Wall Street’s Biggest Turkeys of 2006
Investors have been taken on a wild ride in 2006. A relentless ramp kicked off the year, led by all things commodity-related. But May turned ugly as the crowded leadership groups turned tail. Geo-political tensions ensured that June and July were better spent at the beach than a trading desk. But buying into fear usually works if you can survive the drawdown and ‘06 has turned into a decent year for most investors.
But not all.
15 lb Turkey
The Detroit Lions never scare anyone Thanksgiving Day. But Tigers are the most feared cat on the Street. Indeed, one can only surmise that tigers breed like rabbits given how many Tiger Cubs stalk the dark recesses of Broad and Wall. Tiger alum Dwight Anderson, of Ospraie Management LLC, took it on the chin earlier this year as copper prices defied his quantitative models and a short position in the metal tarnished his precious reputation. But don’t cry for Dwight. His other funds righted the ship and he is still in business. For now.
20 lb Turkey
The story of Brian Hunter and Amaranth Advisors has been beat to death. But we have a different take on it. Sure, losing $5 billion sucks, but we think he is a bigger turkey for driving his Ferrari in the snow.
25 lb Turkey
In Greek mythology Apollo is a god. On Wall Street Apollo is a turkey. Everyone involved with this company has been tarred and feathered. Apollo paid beaucoup bucks to slap the name of their University of Phoenix subsidiary on the new home of the hapless Arizona Cardinals. Two turkeys there.
The CEO and CFO have both recently left the company. No worries for them however...they can live off of the proceeds of suspicious options awards. Two more Turkeys.
Sands Capital dropped a cool $500 million or so on the position over the last year. Not exactly chump change for a firm that size.
And the Citigroup analyst covering the stock has been roasted to a crisp. After initiating coverage with the stock in the mid-$50’s, Shitigroup recently pulled the plug and downgraded. Of course, the cruel stock gods lifted the issue 5% or so on the news of the rating flip-flop. Contrary indicator indeed.
Turkey’s are a native species on Wall Street. Perhaps you are a turkey if you are reading this post on Thanksgiving instead of spending time with friends and family.
We gotta hop ourselves. An old friend needs some attention. Thirty-six years old and still holding up like a champ. But much like a turkey this bottle ain’t likely to survive the day.
Sleep it off and we will see you tomorrow. 
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