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A top-performing hedge fund manager used a quote from the Wall Street movie “Margin Call” to explain why it is so scary out there.
Russell Clark, the founder of $ 2.75 billion fund Horseman Capital Management, cited a scene in the Wall Street movie in a recent investment letter. He said:
The future for me is now more uncertain than at any time I can remember. Or to fully quote the Chairman of the Board from Margin Call, “I’m here to guess what the music might do a week, a month, a year from now. That’s it. Nothing more. And standing here tonight, I’m afraid that I don’t hear – a – thing. Just… silence.”
In other news, Argentina has come to an agreement to pay a group of holdout hedge fund creditors who invested in the country after its economic collapse in 2001. Valeant is getting punished for trying to head fake Wall Street. And Yahoo published the $ 16 million offer letter it sent to poach its chief revenue officer from Amazon.
In Warren Buffett news:
In China news, China expects to lay off 1.8 million workers in the coal and steel industries. That is a lot of people. Deutsche Bank estimates that $ 328 billion has been moved out of China in secret. That is a lot of money.
And if you missed it on Friday, Business Insider was first to report that Bank of America is preparing for significant job cuts across its global banking and markets business.
Here are the top Wall Street headlines at midday:
China’s latest move to keep cash in the country sticks it to foreign investment funds – China is pressing pause on a scheme that allowed wealthy citizens access to investments outside the country.
IMMELT: Shame on us if we need activists to point out what we’re doing wrong – The CEO of General Electric doesn’t really mind activist investors.
American Express is officially selling its massive Costco business to Citi – American Express is selling its exclusive Costco portfolio to Citi.
HEDGE FUND MANAGER: There are lots of Gordon Gekkos on Wall Street, and that needs to change – Value investor Guy Spier, a Warren Buffett disciple and founder of Zurich-based Aquamarine Fund, said that he might have served the world a lot better had he studied something else in school.
Only one person can stop China from buying up big American companies – Chinese companies are buying up foreign businesses, including American ones, at an unprecedented rate, and it’s starting to worry lawmakers.
‘The King of Capital’ earned $ 734 million last year – Steve Schwarzman, cofounder of private-equity giant The Blackstone Group, is known in some circles as “The King of Capital.” Here’s why.