Marijuana grower Tilray soars more than 20% after Peter Thiel-backed fund says it won’t sell

Tilray popped 24 percent Friday after its largest shareholder, a private equity fund backed by Peter Thiel, said it will not sell any of its remaining stake following the expiration of the marijuana grower’s IPO lockup period next week. “Given this, we do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019.” This eased concerns of shareholders in the volatile stock and spurred short sellers betting against Privateer to close their pos


Tilray popped 24 percent Friday after its largest shareholder, a private equity fund backed by Peter Thiel, said it will not sell any of its remaining stake following the expiration of the marijuana grower’s IPO lockup period next week. “Given this, we do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019.” This eased concerns of shareholders in the volatile stock and spurred short sellers betting against Privateer to close their pos
Marijuana grower Tilray soars more than 20% after Peter Thiel-backed fund says it won’t sell Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, grower, shares, tilray, thielbacked, prevent, weekprivateer, privateer, sell, soars, peter, marijuana, short, period, wall, 20, lockup, fund, wont


Marijuana grower Tilray soars more than 20% after Peter Thiel-backed fund says it won't sell

Tilray popped 24 percent Friday after its largest shareholder, a private equity fund backed by Peter Thiel, said it will not sell any of its remaining stake following the expiration of the marijuana grower’s IPO lockup period next week.

“Privateer Holdings strongly believes in Tilray’s long-term global growth strategy and pioneering role in shaping the future of the legal cannabis industry,” said Michael Blue, a managing partner at Privateer, which owns about 80 percent of Tilray. “Given this, we do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019.”

This eased concerns of shareholders in the volatile stock and spurred short sellers betting against Privateer to close their positions to prevent further losses, a phenomenon known on Wall Street as a short squeeze.

Tilray shares are up nearly 500 percent since their initial public offering on the Nasdaq in July. Such lockup periods are designed to prevent company insiders — including employees, their friends and family and venture capitalists — from selling their shares for a set period of time, according to the Securities and Exchange Commission.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: thomas franck, adam jeffery
Keywords: news, cnbc, companies, grower, shares, tilray, thielbacked, prevent, weekprivateer, privateer, sell, soars, peter, marijuana, short, period, wall, 20, lockup, fund, wont


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Trump could take billions from disaster areas to fund wall

The plan could be implemented if Trump declares a national emergency in order to build the wall and would use more money and build more miles than the administration has requested from Congress. Senior Defense Department officials discussed the proposal with Trump during his Thursday flight to the southern border, according to officials familiar with the briefing. Trump was informed that the Army Corps could build 315 miles of border wall in about 18 months, according to officials familiar with


The plan could be implemented if Trump declares a national emergency in order to build the wall and would use more money and build more miles than the administration has requested from Congress. Senior Defense Department officials discussed the proposal with Trump during his Thursday flight to the southern border, according to officials familiar with the briefing. Trump was informed that the Army Corps could build 315 miles of border wall in about 18 months, according to officials familiar with
Trump could take billions from disaster areas to fund wall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: courtney kube, julia ainsley, kevin lemarque
Keywords: news, cnbc, companies, billions, corps, build, fund, disaster, areas, officials, projects, border, money, wall, trump, president, familiar


Trump could take billions from disaster areas to fund wall

President Donald Trump has been briefed on a plan that would use the Army Corps of Engineers and a portion of $13.9 billion of Army Corps funding to build 315 miles of barrier along the U.S.-Mexico border, according to three U.S. officials familiar with the briefing.

The money was set aside to fund projects all over the country including storm-damaged areas of Puerto Rico through fiscal year 2020, but the checks have not been written yet and, under an emergency declaration, the president could take the money from these civil works projects and use it to build the border wall, said officials familiar with the briefing and two congressional sources.

The plan could be implemented if Trump declares a national emergency in order to build the wall and would use more money and build more miles than the administration has requested from Congress. The president had requested $5.7 billion for a wall stretching 234 miles.

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Under the proposal, the officials said, Trump could dip into the $2.4 billion allocated to projects in California, including flood prevention and protection projects along the Yuba River Basin and the Folsom Dam, as well as the $2.5 billion set aside for reconstruction projects in Puerto Rico, which is still recovering from Hurricane Maria.

Senior Defense Department officials discussed the proposal with Trump during his Thursday flight to the southern border, according to officials familiar with the briefing.

Trump was informed that the Army Corps could build 315 miles of border wall in about 18 months, according to officials familiar with the planning. The barrier would be a 30-foot bollard-style wall with a feature designed to prevent climbing, the officials said.

The Corps would focus first on the heavily trafficked border areas along the Rio Grande Valley in Texas, in San Diego and El Centro in California, as well as Yuma, Arizona.

The White House did not immediately return a request for comment.

A source on Capitol Hill said if the president moves to pull money from Corps of Engineers civil works projects, Democrats in Congress are likely to submit legislation to block the money from being reallocated.

Asked about the proposal, a Democratic staffer warned that taking money from civil works projects in the U.S. will put American lives at risk.

“Hundreds of thousands of people will be at risk if there is a strong or wet winter in these flood areas and the protection projects haven’t been completed,” the staffer said.

Rep. Nydia Velázquez, D-N.Y., said the Democrats would fight “with every ounce of energy we have” to stop the president from using Army Corps funds to build a southern border wall.

“It would be beyond appalling for the president to take money from places like Puerto Rico that have suffered enormous catastrophes, costing thousands of American citizens lives, in order to pay for Donald Trump’s foolish, offensive and hateful wall,” Velázquez said. “Siphoning funding from real disasters to pay for a crisis manufactured by the president is wholly unacceptable and the American people won’t fall for it.”


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: courtney kube, julia ainsley, kevin lemarque
Keywords: news, cnbc, companies, billions, corps, build, fund, disaster, areas, officials, projects, border, money, wall, trump, president, familiar


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If you’re worried about stocks, invest in gold here, Jim Cramer says

But in Cramer’s opinion, buying actual gold in the form of bars or coins isn’t the best way to get exposure. “Unless you can afford to buy actual gold bars and store them in a depository bank, I don’t recommend owning the actual metal,” he said on “Mad Money.” Instead, Cramer recommended getting direct exposure through the SPDR Gold Shares Fund, his favorite gold-based exchange-traded fund, a gold-mining ETF, or the stock of a high-quality gold producer like Barrick Gold. The SPDR Gold Shares Fu


But in Cramer’s opinion, buying actual gold in the form of bars or coins isn’t the best way to get exposure. “Unless you can afford to buy actual gold bars and store them in a depository bank, I don’t recommend owning the actual metal,” he said on “Mad Money.” Instead, Cramer recommended getting direct exposure through the SPDR Gold Shares Fund, his favorite gold-based exchange-traded fund, a gold-mining ETF, or the stock of a high-quality gold producer like Barrick Gold. The SPDR Gold Shares Fu
If you’re worried about stocks, invest in gold here, Jim Cramer says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, stocks, invest, goldmining, actual, buy, portfolio, worried, fund, youre, etfs, gold, barrick, cramer, jim


If you're worried about stocks, invest in gold here, Jim Cramer says

Investors concerned about the Federal Reserve’s interest rate policy and the U.S.-China trade dispute should take a stake in gold here, CNBC’s Jim Cramer said Friday as stocks slid for the first time in six days.

“If you’re looking for an insurance policy against volatility and economic uncertainty, gold is a great way to go,” he told investors. “While I like the stock market here, as you know, now that the Fed has decided to be more patient, the whole point of diversification is to be prepared in case something goes wrong … and your thesis doesn’t pan out.”

The precious metal traded to roughly $1,288 per ounce on Friday, inching higher after gaining 5 percent during December’s sell-offs. But in Cramer’s opinion, buying actual gold in the form of bars or coins isn’t the best way to get exposure.

“Unless you can afford to buy actual gold bars and store them in a depository bank, I don’t recommend owning the actual metal,” he said on “Mad Money.” “Most gold coins are sold as a significant markup, especially if you go to a coin dealer, and they’re not that liquid — it’s not like you can sell a gold coin all that easily through a brokerage account.”

Instead, Cramer recommended getting direct exposure through the SPDR Gold Shares Fund, his favorite gold-based exchange-traded fund, a gold-mining ETF, or the stock of a high-quality gold producer like Barrick Gold.

The SPDR Gold Shares Fund and gold-mining ETFs can be beneficial because they reduce risk and inconvenience, Cramer said. The former, for example, owns physical gold so you don’t have to, while gold-mining ETFs group risky mining stocks together to hedge against single-stock, or single-mine, risk.

But the longtime stock-picker also favored Barrick, a gold producer that recently acquired longtime Cramer-fave Randgold Resources.

“It’s definitely worth keeping an eye on” as the two companies perfect their combination, the “Mad Money” host said. “The company has the lowest total cash costs among its peers — I like that — [and] it has a nicely diversified portfolio of assets across the world — I love that.”

All in all, now may not be the ideal time to invest in gold, but adding some shine to your portfolio isn’t a bad move, Cramer concluded.

“No, this is not the perfect time to buy gold, but I always advocate owning at least a little as insurance against the unknown,” he said.

“We know gold’s a winner in times of chaos and uncertainty, so if you’re feeling a little bit worried about your portfolio, you might want to buy the GLD, or one of the gold-mining ETFs, or the new Barrick Gold,” he continued. “For the prudent, I recommend waiting until Barrick reports its first quarter as a combined company, even though I like the merger very much now that [former Randgold CEO] Mark Bristow’s in charge.”


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: elizabeth gurdus
Keywords: news, cnbc, companies, stocks, invest, goldmining, actual, buy, portfolio, worried, fund, youre, etfs, gold, barrick, cramer, jim


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Getting rid of debt is a pressing issue for Gen X and younger boomers

While the majority of middle-class Americans in their 40s and 50s are saving for retirement, getting rid of debt is a more pressing concern. Among that group, 33 percent say their top savings priority for 2019 is paying off debt, according to a new report from AARP and the Ad Council. That ranked ahead of building up their retirement fund (21 percent) and an emergency fund (11 percent). Even among just 50-somethings, paying off debt ranked slightly ahead of retirement savings, 31 percent vs. 29


While the majority of middle-class Americans in their 40s and 50s are saving for retirement, getting rid of debt is a more pressing concern. Among that group, 33 percent say their top savings priority for 2019 is paying off debt, according to a new report from AARP and the Ad Council. That ranked ahead of building up their retirement fund (21 percent) and an emergency fund (11 percent). Even among just 50-somethings, paying off debt ranked slightly ahead of retirement savings, 31 percent vs. 29
Getting rid of debt is a pressing issue for Gen X and younger boomers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: sarah obrien, sturti, getty images, thanasis zovoilis, moment
Keywords: news, cnbc, companies, savings, slightly, gen, boomers, pressing, rid, getting, fund, say, retirement, vs, ahead, younger, issue, ranked, debt, paying


Getting rid of debt is a pressing issue for Gen X and younger boomers

While the majority of middle-class Americans in their 40s and 50s are saving for retirement, getting rid of debt is a more pressing concern.

Among that group, 33 percent say their top savings priority for 2019 is paying off debt, according to a new report from AARP and the Ad Council. That ranked ahead of building up their retirement fund (21 percent) and an emergency fund (11 percent).

Even among just 50-somethings, paying off debt ranked slightly ahead of retirement savings, 31 percent vs. 29 percent.


Company: cnbc, Activity: cnbc, Date: 2019-01-11  Authors: sarah obrien, sturti, getty images, thanasis zovoilis, moment
Keywords: news, cnbc, companies, savings, slightly, gen, boomers, pressing, rid, getting, fund, say, retirement, vs, ahead, younger, issue, ranked, debt, paying


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Investing titan Jeff Vinik to re-open hedge fund: ‘The fire in my belly still burns’

“After six years of running my own money, the fire in my belly still burns,” said Vinik in a statement. Vinik, 59, announced plans on Thursday to resurrect Vinik Asset Management, the hedge fund he closed in 2013, returning about $6 billion to investors. His move comes even despite the large transformation that has taken place within the asset management industry in recent years. And greater competition and regulatory pressures have whittled away much of the alpha, or outperformance, that hedge


“After six years of running my own money, the fire in my belly still burns,” said Vinik in a statement. Vinik, 59, announced plans on Thursday to resurrect Vinik Asset Management, the hedge fund he closed in 2013, returning about $6 billion to investors. His move comes even despite the large transformation that has taken place within the asset management industry in recent years. And greater competition and regulatory pressures have whittled away much of the alpha, or outperformance, that hedge
Investing titan Jeff Vinik to re-open hedge fund: ‘The fire in my belly still burns’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: leslie picker, victor j blue, bloomberg, getty images
Keywords: news, cnbc, companies, fund, investing, investors, vinik, management, burns, running, closed, asset, funds, titan, reopen, jeff, belly, hedge, industry


Investing titan Jeff Vinik to re-open hedge fund: 'The fire in my belly still burns'

While other hedge-fund titans are running out of the proverbial burning building that is active management, Jeff Vinik is going back in.

“After six years of running my own money, the fire in my belly still burns,” said Vinik in a statement.

Vinik, 59, announced plans on Thursday to resurrect Vinik Asset Management, the hedge fund he closed in 2013, returning about $6 billion to investors.

His move comes even despite the large transformation that has taken place within the asset management industry in recent years. Investors have increasingly opted for index funds and exchange traded funds over active managers. Quantitative trading, or that dictated by computer algorithms, has become a higher percentage of daily volume. And greater competition and regulatory pressures have whittled away much of the alpha, or outperformance, that hedge funds enjoyed before.

For years, some giants of the industry have lamented about the markets working against them. Stock pickers such as Stanley Druckenmiller and Leon Cooperman as well as traders Eric Mindich and Andy Hall closed their funds to outside investors in the last decade. The average long/short equity manager lost nearly 7 percent last year, lagging the S&P 500, which slumped about 4.4 percent, including dividends, according to Hedge Fund Research Inc., which tracks performance.

Vinik is not deterred.


Company: cnbc, Activity: cnbc, Date: 2019-01-10  Authors: leslie picker, victor j blue, bloomberg, getty images
Keywords: news, cnbc, companies, fund, investing, investors, vinik, management, burns, running, closed, asset, funds, titan, reopen, jeff, belly, hedge, industry


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Amazon CEO Jeff Bezos and wife MacKenzie are divorcing

Amazon CEO Jeff Bezos and his wife, MacKenzie, are divorcing. The billionaire executive and his wife of 25 years announced the news Wednesday — three days before his 55th birthday — in a tweet signed by both of them. MacKenzie Bezos, a 48-year-old novelist, is often cited in the Amazon origin story as having supported her husband’s move off of Wall Street and into e-commerce. Shares of Amazon dipped slightly immediately following the announcement before paring those losses. WATCH: Jeff Bezos ann


Amazon CEO Jeff Bezos and his wife, MacKenzie, are divorcing. The billionaire executive and his wife of 25 years announced the news Wednesday — three days before his 55th birthday — in a tweet signed by both of them. MacKenzie Bezos, a 48-year-old novelist, is often cited in the Amazon origin story as having supported her husband’s move off of Wall Street and into e-commerce. Shares of Amazon dipped slightly immediately following the announcement before paring those losses. WATCH: Jeff Bezos ann
Amazon CEO Jeff Bezos and wife MacKenzie are divorcing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: sara salinas
Keywords: news, cnbc, companies, bezos, wife, ventures, jeff, mackenzie, amazon, friends, divorcing, ceo, fund, continue, lives, couple


Amazon CEO Jeff Bezos and wife MacKenzie are divorcing

Amazon CEO Jeff Bezos and his wife, MacKenzie, are divorcing.

The billionaire executive and his wife of 25 years announced the news Wednesday — three days before his 55th birthday — in a tweet signed by both of them. They have four children.

“We want to make people aware of a development in our lives. As our family and close friends know, after a long period of loving exploration and trial separation, we have decided to divorce and continue our shared lives as friends,” the tweet says.

The couple last year launched a charitable fund together, dubbed the Day One Fund. The statement Wednesday suggests they will continue to work together on that effort.

“We’ve had such a great life together as a married couple, and we also see wonderful futures ahead, as parents, friends, partners in ventures and projects, and as individuals pursuing ventures and adventures,” the tweet says.

MacKenzie Bezos, a 48-year-old novelist, is often cited in the Amazon origin story as having supported her husband’s move off of Wall Street and into e-commerce.

Shares of Amazon dipped slightly immediately following the announcement before paring those losses.

WATCH: Jeff Bezos announces $2 billion charitable fund


Company: cnbc, Activity: cnbc, Date: 2019-01-09  Authors: sara salinas
Keywords: news, cnbc, companies, bezos, wife, ventures, jeff, mackenzie, amazon, friends, divorcing, ceo, fund, continue, lives, couple


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With consumer protections in limbo, here’s how you can guard your investments

One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said. But coming up with one fiduciary standard for the industry has been slow.


One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said. But coming up with one fiduciary standard for the industry has been slow.
With consumer protections in limbo, here’s how you can guard your investments Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: lorie konish, thomas m barwick, getty images, joshua roberts, -ira rheingold, executive director at the national association of
Keywords: news, cnbc, companies, limbo, fiduciary, protections, houlihan, heres, investments, consumer, sure, financial, investment, standard, guard, fund, suitability, sec, rule


With consumer protections in limbo, here's how you can guard your investments

One of the goals following the financial crisis has been to implement a uniform fiduciary standard for investors.

That is essentially fancy language for requiring financial professionals to provide advice in their clients’ best interests. Currently, all registered investment advisors are required to act as fiduciaries. Brokers-dealers follow another rule, known as the suitability standard, which is considered less rigorous. That means that as long as the investment is appropriate for you, they can recommend it.

More from Personal Finance:

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Use ’em or lose ’em: How to make the most of all those gift cards

How to make sure a balance-transfer card will help you pay down your debt

But investments that are just suitable can be much more expensive for the investor, said Patti Houlihan, president and CEO of Houlihan Financial Resource Group and a member of the Committee for the Fiduciary Standard.

For example, you could have a choice between two similar funds, and one could have a much larger expense ratio, or costs associated with running the fund, compared with the other investment.

A financial professional following the suitability standard could put you in the more costly fund. If they were adhering to the fiduciary standard, they would not, Houlihan said.

But coming up with one fiduciary standard for the industry has been slow. The SEC first published a study on the subject in January 2011.

Though the SEC was authorized to propose a rule, the Labor Department pushed ahead with its own version that would have applied solely to retirement accounts. That regulation, however, was scrapped last year.


Company: cnbc, Activity: cnbc, Date: 2019-01-04  Authors: lorie konish, thomas m barwick, getty images, joshua roberts, -ira rheingold, executive director at the national association of
Keywords: news, cnbc, companies, limbo, fiduciary, protections, houlihan, heres, investments, consumer, sure, financial, investment, standard, guard, fund, suitability, sec, rule


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Another hedge fund all star struggled last year with Dan Loeb down 11%

Activist hedge fund manager Dan Loeb is another all star that struggled big time in 2018. Billionaire manager David Einhorn had a tougher year, with his main hedge fund losing 34 percent in 2018, the worst performance since Einhorn started the firm in 1996. Prior to 2018, Loeb had nearly doubled the S&P 500′s return for more than two decades. His main hedge fund returned 18.1 percent in 2017, while many of his peers significantly underperformed the market. The company and Third Point reached a d


Activist hedge fund manager Dan Loeb is another all star that struggled big time in 2018. Billionaire manager David Einhorn had a tougher year, with his main hedge fund losing 34 percent in 2018, the worst performance since Einhorn started the firm in 1996. Prior to 2018, Loeb had nearly doubled the S&P 500′s return for more than two decades. His main hedge fund returned 18.1 percent in 2017, while many of his peers significantly underperformed the market. The company and Third Point reached a d
Another hedge fund all star struggled last year with Dan Loeb down 11% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: yun li, jacob kepler, bloomberg, getty images
Keywords: news, cnbc, companies, fund, main, dan, market, losing, 2018, star, struggled, manager, point, 11, hedge, loeb, sp


Another hedge fund all star struggled last year with Dan Loeb down 11%

Activist hedge fund manager Dan Loeb is another all star that struggled big time in 2018.

His firm Third Point lost about 6 percent in December alone, bringing its yearly loss to about 11 percent, according to figures obtained by CNBC’s Leslie Picker.

Loeb is not alone in losing big money last year. Billionaire manager David Einhorn had a tougher year, with his main hedge fund losing 34 percent in 2018, the worst performance since Einhorn started the firm in 1996. The stock market, stirred by the trade conflicts and worries on a slowing economy, ended 2018 with the S&P 500 down 6 percent.

Prior to 2018, Loeb had nearly doubled the S&P 500′s return for more than two decades. His main hedge fund returned 18.1 percent in 2017, while many of his peers significantly underperformed the market. The fund gained 6.1 percent in 2017.

Third Point has a roughly 7 percent stake in Campbell Soup, which Loeb had been lobbying to add five directors to Campbell’s board. The company and Third Point reached a deal to add two of Loeb’s nominees to the board and allow the hedge fund to give input on its CEO search.

——CNBC’s Leslie Picker contributed reporting.


Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: yun li, jacob kepler, bloomberg, getty images
Keywords: news, cnbc, companies, fund, main, dan, market, losing, 2018, star, struggled, manager, point, 11, hedge, loeb, sp


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Hedge fund all-star David Einhorn posts his worst year ever, losing 34% in 2018

Billionaire hedge fund manager David Einhorn just ended his worst year ever. His Greenlight Capital’s main fund lost 9 percent in December, bringing its decline for 2018 to 34 percent, the worst performance since Einhorn started the firm in 1996, according to figures obtained by CNBC’s Scott Wapner. However, Einhorn’s hedge funds underperformed the market drastically — the S&P 500 ended 2018 down just 7 percent. He confirmed he was short Lehman a few months before the firm declared bankruptcy. T


Billionaire hedge fund manager David Einhorn just ended his worst year ever. His Greenlight Capital’s main fund lost 9 percent in December, bringing its decline for 2018 to 34 percent, the worst performance since Einhorn started the firm in 1996, according to figures obtained by CNBC’s Scott Wapner. However, Einhorn’s hedge funds underperformed the market drastically — the S&P 500 ended 2018 down just 7 percent. He confirmed he was short Lehman a few months before the firm declared bankruptcy. T
Hedge fund all-star David Einhorn posts his worst year ever, losing 34% in 2018 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: yun li, scott eells, bloomberg, getty images
Keywords: news, cnbc, companies, posts, hedge, 34, market, scott, david, einhorn, allstar, 2018, losing, worst, fund, short, lehman, manager


Hedge fund all-star David Einhorn posts his worst year ever, losing 34% in 2018

Billionaire hedge fund manager David Einhorn just ended his worst year ever.

His Greenlight Capital’s main fund lost 9 percent in December, bringing its decline for 2018 to 34 percent, the worst performance since Einhorn started the firm in 1996, according to figures obtained by CNBC’s Scott Wapner.

This collapse came in a dismal year when stocks and other risk assets took a huge hit from the ongoing trade battles and slowing global growth. However, Einhorn’s hedge funds underperformed the market drastically — the S&P 500 ended 2018 down just 7 percent.

Greenlight’s largest holdings include General Motors, insurer Brighthouse Financial and homebuilder Green Brick Partners, which all struggled in 2018, bleeding as much as 47 percent.

2018 sharply contrasted Einhorn’s early years, when he scored some of Wall Street’s best returns including 24 percent in 2006 and 32 percent in 2009. Einhorn also called the collapse of Lehman Brothers, perhaps the most prescient call of the entire financial crisis. He confirmed he was short Lehman a few months before the firm declared bankruptcy.

When it comes to losing money, Einhorn wasn’t shy about expressing his frustration. In a letter to investors in July, he said “over the past three years, our results have been far worse than we could have imagined, and it’s been a bull market to boot.”

“Yes, we have made some obvious mistakes — the worst of which was not assessing that SunEdison was a fraud in 2015 — but there have been others. A number of years ago one of our investors said Amazon would surpass Apple and become the most valuable company in the world. We didn’t get it then and, truthfully, we don’t really get it now,” he said in the July letter.

His funds have been lackluster since 2015 when they lost more than 20 percent. They returned 7 percent in 2016 and 1.5 percent in 2017.

The hedge fund manager recently became a critic and short seller of Tesla, even comparing the electric car maker to his call on Lehman Brothers.

— CNBC’s Scott Wapner contributed reporting.

WATCH: Greenlight’s David Einhorn sells remaining Apple shares


Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: yun li, scott eells, bloomberg, getty images
Keywords: news, cnbc, companies, posts, hedge, 34, market, scott, david, einhorn, allstar, 2018, losing, worst, fund, short, lehman, manager


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Stay away from this one banking stock this year, analyst Dick Bove says

While the rest of the group rallies, Dick Bove of Rafferty Capital Markets has a warning on one industry leader. “I don’t want to touch Goldman Sachs,” Bove said on CNBC’s “Trading Nation” on Wednesday. “People really don’t understand what the issue is concerning Goldman Sachs. A Goldman Sachs spokesman did not immediately return an after-hours message left by CNBC on Thursday. That Catch-22 will lead to a regulatory hangover that could weigh on Goldman Sachs for years and cost them millions, sa


While the rest of the group rallies, Dick Bove of Rafferty Capital Markets has a warning on one industry leader. “I don’t want to touch Goldman Sachs,” Bove said on CNBC’s “Trading Nation” on Wednesday. “People really don’t understand what the issue is concerning Goldman Sachs. A Goldman Sachs spokesman did not immediately return an after-hours message left by CNBC on Thursday. That Catch-22 will lead to a regulatory hangover that could weigh on Goldman Sachs for years and cost them millions, sa
Stay away from this one banking stock this year, analyst Dick Bove says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: keris lahiff, misha friedman, bloomberg, getty images, jin lee, drew angerer, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, sachs, bank, banking, analyst, malaysian, dont, away, bove, fund, billion, company, stock, goldman, millions, stay, dick


Stay away from this one banking stock this year, analyst Dick Bove says

Banks have entered 2019 in good spirits.

The KBE bank ETF rallied more than 1 percent on Wednesday, a good start after closing out 2018 with its worst losses in seven years.

While the rest of the group rallies, Dick Bove of Rafferty Capital Markets has a warning on one industry leader.

“I don’t want to touch Goldman Sachs,” Bove said on CNBC’s “Trading Nation” on Wednesday. “People really don’t understand what the issue is concerning Goldman Sachs. It’s that they were involved in this huge scandal related to Malaysia. It’s the fact that their compliance operations internally seem to have broken down.”

Goldman Sachs has been wrapped up in a scandal involving Malaysian state investment fund 1MDB, for which the bank had orchestrated three bond deals in 2012 and 2013 that raised $6.5 billion. The 1MDB fund has been mired in impropriety involving allegations of corruption and money laundering. The Malaysian government has since asked Goldman for $7.5 billion in reparations.

A Goldman Sachs spokesman did not immediately return an after-hours message left by CNBC on Thursday. The firm has denied wrongdoing, and accuses members of the former Malaysian government and 1MDB of lying to the firm about the use of proceeds from the transactions.

Bove says Goldman’s involvement with the scandal-ridden fund either uncovers ineptitude at the top of the company or a failure of its systems.

“In order for some entity to give $6 billion over three issuances, the highest level of the company must agree to it,” Bove said. “The net effect is that the company cannot say that they did not approve this at every level. But then what they can say is we were victimized and if you were victimized it’s because your systems are no good.”

That Catch-22 will lead to a regulatory hangover that could weigh on Goldman Sachs for years and cost them millions, says Bove.

“The Fed comes in and it says, ‘OK, what we need to do is take a look at all of your internal systems — everything from human resources, all the way out to risk management,'” Bove said. “It costs tens of millions of dollars, hundreds of millions of dollars to do that. And it takes two to three years because it isn’t a simple run-through.”

As for the rest of financials, Bove says heavy losses in 2018 have made for more attractive valuations.”I don’t think anyone could make a case that bank stocks are expensive and I definitely don’t think that they can make the case that there is some weakness that’s going to show up from operating earnings,” he said.

However, Bove remains in wait-and-see mode until he can dig into the major banks’ loan portfolios when they report in coming weeks. Citigroup, JPMorgan, Wells Fargo, Bank of America, Goldman Sachs, and Morgan Stanley kick off the reporting season with their earnings reports in the week beginning Jan. 14.


Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: keris lahiff, misha friedman, bloomberg, getty images, jin lee, drew angerer, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, cnbc, companies, sachs, bank, banking, analyst, malaysian, dont, away, bove, fund, billion, company, stock, goldman, millions, stay, dick


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