Hedgies Getting Horsey
Interest in the sport of polo is on the rise in England. Since 2000, the number of clubs devoted to the stuffy past-time has jumped from less than 40 to more than 60, with five or so claiming to have at least 100 members. Where’s all the interest coming from? Most of them work for the likes of UBS, JP Morgan or Citigroup,” according to one club owner. “They’re traders or they work for hedge funds.”
Making a Mint Out of Polo Ponies [BBC]
Goldman: To Russia With Traders
A year after helping to structure a $13 billion syndicated loan to finance Gazprom’s takeover of Sibneft, Goldman Sachs has been given the go-ahead to set up trading operations by the Russian Federal Financial Markets Service. Goldman, which is also advising the country’s second-largest bank on an upcoming $2 billion offering, has allegedly already been head-hunting local traders.
Goldman Gets Russia Dealer Permit [Reuters]
Hedge Funder Antes Up in Vegas
David Einhorn, a 37-year-old hedge fund manager from New York, had a big day at the World Series of Poker, moving into third place with a chip count of 6.9 million, still a long way back from from the frontrunner, a former Hollywood agent with 13 million in chips. Earlier in the day, 45 players had begun a nine-day competition in pursuit of the grand prize of $12 million. Einhorn personal account won’t be affected either way: He’s playing for charity. Every dollar he wins will go to the Michael J. Fox Foundation for Parkinson’s disease.
Agent Keeps Poker Lead [KFMB.com]
Hedge Funds Good For Metro North Business
While hedge fund returns may have suffered as the number and size of funds has proliferated, one group’s top line has continued to thrive from the boom: Metro North Railroad. As the balance of power in the hedge fund industry has shifted from New York City out to the Connecticut suburbs, the number of young traders doing the reverse commute has ballooned. Over the last decade, the number of commuters from Manhattan to Greenwich has increased 150 percent and 170 percent from Manhattan to Stamford. While the middle-age shlubs who live in the burbs enjoy the short commute to the office, the younger set can’t stomach the idea: “Greenwich is quiet, peaceful and clean,” according to one reverse commuter. “But I am 24 and single — I couldn’t imagine living in Greenwich.”
A Trader’s Train to Wall Street [NY Times]
Natural Gas Bet Bankrupts Hedge Fund
Despite a booming energy market that has translated into bonanza profits for most investors in the space, a fund run by the former president of NYMEX went into a death spiral in recent months as bearish bets combined with large-scale redemptions. The two-year-old fund, MotherRock, was down 23 percent in the first half of ‘06, which resulted in almost half of its $450 million in assets walking out the door. Its back against the wall, the fund placed a make-or-break bet that the price of natural gas would decline only to be confronted by the hottest summer in years. The fund recently sent a letter to investors telling them that they “were developing a detailed plan for winding down the fund.”
Pain in the Gas [NY Post]
