Friday, June 22, 2007

Bear Trouble and Black Stone

Bear Stearns has to pony up to make one of its hedge funds hole and the market takes a tumble. To make matter worse there seems to be some confusion as to weather the fund would be forced to sell some assets or Bear would step up with cash .The fund had some significant loses in the sub prime area but at this point I don’t think it is going to spread .

Black Stone Group followed the age old principal on Wall Street to cash out before you get found out. Looks to me more like the beginning of the end for private equity funds than the beginning of something big. Many financial stocks have preformed poorly this year yet the hype of these deals knows no bounds, it is important to remember Wall Street makes money by selling you things and the amount of hype is usually in direct inverse proportion to the value of the holdings. Yes its true the good deals you almost never hear anything about until it’s to late.

1 comment:

Rodrigo said...

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