Apple Selloff Prompts Debate Over Tax Impact Versus Fundamentals (WSJ)
Apple shar Apple Inc. (NASDAQ:AAPL) -0.65%es returned to their downward December trajectory Monday, rekindling the debate over whether the stock’s sharp selloff owes to end-of-year profit-taking or more serious concerns about its long-term profitability. The answer is key to determining whether the world’s most valuable publicly traded company can recover much of the $167 billion in market value that it has lost in less than three months. …“If you look at the top holdings by leading hedge funds, Apple is at the top or near the top of most lists,” he said. “As 2012 closes, it’s not surprising to see a lot of the fast money crowd getting out to lock in gains.”
Poland Keeps Options Open for Blue-Chip Portfolio (WSJ)
Poland’s Treasury Ministry has developed a bit of a reputation for timing the market with its share sales through the Warsaw Stock Exchange, much like a good hedge fund does, so it’s unlikely to show its cards about planned accelerated book building transactions of blue-chip shares in its portfolio. But Warsaw-based investment bankers and stock brokers say it wouldn’t be outside the realm of possibility for the Treasury to push through one last deal by the end of the year or in early 2013, most likely involving shares in PKO Bank Polski PKO.WA +0.85%, insurer PZU, gas firmPGNiG PGN.WA +0.43% or oil refiner Grupa Lotos LTS.WA 0.00%.
SEC Charges Eight Mutual Fund Directors for Failure to Properly Oversee Asset Valuation (SEC)
The Securities and Exchange Commission today announced charges against eight former members of the boards of directors overseeing five Memphis, Tenn.-based mutual funds for violating their asset pricing responsibilities under the federal securities laws. The funds, which were invested in some securities backed by subprime mortgages, fraudulently overstated the value of their securities as the housing market was on the brink of financial crisis in 2007. The SEC and other regulators previously charged the funds’ managers with fraud, and the firms later agreed to pay $200 million to settle the charges.
SS&C Appoints New General Counsel (Finalternatives)
Hedge fund administrator SS&C Technologies has a new top lawyer. The Windsor, Conn.-based firm, which also provides financial-services software, named Paul Igoe its general counsel. Igoe succeeds outgoing general counsel Stephen Whitman on Jan. 7. “Paul’s proven track record in merger and acquisitions will add valuable intellectual wealth to our growing team. I am delighted to appoint him to this critical role at SS&C,” SS&C CEO Bill Stone said. “We also wish Steve Whitman all the best as he enters retirement.”
Chart of the Day: Hedgies fear bond bubble (eFinancialNews)
Hedge fund managers think that the next bubble is in the the credit markets, according to a new report, mirroring recent warnings from asset managers that liquidity in the European corporate bond market is drying up. A third of managers said that the next bubble is in credit, making it the largest concern (see chart), according to a report published yesterday from US hedge fund advisory firm Aksia, which collected responses from 168 managers representing about $900bn in assets. Other concerns were developed market rates/US treasuries, 26%, and the Asia/China region, 6%.
Who’s been naughty in the fund industry? (MarketWatch)
In the best of years — and 2012 will go down as a pretty good one for the mutual fund industry — most investors are willing to overlook misbehavior and overt bumbling so long as it doesn’t directly show up in their account statement. They shouldn’t be so nice to the naughty. With that in mind, I bring you the 17th annual Lump of Coal Awards, my two-part holiday tradition of easing Santa’s burden by singling out the bad boys and girls of the fund industry — those who deserve nothing more than a lousy lump of lignite in their Christmas stockings this year.
