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Hedge Fund Ratings Will They Help?
Hey Guys,
As some of you know. U.S. hedge funds are very secretive about what they do. Also, almost ‘anyone’ can create one. Which has created a large amount of backlash. From the investment community, as a whole.
With hedge funds growing a huge amount of interest. Financial services are taking a piece of the pie. Moody’s Investor Service has created new ratings for hedge funds. The ratings are not based on investment strategies or portfolio risks. Since, hedge funds are not going to give out this information. The new ratings are based on ‘operational quality’.
Here is what Kathryn Kerle, vice president at Moody’s told Bloomberg about the new ratings. “These ratings are on the manager as opposed to the fund itself. Moody’s won’t rate the creditworthiness of hedge funds or the effectiveness of an investment strategy, she added.”
Moody’s will offer hedge funds a private rating. Before, they make the ratings public. This should intice fund managers to let Moody’s rate them. Of course, hedge funds can deny the ratings. Which wouldn’t let Moody’s publish the ratings and/or review their fund.
The ratings add little value to the largest hedge funds. Why would a huge hedge fund manager let Moody’s rate them? I can’t even think of a reason. I expect to see, growing and new hedge funds participate in the ratings. To have something to tell investors and grow. So, is this really going to help? They’re too many twists and directions to figure. It’s a step into the right direction, though.
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Warren Buffett Still Buying USG Corporation
Hey Guys,
As one of my first posts I made. Was about Warren Buffett and his company Berkshire Hathaway buying up the stock of “NYSE: USG” Usg Corporation. USG recently went bankrupt and was allowed by the courts to pay back amounts in the billions to creditors and plaintiffs of asbestos lawsuits. They made a “Rights Offering Agreement” to raise money with various sharholders and companies. Other agreements were made with Berkshire Hathaway’s subsidiary National Indemnity Co. Which one agreement basically, was that Warren Buffett couldn’t takeover the company before seven years. Unless, other wise stated or initiated by USG’s board of directors and/or shareholders. If I remember correctly, but don’t qoute me on this. That Berkshire Hathaway could own up to about 30-40% of the company. By buying shares at market price. Which looks like Berkshire Hathaway has been doing.
Since, I last made a post on this subject. Berkshire Hathaway owned only about 13,469,274 shares. Which was a little after Berkshire purchased 6,969,274 more shares. Now, a few weeks later Berkshire owns as of 08/28/06 reported 16,700,992 shares of USG Corporation. (Look for Yourself at the Reported Owned Shares). What is that, about 120,000,000 million dollar investment in 3 weeks. Of course, this is only pocket change to Berkshire Hathaway
Think about it, If somehow and someway that Berkshire takes over USG. Then, pays off all of the bills. How much would USG be worth then? Also, in my mind I don’t think Berkshire would have to pay of the bills of USG. Usg Corp, was growing their revenues and recorded 2006 2nd quarter PROFIT growth of 62%, despite the bankruptcy.
I just don’t know. Its a possibility. Just your own homework and ask an advisor about it.
Usg Corporation is a Building Material Manufacturer with about 14,100 employees.
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