Tuesday, October 11, 2011
Defying Belief, Defying Gravity
(CBS News) If scaling a 1,600-foot rock face seems terrifying, imagine scaling it without ropes or a harness. That's what Alex Honnold recently attempted in Yosemite National Park, using nothing more than his hands and feet. "60 Minutes" cameras were strategically placed along the climb, capturing every harrowing move. Correspondent Lara Logan interviews the man now being hailed as the best climber alive.
Sunday, October 9, 2011
Many Hedge Funds Will Not Survive 2011
October 07, 2011
Where’s the hedging? You can’t blame disenchanted investors who drank the hedge fund Kool-Aid asking this question after seeing their funds down by double-digit rates through September, especially those who suffered through similar setbacks in 2008.
With data flowing in now, it is apparent that a large number of hedge funds are in the red this year and several dozen are down by double-digit rates. They include many well-known names that run billions of dollars. Experts say many of these funds could face sizable redemptions. After all, in the next 30 to 60 days, these requests must be submitted to most hedge funds for year-end.
Investors also think this woeful performance will lead to a shakeout just as many experts have been proclaiming the resurgence in the asset class. A number of funds will no doubt choose to shut down altogether by year-end, figuring they don’t want to work for free for a year or two before they get back to the high water mark.
In fact, Ken Griffin’s decision not to shut down Kensington and Wellington after they lost more than 50 percent in 2008 surprised many people in the hedge fund business.
So, who are the biggest losers so far this year?
Of course, the most visible big loser this year is John Paulson. For example, through September 27, Paulson Advantage Fund was down 6 percent for the month and more than 28 percent for the year, while Paulson Advantage Plus, which takes on additional leverage, is presumably down even more.
Paulson International Fund was down 5.38 percent for the month, although it was “only” off 9.47 percent for the year.
Through September 28, Templeton Emerging Market Fund, headed by legendary emerging markets manager Mark Mobius lost about 20 percent for the month, and after just three trading days in October was down 22.70 percent for the full year.
Meanwhile, Lee Ainslie’s Maverick fund lost nearly 8 percent in September alone, and is down nearly 17 percent for the year through September 30. “I don’t understand this,” says a hedge fund investor who does not have money with Maverick but has looked at it in the past. “Ainslie runs a tight ship. He has a lot of portfolio managers.” Ainslie is one among dozens of Tiger Cubs, former employees of Tiger Management founder Julian Robertson.
Paul Ruddock’s Lansdowne Capital is also struggling. Through September 30 his $8 billion Lansdowne UK Equity fund is down more than 15 percent while Lansdowne Global Financials Fund is off 19.13 percent. Ruddock co-founded London-based Lansdowne Partners in 1998. He worked at Goldman Sachs & Co. from 1980 to 1984 and at Schroder & Co. from 1984 to 1998.
Leon Cooperman’s Omega Fund also took a big beating in September, dropping 7.58 percent for the month alone and 12.36 percent for the year.
Bill Ackman’s Pershing Square dropped 5.70 percent in September and is off nearly 16 percent for the year.
Among lesser known funds, The Altis Fund was down more than 10 percent for the month and nearly 30 percent for the year. The firm, which had $1.48 billion under management at the end of May, was founded in 2001 with just $1.2 million in assets by Alex Brunwin, Natasha Reeve-Gray, Stephen Hedgecock and Zbigniew Hermaszewski.
The MLM Macro Peak Partners fund was down 6.68 percent in September, bringing its full-year loss to more than 30 percent. The $1.2 billion fund is managed by Mount Lucas Management, which at the beginning of the year ran $ 1.9 billion for institutions and high net worth individuals. The macro fund combines quantitative and discretionary trading techniques.
CRM Windridge fund, managed by Cramer Rosenthal McGlynn, was off 5.68 percent through September 27 and more than 28 percent for the year. It was also down 17.43 percent in 2010. Ouch!
The Lyxor/Island Drive Offshore Fund is down 10.16 percent this year after losing 25.65 percent and 29.32 percent in 2010 and 2009, respectively.
Meanwhile, Bloomberg reported that currency specialist Covepoint Capital Advisors, headed by Melissa Ko, lost an astounding 38 percent in September in its Covepoint Emerging Markets Macro fund, pushing it down roughly 25 percent for the year. The fund reportedly bet 84 percent of its assets in currencies, one-fifth of which was invested in Mexico.
With Time Running Short, Jobs Managed His Farewell
Over the last few months, a steady stream of visitors to Palo Alto, Calif., called an old friend’s home number and asked if he was well enough to entertain visitors, perhaps for the last time.
In February, Steven P. Jobs had learned that, after years of fighting cancer, his time was becoming shorter. He quietly told a few acquaintances, and they, in turn, whispered to others. And so a pilgrimage began.
The calls trickled in at first. Just a few, then dozens, and in recent weeks, a nearly endless stream of people who wanted a few moments to say goodbye, according to people close to Mr. Jobs. Most were intercepted by his wife, Laurene. She would apologetically explain that he was too tired to receive many visitors. In his final weeks, he became so weak that it was hard for him to walk up the stairs of his own home anymore, she confided to one caller.
Some asked if they might try again tomorrow.
Sorry, she replied. He had only so much energy for farewells. The man who valued his privacy almost as much as his ability to leave his mark on the world had decided whom he most needed to see before he left.
Mr. Jobs spent his final weeks — as he had spent most of his life — in tight control of his choices. He invited a close friend, the physician Dean Ornish, a preventive health advocate, to join him for sushi at one of his favorite restaurants, Jin Sho in Palo Alto. He said goodbye to longtime colleagues including the venture capitalist John Doerr, the Apple board member Bill Campbell and the Disney chief executive Robert A. Iger. He offered Apple’s executives advice on unveiling the iPhone 4S, which occurred on Tuesday. He spoke to his biographer, Walter Isaacson. He started a new drug regime, and told some friends that there was reason for hope.
But, mostly, he spent time with his wife and children — who will now oversee a fortune of at least $6.5 billion, and, in addition to their grief, take on responsibility for tending to the legacy of someone who was as much a symbol as a man.
“Steve made choices,” Dr. Ornish said. “I once asked him if he was glad that he had kids, and he said, ‘It’s 10,000 times better than anything I’ve ever done.’ ”
“But for Steve, it was all about living life on his own terms and not wasting a moment with things he didn’t think were important. He was aware that his time on earth was limited. He wanted control of what he did with the choices that were left.”
In his final months, Mr. Jobs’s home — a large and comfortable but relatively modest brick house in a residential neighborhood — was surrounded by security guards. His driveway’s gate was flanked by two black S.U.V.’s.
On Thursday, as online eulogies multiplied and the walls of Apple stores in Taiwan, New York, Shanghai and Frankfurt were papered with hand-drawn cards, the S.U.V.’s were removed and the sidewalk at his home became a garland of bouquets, candles and a pile of apples, each with one bite carefully removed.
“Everyone always wanted a piece of Steve,” said one acquaintance who, in Mr. Jobs’s final weeks, was rebuffed when he sought an opportunity to say goodbye. “He created all these layers to protect himself from the fan boys and other peoples’ expectations and the distractions that have destroyed so many other companies.
“But once you’re gone, you belong to the world.”
Mr. Jobs’s biographer, Mr. Isaacson, whose book will be published in two weeks, asked him why so private a man had consented to the questions of someone writing a book. “I wanted my kids to know me,” Mr. Jobs replied, Mr. Isaacson wrote Thursday in an essay on Time.com. “I wasn’t always there for them, and I wanted them to know why and to understand what I did.”
Because of that privacy, little is known yet of what Mr. Jobs’s heirs will do with his wealth. Unlike many prominent business people, he has never disclosed plans to give large amounts to charity. His shares in Disney, which Mr. Jobs acquired when the entertainment company purchased his animated film company, Pixar, are worth about $4.4 billion. That is double the $2.1 billion value of his shares in Apple, perhaps surprising given that he is best known for the computer company he founded.
Mr. Jobs’s emphasis on secrecy, say acquaintances, led him to shy away from large public donations. At one point, Mr. Jobs was asked by the Microsoft founder Bill Gates to give a majority of his wealth to philanthropy alongside a number of prominent executives like Mr. Gates and Warren E. Buffett. But Mr. Jobs declined, according to a person with direct knowledge of Mr. Jobs’s decision.
Now that Mr. Jobs is gone, many people expect that attention will focus on his wife, Laurene Powell Jobs, who has largely avoided the spotlight, but is expected to oversee Mr. Jobs’s fortune. A graduate of the University of Pennsylvania and the Stanford Graduate School of Business, Mrs. Powell Jobs worked in investment banking before founding a natural foods company. She then founded College Track, a program that pairs disadvantaged students with mentors who help them earn college degrees. That has led to some speculation in the philanthropic community that any large charitable contributions might go to education, though no one outside Mr. Jobs’s inner circle is thought to know of the plans.
Mr. Jobs himself never got a college degree. Despite leaving Reed College after six months, he was asked to give the 2005 commencement speech at Stanford.
In that address, delivered after Mr. Jobs was told he had cancer but before it was clear that it would ultimately claim his life, Mr. Jobs told his audience that “death is very likely the single best invention of life. It is life’s change agent.”
The benefit of death, he said, is you know not to waste life living someone else’s choices.
“Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition.”
In his final months, Mr. Jobs became even more dedicated to such sentiments. “Steve’s concerns these last few weeks were for people who depended on him: the people who worked for him at Apple and his four children and his wife,” said Mona Simpson, Mr. Jobs’s sister. “His tone was tenderly apologetic at the end. He felt terrible that he would have to leave us.”
As news of the seriousness of his illness became more widely known, Mr. Jobs was asked to attend farewell dinners and to accept various awards.
He turned down the offers. On the days that he was well enough to go to Apple’s offices, all he wanted afterward was to return home and have dinner with his family. When one acquaintance became too insistent on trying to send a gift to thank Mr. Jobs for his friendship, he was asked to stop calling. Mr. Jobs had other things to do before time ran out.
“He was very human,” Dr. Ornish said. “He was so much more of a real person than most people know. That’s what made him so great.”
Reporting was contributed by Julie Bosman, Quentin Hardy, Claire Cain Miller and Evelyn M. Rusli.
Jean-Paul Riopelle works on show starting October 13 at the Quartier des Spectacles
INFO from the press release:
"The Festival International de Jazz de Montréal and the Galerie Lounge TD of the Maison du Festival Rio Tinto Alcan are proud to present D’aile en ailes l’élan vital, an extraordinary exhibition of fifty works, many previously unseen, by internationally renowned Québécois painter Jean-Paul Riopelle, from October 13 to December 24, 2011.
An extraordinary man, a unique exhibition: more than fifty works, including twenty previously unseen!
This unique exhibition will assemble more than fifty works by Jean-Paul Riopelle: 27 prints, 3 sculptures in bronze, photos of the artist, a number of articles and objects from his daily painting routine and, above all, more than twenty previously unseen works on paper which Huguette Vachon, his companion, has painstakingly selected in order to share their beauty with all of us.
Jean‑Paul Riopelle (1923-2002)
Jean-Paul Riopelle is one of the few Canadian painters, sculptors and engravers to have carved out an enviable place on the international scene. A passionate man, intensely in love with freedom, he scoffed at conventions and taboos throughout his career. Fiercely independent, he preceded currents and trends, ceaselessly exploring new techniques and new materials, constantly seeking to renew his creative approach, allowing his pictorial language to evolve towards an utterly original aesthetic. Riopelle found his principal source of inspiration in nature, and it would remain his preferred subject throughout his career. For Riopelle, the important thing was never the subject itself, but the mystery it revealed, through which the artist could express himself. He had an inimitable vision of things, and his representation of the real remains remarkable and novel.
“There is no such thing as abstraction, nor representation.
There is only expression, and self-expression means placing yourself in front of things.”
- Jean‑Paul Riopelle
Born in Montreal in 1923, Riopelle studied at the École du meuble, with PaulÉmile Borduas as a teacher. A signatory and advocate of the Refus global manifesto, he settled in France in 1948, where he was privileged to be at the heart of the artistic and intellectual life of the avant-garde. In the ’50s, he and his work soared to triumph in Paris as well as in America. During his time in Paris and New York, Riopelle rubbed elbows with the greatest jazz legends of the era, including Bud Powell. This interest in the music led him to permit the Festival International de Jazz de Montréal to reproduce silkscreens of his piece, Jazz, in 1997. Then, during the 25th anniversary of the Festival, the late painter’s estate granted exclusive permission to reproduce 75 copies of the previously unreleased 1990 work Big Bang, Big Band, which Alain Simard had personally acquired in 1997, during a visit to the artist’s home on L’Isle-aux-Grues.
Today, the works of Jean-Paul Riopelle are included in major museum, private and public collections and showcased in the most important galleries the world over. His is an immense and diversified oeuvre that opened new artistic horizons, leaving its mark on the history of world art."
Opening hours:
Monday: closed
Tuesday: 11:30 a.m. to 6 p.m.
Wednesday to Saturday: 11:30 a.m. to 9 p.m.
Sunday: 11:30 a.m. to 5 p.m.
Hours extended until 9 p.m. during concert evenings in L’Astral
Jean-Paul Riopelle
D’aile en ailes l’élan vital
(On the Wings of the Life-force)
From October 13 to December 24, 2011
Galerie Lounge TD
Maison du Festival Rio Tinto Alcan
305 Ste. Catherine Street West, 2nd Floor - 514 288-8882
galerieloungetd.montrealjazzfest.com
galerieloungetd.montrealjazzfest.com
Saturday, October 8, 2011
Report: 'Secret Sins' of Koch Industries
Charles and David Koch, the secretive billionaire brothers behind the Koch Industries, are a huge financial force in the conservative political movement. According to one estimate, they've contributed more than $100 million to conservative political causes, and a foundation that they back has trained thousands of Tea Party activists.
But now reporters for Bloomberg Markets magazine have published an article about what the magazine calls Koch Industries "secret sins" -- including business deals with Iran -- that the reporters claim reflect the same hostility to regulation that powers the Koch brothers' politics.
David H. Koch, 71, and Charles Koch, 75, together own Koch Industries, a Wichita, Kansas-based company started by their father Fred. The privately-held, $100 billion-dollar-a-year company owns such subsidiaries as Georgia Pacific and the maker of Lycra and Stainmaster carpets, but is best-known for its oil and energy business. Koch owns thousands of miles of pipelines and refineries in several states.
In a recent documentary, David Koch can be seen addressing Tea Party leaders and espousing American values, saying, "The American dream of free enterprise, capitalism is alive and well."
But now questions are being raised about the American values of the source of the Koch brothers' wealth.
This week's edition of Bloomberg Markets reveals that one Koch Industries subsidiary was trading with Iran and that another subsidiary in France was paying bribes to get business in six different countries.
In one previously undisclosed document from a French labor court case, Koch Industries admits the payments are "violations of criminal law." A company spokesperson told ABC News that the letter relates only to the conduct of the employee fired in the bribery case and "does not discuss or concern United States law or the company's potential liability."
"It's a document right there in the court record, out of the lips of Koch Industries," said David Evans, one of the co-authors of the Bloomberg Markets article.
David Koch declined to speak when ABC News caught up with him outside his Park Avenue apartment in New York City and asked him to respond to the magazine's allegations.
In a statement posted online, Koch Industries accused Bloomberg Markets magazine of "substandard reporting" and said the company obeys the law.
"Koch Industries and its affiliated companies are committed to compliance," said the statement, "and Koch companies strive to live by their Guiding Principles, including most importantly Principles 1 and 2, which require that all business dealings are conducted lawfully, with integrity, and in compliance with all laws."
Koch Industries says it fired those responsible when it learned of the bribes in 2008, but as a private company it was able to keep all of that secret until this week's article.
"I think there are enough of these payments that I think any prosecutor would want to look further," said John Coffee, a professor at Columbia University Law School and director of the school's Center on Corporate Governance. "The only issue that I think Koch has by way of defense is showing that these payments were never authorized, encouraged or ratified by the parent company, but were only done by the foreign subsidiary."
The trading with Iran involved Koch subsidiaries in Germany and Italy providing key components for a huge state-owned petro-chemical plant, despite a U.S. ban on trade with Iran since 1995.
http://abcnews.go.com/Blotter/koch-industries-report-reveals-secret-sins/story?id=14676652
One order was placed on January 29, 2003, the day after President Bush told Congress in his State of the Union message that Iran continued to be an enemy of the U.S. that "represses its people, pursues weapons of mass destruction and supports terror."
Koch Industries says the trade was legal because it was done through a foreign subsidiary and no Americans were involved.
Said Asjylyn Loder, a co-author of the Bloomberg Markets article, "You're still dealing with a state that is considered by the U.S. State Department to be a sponsor of terrorism." Koch Industries says it finally stopped trading with Iran in 2006.
But now reporters for Bloomberg Markets magazine have published an article about what the magazine calls Koch Industries "secret sins" -- including business deals with Iran -- that the reporters claim reflect the same hostility to regulation that powers the Koch brothers' politics.
David H. Koch, 71, and Charles Koch, 75, together own Koch Industries, a Wichita, Kansas-based company started by their father Fred. The privately-held, $100 billion-dollar-a-year company owns such subsidiaries as Georgia Pacific and the maker of Lycra and Stainmaster carpets, but is best-known for its oil and energy business. Koch owns thousands of miles of pipelines and refineries in several states.
In a recent documentary, David Koch can be seen addressing Tea Party leaders and espousing American values, saying, "The American dream of free enterprise, capitalism is alive and well."
But now questions are being raised about the American values of the source of the Koch brothers' wealth.
In one previously undisclosed document from a French labor court case, Koch Industries admits the payments are "violations of criminal law." A company spokesperson told ABC News that the letter relates only to the conduct of the employee fired in the bribery case and "does not discuss or concern United States law or the company's potential liability."
"It's a document right there in the court record, out of the lips of Koch Industries," said David Evans, one of the co-authors of the Bloomberg Markets article.
David Koch declined to speak when ABC News caught up with him outside his Park Avenue apartment in New York City and asked him to respond to the magazine's allegations.
In a statement posted online, Koch Industries accused Bloomberg Markets magazine of "substandard reporting" and said the company obeys the law.
"Koch Industries and its affiliated companies are committed to compliance," said the statement, "and Koch companies strive to live by their Guiding Principles, including most importantly Principles 1 and 2, which require that all business dealings are conducted lawfully, with integrity, and in compliance with all laws."
Koch Industries says it fired those responsible when it learned of the bribes in 2008, but as a private company it was able to keep all of that secret until this week's article.
"I think there are enough of these payments that I think any prosecutor would want to look further," said John Coffee, a professor at Columbia University Law School and director of the school's Center on Corporate Governance. "The only issue that I think Koch has by way of defense is showing that these payments were never authorized, encouraged or ratified by the parent company, but were only done by the foreign subsidiary."
The trading with Iran involved Koch subsidiaries in Germany and Italy providing key components for a huge state-owned petro-chemical plant, despite a U.S. ban on trade with Iran since 1995.
http://abcnews.go.com/Blotter/koch-industries-report-reveals-secret-sins/story?id=14676652
One order was placed on January 29, 2003, the day after President Bush told Congress in his State of the Union message that Iran continued to be an enemy of the U.S. that "represses its people, pursues weapons of mass destruction and supports terror."
Said Asjylyn Loder, a co-author of the Bloomberg Markets article, "You're still dealing with a state that is considered by the U.S. State Department to be a sponsor of terrorism." Koch Industries says it finally stopped trading with Iran in 2006.
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