Funds articles

Short-term rates must-know: Why the Fed is fighting deflation

Fed funds The below graph reflects the federal funds target rate, which is the interest rate that depositors, such as U.S. Banks, receive at the Federal Reserve Bank on their overnight cash deposits. This rate had reached 5.25% in June 2007, as the Federal Reserve Bank under Chairman Alan Greenspan had hoped to cool the

NorthCoast ETF Retirement Portfolios End February On A High Note

NorthCoast Asset Management saw its ETF retirement portfolios heat up in February, with all holdings ending the month higher. After an icy start to 2014, top holdings have caught fire. The S&P 500 pushed to record heights during the month and European stocks hit a six-year high. Patrick Jamin, chief investment officer for NorthCoast, noted

Stock Fund Inflow Hit 13th Straight Month In January

Investors stuffed a net $23.97 billion into stock funds in January, a month that saw the market tap a new high and pull back amid concerns about emerging-market debt and currencies. Stock funds in January extended their streak of inflow to 13 months, as revised data shifted December from a slight outflow to inflow of

Private Equity’s Top 10 Earned $1.7 Billion in 2013

This puts Jamie Dimon’s $20 million payday in perspective: The top 10 private equity executives took home a combined $1.7 billion in dividends in 2013, as a soaring market for stocks allowed their firms to sell holdings at huge profits. Leon Black, the chairman and chief executive officer of Apollo Global Management (APO), earned about

Berkshire Seen Reporting Record Profit as U.S. Rebounds

Berkshire Hathaway Inc. (BRK/A) will probably post record full-year profit showing how Chairman Warren Buffett’s five decades of acquisitions positioned his company to benefit from a rebounding U.S. economy.Net income was at least $18 billion in 2013, according to analysts at Nomura Holdings Inc. and Keefe Bruyette & Woods. That compares with $14.8 billion in

BlueCrest Internal Fund May Pose Pay Conflicts, Albourne Says

BlueCrest Capital Management LLP, Michael Platt’s $32 billion hedge-fund firm, has a potential conflict of interest over a fund that it runs for the benefit of its partners, according to a report by one of the world’s largest advisers to institutional investors. Albourne Partners Ltd., whose clients include pension plans, endowments and family offices, issued

Elliott Boosts Offer to Acquire Riverbed to $3.36 Billion

Activist investment firm Elliott Management Corp. boosted its offer to buy Riverbed Technology Inc. (RVBD) by 11 percent to $21 a share, or $3.36 billion, after the network-equipment maker rejected an earlier bid as too low. New York-based Elliott and its affiliates own about 10.5 percent of Riverbed, making it one of the company’s largest

Billionaire Paulson Said in Talks to Buy Puerto Rico Resort

Paulson & Co.,the hedge-fund firm founded by billionaire John Paulson, is in talks to buy a resort complex in Puerto Rico. Paulson & Co. is seeking to acquire La Concha Resort and the Condado Vanderbilt, neighboring beachfront hotels in the capital city of San Juan, according to two people with knowledge of the transaction. The

BofA Reaches Deal With Buffett on Preferred Stake

 Bank of America Corp. (BAC), the lender that turned to Warren Buffett in 2011 for a capital injection, reached a deal with the billionaire’s company to change terms so the investment is treated more favorably by regulators.The amendment would allow the bank to count preferred shares with a $2.9 billion carrying value as Tier 1 capital, the Charlotte, North Carolina-based lender said in a filing with the U.S. Securities and Exchange Commission yesterday. The deal with Buffett’s Berkshire Hathaway Inc. (BRK/A) must be approved by the bank’s shareholders in a May vote, according to the filing.The agreement will “benefit our Tier 1 capital and leverage ratios,” Bank of America said in the filing. “We do not expect any impact to our financial condition or results of operations as a result of this amendment.”Bank of America Chief Executive Officer Brian T. Moynihan has been selling assets to simplify the company and prepare for tighter regulation. U.S. and international watchdogs are pushing lenders to hold more capital to prevent a repeat of the bailouts in the financial crisis. Tier 1 capital is a measurement of a bank’s ability to absorb losses.The amendment would force Bank of America to wait at least five years from its approval to redeem the preferred stock. Under the 2011 deal, the bank was able to redeem the preferred stake at any time as long as it paid a 5 percent premium.Buffett’s WarrantsBerkshire gets 6 percent annual interest on the securities. Under the revised deal, Buffett agreed to give up a dividend provision that gave him the right to recover missed payments.Berkshire made the $5 billion investment in Bank of America in 2011 after the lender’s stock fell more than 45 percent amid losses on mortgages. In addition to the preferred stake, Buffett received warrants allowing his Omaha, Nebraska-based company to buy 700 million shares of Bank of America for $7.14 each. The stock closed at $16.34 yesterday in New York, giving Buffett a paper profit of about $6.4 billion on those contracts.Bank of America and Buffett negotiated the changes, which didn’t involve payments, in the fourth quarter, according to a person with knowledge of the matter. Buffett didn’t immediately respond to a request for comment sent to an assistant.

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