Saturday, September 8, 2007

Thanks Mr. Vishwajeet Jhavar, CEO, Marvel Realtors , Pune for the good news about US Hedge Fund Och-Ziff Capital Management Group LLC !

In the last 30 days, because of the Subprime Crisis, i didn't find a single good news about US Hedge Funds. Every time i read the word "Hedge Fund" i used to check the 'Imploded' list on "Hedge Fund Implode O Meter". The "imploded" list contains hedge- or hedge-like funds which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity.

Not only me, we all, all over the world, are worried about Subprime Crisis and it's effect on our economy. Would Subprime Crisis slowdown the inflow of funds from overseas? There are apprehensions that the fiasco in sub-prime market in US would have an impact on Indian real estate market.

In the last one month, my friends who have been criticizing RBI for its so-called anti - hedge funds posture have realized that "RBI was right about Hedge Funds"! The RBI fears because of the Subprime Crisis hedge funds in the US will start receiving redemption requests from investors and this could result in outflow of capital from India.

US subprime mortgage crisis all through August has led to a fall in assets of mutual funds in India by over Rs18,500 crore. Analysts say the reason is 'the redemptions by investors on concerns of a Indian stock market meltdown'

Of course, there wasn't any bad news about Och-Ziff Capital Management Group LLC. Hedgemedia's AltInvestment Global News Round-Up has given a news that Och-Ziff Capital Management has disclosed that it wasn't materially impacted by the adverse conditions in the mortgage financial markets, particularly the sub-prime sector. But this statement was made as part of its regulatory filings ahead of its upcoming USD2bn flotation! What else do you expect before the issue?

But National Post said Och-Ziff Capital will most probably postpone, restructure or even withdraw it's US$1.25-billion Initial Public Offering!

Yes, if the Hedge Funds lost the battle in the US Congress against the tax rise they have to pay taxes at the 35 percent corporate rate instead of as partnerships, which allow investors to pay capital-gains taxes of 15 percent. Bloomberg had said Och-Ziff Capital would face the higher burden immediately because they have filed to sell shares to the public!

When i was reading all this and other depressing news (Did i say depressing? Sorry! I avoid using all 'D' words, including 'Deflation'. Do you know, what is Deflation?) your news about 'Marvel Och-Ziff Joint Venture' sounds good to me. Your's is the only positive, assuring news about the Och-Ziff (or may be even about any Hedge Fund) in the entire month.

Sorry, i can't say 'only' because there was one more news in the New York Times. You must have been introduced to the son of Virginia Johnson and R. Sheldon Johnson. Hats off to Robert Sheldon Johnson III! What a great sacrifice for the company. I am sure, Daniel must have became very happy and grateful to both of you. Why only Daniel? Everybody on the Wall Street must be thankful to you. After all, whatever happens 'Hedge Funds are here to stay'.

From Wall Street let us come down to Dalal Street, Mumbai, India. I am sure, Mr. Uday Kotak must have sent Red Roses to you. After all he is also coming into the Hedge Funds. And what about PBAP? I wish the Promotors and Builders Association of Pune should honor you! The honorable President was very upset with 390 members out of 400 of his organization for their inability to bring in FDI in the Pune real estate market. Mr. Vishwajeet, you have made everybody very happy. I wish you all the best. Take care.

1 comment:

  1. Mr vishwajeet jhavar (Marvel Realtors) Kindly release my TDS amount for Rs 1.20 lacs in my 26AS FORM still pending from your end
    Jai Hind