Category Archives: All

Tech Stocks Make a Comeback

Tech stocks were highly sought after entries of the early 2000s’ stock market. As companies lost capital and went out of business, investors were left with more questions than answers about what happened. Now, investors are returning to the internet for companies with brighter outlooks and a positive strategy toward their policies. These popular social media destinations show an influence that extends well beyond those of their predecessors.

 

Facebook

 

Facebook initially opened with a strong surge of almost $50, but a variety of problems caused it to quickly fall. Nasdaq halting trading was the most alarming of these issues. None of their issues were related to the stock itself. This glitch was short-lived, and the social media company began to see growing numbers for their stock once a base was established. It is now one of the most popular tech stocks for young investors as well as seasoned veterans looking for new opportunities in the market. Current prices are well above those it began with in 2012. Shares will often go for at least $20 to $30 above the original price and the value is only continuing upwards. Founder Mark Zuckerberg created the company in 2004. He soon went on to steer the company towards billions of dollars in revenue. His title of Chairman and CEO ensures his vision for the website continues as the brand extends to other areas.

 

Apple

 

Apple has always been an important stock for investors. With significant developments such as the iPad and iTunes, their impact on the markets became even more pronounced. Recent share prices have been valued at hundreds of dollars. This may grow even more as possible new entries occur for various consumer goods which will change the lives of its users. Founder Steve Jobs left a lasting legacy that established the company as one of the top businesses ever created. He was the face of the company and led all product launches until his death in 2011. His death was one of the only times a drop in stock prices occurred. This was only temporary and the prices leveled out after Tim Cook became CEO.

 

Social media has become an important factor among all internet sites. Its influence extends into other areas that go beyond traditional computers. This growing element makes these stocks a fascinating investment. Their growing prices could mean greater gains for investors willing to give this sector another chance.

Advertisements
Tagged ,

Retirement: Are You Saving Too Much?

Until just recently, articles about retirement planning for Americans usually focused on lack of savings. That hasn’t been the case in the last few weeks. Retirees and older workers will be happy to know that a new report on retirement finances shows that retirement savings needs have been over-estimated. Using information gathered from retiree habits and common expenses, inflation rates, actuarial tables, and more, Morningstar Investment Management is re-setting the way financial planners and others look at retirement.

Assumptions on Retirement

In the past, when creating a retirement plan, the two most important benchmarks for determining a retirement savings goal have been cost-of-living and inflation. A long-held rule in financial planning has been that an individual will need approximately 75 percent of their pre-retirement earnings annually to maintain their lifestyle. In other words if that person’s final annual salary was $60,000, it has been assumed that they will need approximately $45,000 per year in retirement to enjoy the same sort of lifestyle they did while working. According to JP Morgan Asset Management, under the leadership of CEO Mary Callahan Erdoes, a retiree may need as little as 54 percent of their pre-retirement income, although that is truly the bottom of the range.

The financial planning industry has also assumed that retirees will be affected by annual inflation rates of approximately 3 percent and have built those increases into the pre-retirement savings goals. The report from Morningstar Investment Management, led by President Thomas Idzorek, has shown that for most retirees, this number is too high.

Corrections

Americans spend the most money in their 40s and 50s. Parents of teenagers (for example) probably can’t remember where their salaries went before they started paying for cars and college. It may be difficult for a person at age 50 or 55 to imagine being able to exist on less income or that their personal expenses will lower in the future, but they will.

Here are some reasons you probably will not need as much money when retired:

•           The 10 percent of your salary saved annually for retirement equals 10 percent less spending.

•           The amount you paid annually into Social Security and Medicare as an employee can be subtracted from the amount of money that you “need” in retirement.

•           Your home mortgage should be (nearly) paid off by retirement – no small amount of savings!

•           The kids will be out of college when you retire. Subtract that from the “amount needed in retirement” column.

•           In retirement you may be able to cut down on the number of cars you own, car insurance and vehicle maintenance costs.

Inflation also won’t be nearly as much of a problem for retirees as the financial planners have assumed in the past, according to David Blanchett, head of retirement research at Morningstar Investment Management. Although most retirement advisers had been planning for 3 percent inflation annually, Blanchett found that over time, inflation has actually been only about 1 percent average, a significant difference in total dollars over 20 or 30 years.

Each individual faces different issues for retirement. There is no retirement savings magic wand. However, this new information on retirement savings is definitely a boost to savings efforts.

Wealthiest Americans Show Economic Confidence with Large Donations in 2013

In a report released December 31, 2013 from the Washington, D.C.-based Chronicle of Philanthropy, America’s wealthiest families made charitable gifts on a much larger scale in 2013 than they did in 2012. “It was a much stronger year for donations among the affluent,” said Stacy Palmer, editor of the Chronicle. This improvement in philanthropic giving was triggered by the sharply climbing stock market as well as renewed confidence in the economy.

The largest donation in 2013 came from Mark Zuckerberg and Priscilla Chan. The Facebook Inc. Chief Executive and his wife, a physician, donated 18 million Facebook shares to the Silicon Valley Community Foundation. Far and away the largest charitable donation in 2013, their gift is valued at more than $992 million.

Silicon Valley Community Foundation

In contrast, an identical donation from the Zuckerberg’s of Facebook stock in 2012 was valued at about half as much at just under $500 million and only landed them in the second spot on the largest donations list. As the market rose in 2013, Facebook stock did very well. Mr. Zuckerberg’s personal net worth also doubled since December 2012 from $12.2 billion to approximately $25 billion today.

The Chronicle of Philanthropy further reported that the number of gifts of $1 million or more climbed by 57 percent in 2013 – $6.1 billion total in 2012 to $9.6 billion in 2013. Plus, donors interested in making the 2013 top ten list had to give a much bigger gift than in 2012. The threshold for the top ten dropped as low as $60 million in 2012. However, in order to make the list for 2013 a gift of $100 million was needed – and there are 6 names competing for that slot.

Number Two on the list of charitable gifts in 2013 are Nike CEO Phil Knight and his wife Penelope. The Knights pledged $500 million to support cancer research to the Oregon Health & Science University Foundation with the expectation that the university will match the gift amount within the next two years.

Michael Bloomberg, former New York City Mayor, is three on the list. The former mayor pledged $350 million to Johns Hopkins University for financial aid to undergraduate students and to assist with promotion of cross-disciplinary studies.

The remaining names on the biggest donors list give us even more evidence that the economy is improving, especially in relation to the housing market. One third of the names on the list are heirs to real estate fortunes or real estate developers themselves.

Tagged ,

Foreign Banks Take On Increased US Debt

After last week’s auctions, in which the US government sold off $66 billion in longer dated securities, it has been revealed that overseas central banks have taken a larger stake in US Treasury debt.

Information released by the Federal Reserve this week, shows that overseas central banks now hold $2.823 trillion worth of US debt, up $11.89 billion after the last auction. This increase marks the single largest weekly jump since a $22.41 billion leap in the week ending the 20th June, which coincided with last months auction of similar three-year, 10-year and 30-year maturities.

The increased investment in ‘safe-haven’ debt comes off the back of discouraging news concerning the state of the US economy, as investors steer clear of risky investments outside of Treasuries. News of an increase in weekly jobless claims, a poor showing in manufacturing industries and a downward turn in house sales, all suggest a weakening of growth in the economy in the months ahead.

The figures reflect the general interest in US Treasury debt from overseas banks, particularly those in Asia, who have been increasingly large buyers in recent years.

While China and Japan are the two biggest holders of Treasuries, overseas banks now own a quarter of all marketable Treasuries. The demand for products that deal in government debt or, more specifically, government debt that is perceived as a safe investment, has been incredibly large in recent months.

The movements in the Japanese yen has been of interest to many macro hedge fund managers such as Tudor Funds or Moore Capital Management, who make investments based on whether they calculate markets will improve over the coming months.

The increased investment in ‘safe-haven’ debt comes off the back of discouraging news concerning the state of the US economy, as investors steer clear of risky investments outside of Treasuries. News of an increase in weekly jobless claims, a poor showing in manufacturing industries and a downward turn in house sales, all suggest a weakening of growth in the economy in the months ahead.

However, Treasury sales look fantastic compare to the recent auctions of Spanish public debt, with the government struggling to interest investors and its 10 year yield getting ever nearer to 7%. In contrast, later this afternoon, the Treasury Department is hoping to sell $15 billion at an incredibly low borrowing cost. This will see the government selling 10-year Treasury Inflation Protected Securities, which have recently yielded around -0.62% in four other similar auctions.

These low yields are a sign that investors fear the worst on global markets and may reflect deep concern over further fallout from the eurozone crisis. With further eurozone bailouts expected in the near future, many investors are taking a ‘wait and see’ approach.

The trend for such government bonds has been seen across a variety of economies, in particular the sale of German Bunds. For the first time ever, Berlin sold two year Bunds at negative yields earlier in the week. However, many analysts feel that the US Treasury market in particular is showing signs of stumbling and slowing. William O’Donnell, head of U.S. government bond strategy at RBS Securities argues that in recent days there has been observed in the market a “better balance of buyers and sellers, suggesting that the rally in Treasuries is running on tired legs.”[1]

The Federal Reserve’s report also detailed a drop in foreign banks’ holdings of securities issued or guaranteed by the biggest U.S. mortgage financing agencies, including Fannie Mae and Freddie Mac. The drop was reported at $5.52 billion, leaving overall holdings level at around $693 billion.


Tagged ,

Battle continues between AUS and Telus

A U.S. hedge fund has escalated its battle with Telus Corp by asking a court to force the Canadian telecom to reveal h o w a lot of support shareholders had given to the company’s failed commit to unify its 2 categories of stock.

Mason Capital Management LLC , its largest shareholder, said it may base a call on whether or not to extend or decrease its nearly twenty p.c stake within the Vancouver-based company on knowing what quantity support the set up drew when shareholders voted in could.

The plan, that Telus withdrew when it became clear that Mason would block it, would have given a non-voting category of shares identical standing because the a lot of valuable voting shares.

As a short-seller of the non-voting stock, Mason probably created cash by blocking the deal, that knocked the category lower. The hedge fund c ould look to profit once more if Telus revives the live because it says it’s going to do.

While it had been not immediately clear what Mason’s end-game was, its c ontinued p resence on the shareholder list may stymie Telus’ efforts to re introduce the set up.

Mason has employed Blackstone cluster LP to hunt out a buyer for the stake, a supply told Reuters in June.

OBSCURED data

In the petition to the Supreme Court of British Columbia d ated could ten, Mason’s lawyers asked for unredacted copies of the proxies submitted by holders of the voting stock.

Mason said Telus had provided copies however data associated with the proposal had been obscured, creating it not possible to work out how investors had voted.

Mason had bought nineteen p.c of Telus’ voting shares earlier than the planned vote. The fund had borrowed a far larger range of non-voting shares and sure benefited as their price fell when Telus withdrew the vote.

At the time, Telus said that excluding Mason’s opposing vote, the proposal would are approved by each categories of shareholders with a complete of ninety two.4 p.c in favor.

The filing showed that Mason has since slightly added to its position, that is currently at nearly twenty p.c. It failed to say what percentage borrowed non-voting shares it still held.

“EMPTY VOTING STRATEGY”

Telus said it opposed the filing.

“This is simply another tactic by Mason to undertake to advance their empty voting strategy within the interests of their own short-term profits at the expense of our alternative shareholders,” spokesman Shawn Hall said in an exceedingly statement.

Telus place its dual-share structure in place to adjust to a law limiting foreign management of Canadian telecom firms at a time when U.S.-based Verizon Communications Inc was a serious investor.

The law limits foreign direct possession in an exceedingly major carrier to twenty p.c. It additionally bars foreigners from owning quite a one-third interest within the carrier’s parent company.

The Canadian government recently passed legislation that allows a far off buyer to regulate a telecom company with but a ten p.c market share, a amendment that doesn’t apply to Telus.

If Telus is shown to own breached the foreign possession limits it may endanger its bids on valuable wireless spectrum in an auction due next year, Laurentian Bank Securities‘ Ron Mayers told BNN tv.

REGULATORY NEWS

Hedge funds lagging

Before they found hedge funds, pension funds and endowments usually held portfolios with sixty p.c in equities and forty p.c in bonds. several would be more contented if that they had stuck with the recent formula.

Hedge funds have trailed each the quality & Poor’s five hundred Index and a Vanguard index fund with identical 60/40 combine over the past 5 years, in line with information compiled by Bloomberg. The balanced fund beat the most Bloomberg hedge-fund index in six of the last seven calendar years, in line with information compiled by Bloomberg.

“People hear regarding the top-performing hedge funds and that they assume those results hold true for the full business,” George Sauter, chief investment officer for Vanguard cluster Inc., said in an exceedingly phonephone interview. “It seems that on average hedge funds are regarding average.”

Hedge funds are lagging behind when amassing a record $2.1 trillion in international assets from investors attracted by the returns of high managers like Paul Singer’s Elliott Management Corp. and Seth Klarman’s Baupost cluster LLC. The industry’s underperformance has contributed to an estimated $4 trillion in unfunded liabilities at U.S. pensions and prompted investors like the California Public Employees’ Retirement System to question whether or not each manager is definitely worth the customary fees of two p.c of assets and twenty p.c of profits.

‘Fewer Opportunities’
While there’s no proof that hedge funds are falling out of favor, their scale is creating it tougher for the hedge- fund business as an entire to provide higher results than different asset categories, said Simon Lack, a former govt at New York- primarily based JPMorgan Chase & Co. (JPM) (JPM) and author of the 2012 book “The Hedge Fund Mirage” (Wiley, 187 pages, $34.95).

“You have more cash chasing fewer opportunities,” Lack said in an exceedingly phonephone interview.

The main Bloomberg hedge fund index, that is weighted by market capitalization and tracks two,697 funds, fell 2.2 p.c a year within the 5 years ended June thirty. The Vanguard Balanced Index Fund (VBINX) (VBINX), that features a 60/40 split of equities and bonds, gained 3.5 p.c annually and also the S&P five00 Index gained zero.2 p.c a year.

The Vanguard fund additionally beat the HFRX international Hedge Fund Index, a live of hedge fund performance with a extended history, per annum since 2003.

“People aren’t watching returns for the past few years and extrapolating,” said Don Steinbrugge, managing partner of Agecroft Partners LLC, a Richmond, Virginia-based firm that advises hedge funds and investors.

Protecting Capital
Investors still expect hedge funds to outperform within the long-term as low bond yields and a slow-growing international economy limit the gains from stocks and bonds, Steinbrugge said in an exceedingly phonephone interview. Hedge funds still build sense for investors as a result of over time they need boosted returns and guarded investors in troublesome markets, he said.

From the top of 2000 through 2002, when the S&P five hundred Index fell seventeen p.c annualized and also the Vanguard Balanced Index Fund lost six.3 percent, hedge funds came back six.7 p.c annually, in line with information from Hedge Fund analysis Inc.

Hedge funds additionally beat the balanced fund in 2008, the second quarter of 2010 and also the third quarter of 2011, periods when stocks tumbled, information compiled by Bloomberg show. Hedge funds lost nineteen p.c in 2008 compared with a decline of thirty seven p.c for the S&P five hundred Index and twenty two p.c for the balanced fund.

‘Really Worked’
“In 2008 hedge funds very worked,” Goran Hagegard, managing director at Greenwich Associates, a monetary consulting firm in Stamford, Connecticut, said in an exceedingly phonephone interview.

An April study commissioned by the industry’s trade cluster found that hedge funds outperformed a mixture of stocks and bonds from 1994 to 2011. The HFRI Fund Weighted Composite Index came back nine p.c a year over that amount compared with seven.4 p.c a year for the balanced fund.

Hedge funds give investors “with diversification edges even throughout the foremost troublesome macroeconomic environments,” in line with the report, that was done by the Centre for Hedge Fund analysis at Imperial school in London for the choice Investment Management Association, the trade cluster, and KMPG International, an accounting firm.

The study’s results were primarily based on a hedge-fund index that offers equal weight to funds no matter size, as a result of investors allocate cash to funds of various sizes, said Robert Kosowski, one among the study’s authors, in an interview.

Asset-weighted indexes higher replicate the particular returns achieved by investors, Lack and Steinbrugge said. Since 1998, HFR’s asset-weighted index trails the performance of its equal- weighted index by regarding one.6 proportion points a year.

DellaCamera Jr’s I Serve

Ralph DellaCamera Jr. has been known as a vulture investor who understands a way to use a crisis to show a profit, however one thing happened on the thanks to the feast on the carcass of the housing market that has this veteran cash manager and Stamford resident moving out of the hedge fund business to specialize in mortgage lending.
“We are within the method of closing down the hedge fund,” said DellaCamera, who has worked on Wall Street since the Seventies. “It’s largely my cash.”
Part of this new specialize in the mortgage market includes moving his iServe Residential Lending mortgage banking operation’s East Coast headquarters to DellaCamera’s home town, Stamford.

The company announced on it’ll relocate from Rye Brook, N.Y., in August, usurping ten,000 sq. feet at 1010 Washington Boulevard, bringing its occupancy up to sixty p.c, in step with Larry Kwiat, SL Green’s manager for the property.
There will be fifty workers moving to Stamford, in step with iServe. the corporate will its own underwriting and has employed experienced mortgage lenders. it’s nineteen offices across the country, with its West Coast headquarters in San Diego.
“iServe’s call to relocate their offices to Stamford is more proof of our city’s continued economic growth and business friendly surroundings,” said Michael Pavia, Stamford’s mayor in an exceedingly press unleash. “I am happy that our residents can currently have the chance to learn from iServe’s monetary services and valuable experience.”
The firm is already giving loans in Connecticut and features a potential loan portfolio of $15 million within the state.
“It’s undoubtedly a lot of rewarding,” DellaCamera, chairman of iServe’s parent company, National Asset Direct, said, of issuing home loans. “It’s the yank dream to have your house. within the hedge fund business, you are continually requesting more cash. within the mortgage business, you are handing out cash.”
This move into originating loans grew out of the housing collapse, that DellaCamera saw as a shopping for chance.
In 2006, the hedge fund DellaCamera Capital Management, primarily based in ny, launched NAD, to shop for distressed mortgages at pennies on the dollar and then provide borrowers reduced rates on their mortgages, serving to to stay them in their homes.
The premise behind this sort of investment is to form a performing loan out of a non-performer and then sell it to the secondary market. It does not continually compute for the house owner.
A 2008 Bloomberg News story profiled DellaCamera’s entry into this market with the story of a California cupboard maker who received a changed loan from DellaCamera’s business. in step with Sonoma County records, that man lost his home this year.
NAD conjointly buys performing loan portfolios and DellaCamera said it conjointly sells bank-owned properties.
It was conjointly in 2008 that NAD acquired Arizona-based United Residential Lending and rebranded the operation using the name of United’s subsidiary iServe.
DellaCamera, who created an outsized donation to his alma mater, the University of latest Haven, to assist restart the soccer program, said Stamford is sensible for iServe as a result of it’s growing as a metropolitan center.
“Stamford is on fireplace,” he said, listing the quantity of development comes below means, as well as Chelsea Piers. He conjointly cited the landing of NBC Sports and also the presence of major monetary companies, still as AQR Capital in Greenwich and Bridgewater Associates in Westport, who are continually wanting to rent talent.


Stamford is an inexpensive different to ny town, where rents for one bedroom apartment in an exceedingly sensible are will high $4,000 a month, DellaCamera said. In Stamford, a young skilled will land an apartment for $2,600, he said.
But that rental value is additionally a reason why he is bullish on home sales for the world.
A $372,000 house in Stamford, with twenty p.c down, will mean a monthly mortgage payment of concerning $1,333, he said.
Ernie Craumer, a Greenwich resident who heads iServe’s East Coast operation, said monetary business professionals, firefighters, academics and policemen frame the majority of these applying for loans within the space.
“We do lots of first-time home buyer loans in Bridgeport – renovation loans,” he said.