Raj Rajaratnam of Galleon Group, who allegedly is in big, big trouble. Our question is this: how fat is Raj??? 250, 300, 350, or 400 pounds??? He looks like he has eaten several Manhattan restaurants.

update: article

Peter Thiel stays bearish on the markets

Clarium Capital is a well known "global macro" hedge fund, run by Peter Thiel. They have a great long term record which means they should be listened to, despite their recent short term performance.

The following articles seem to explain what is going on:

WSJ: Pessimism Exacts a Price on the Skeptics

WSJ: PayPal Co-Founder's Fund Struggles

Peter Thiel Profile