Thursday, May 10, 2012

JPMorgan Loses $2 Billion Dollars

Bloomberg is reporting that JPMorgan has lost $2 billion dollars playing the markets.
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said the firm lost about $2 billion on synthetic credit securities after an “egregious’” failure in its chief investment office, which the bank says focuses on hedging.
“This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed,” the New York-based company said today in a quarterly securities filing. JPMorgan declined 5.5 percent to $38.50 in extended trading at 5:55 p.m. in New York.

Here is a small excerpt from the shareholders conference call.

Some commentary on the loss.

Friday, May 4, 2012

Hugh Hendry Predicts Debt Crisis Heading for China

Hugh Hendry is making headlines once again, in this story.
Hugh Hendry, one of the hedge fund industry's most outspoken managers, has warned that the economic crisis is headed for Asia, with the region's largest economy, China, struggling under a bursting property bubble and tumbling demand for its exports. Hendry, who runs Eclectica Asset Management, which has around $700 million in assets, said in his first investor letter of great length since the winter of 2010 that he was "more pessimistic on Chinese growth than ever."
Hendry made a video with the BBC that showed a day in the life of a hedge fund manager.