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What we’re reading this week

Hedge Funds

In 2013 Phillip Falcone paid the SEC 18 million to settle charges without admitting wrong doing. He was also banned from the securities industry for 5 years. Among other things, he was accused of paying his personal taxes with $113,000 of investor money from his hedge fund Harbinger Capital Partners. Now he has started another venture, HC2, which sounds more like a movie sequel than a second business. True to narrative he states, “I look at this vehicle as success is the best revenge.” HC2: This time its personal.

Sauce

I came across a link to this article in Matt Levine’s Money Stuff on Bloomberg (always a great read). It’s a real expose on how restaurants are using sauce to lure millennials into their doors. It comes replete with great lines like this: ‘”There is a really unique group of people out there that are really looking for lots of heat,” said Todd Kronebusch, vice president of innovation at Buffalo Wild Wings. The chain refers to them as “hotheads,” he said.’ And, ‘Chief Marketing Officer Kevin Hochman said. “It’s a lot more than just the chicken. You also have to have a sauce that wins.”’ Vice President of innovation? Sauce that wins? This is at the same time, the best and worst of capitalism…or the best and worst of millennials. There is a lot going on here.

China

China Galaxy Securities issued a research note on its own stock, and rated it a buy. Thanks guys! Since May the firm has seen its share price drop 60%. Of the Chinese markets in general the firm had this to say, “It is overly bearish.”

Hedge Funds Again

Hedge fund Universa Investments LP supposedly made a billion dollars on the market’s correction a few weeks ago. The fund seeks to “profit from extreme events in financial markets.” I think they mean extreme loss specifically. As a rule, most hedge funds try to profit from extreme gains in the market.

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Categories: Industry Ideas, News, The Market