When the markets go bananas, the stories start to fly. We check in on some of the tales that were being told on Thursday:
Jimmy’s a goner
Bear Stearns’ chief executive James Cayne was said to be on his way out - variously jumping or with a boot in the back.
Senior MD of investor relations at Bear, Elizabeth Ventura, told Dealbreaker: “These types of rumors are irresponsible and have no basis in fact.”
Alrighty then…
Tykhe Capital is gonna blow
There was widespread talk that Tykhe had hit trouble on Thursday and notable online heat (Fintag, Naked Shorts) surrounding the New York fund that was to manage a chunk of the assets in Man’s US-listed vehicle, the float of which is now reportedly delayed.
The WSJ reports that Tykhe, a quant firm that manages about $1.8bn, has suffered losses of about 20 per cent in its largest hedge fund so far this month, and is moving quickly to trim its investment positions. Tykhe isn’t closing down, according to an investor briefed by executives. Calls to Tykhe seeking comment weren’t returned.
Goldman funds taking a pasting/Alpha fund being liquidated
Ongoing this one. Liquidation stories denied. Goldman shares fell 5.7 per cent.
Global Alpha down about 16 per cent for the year, after a choppy July where it lost 8 per cent. (WSJ)
Goldman’s North American Equity Opportunities fund fell 12 per cent in July and a further 12 per cent in the the first few days of this month. (FT)
Stand by - bad news coming from WestLB
The German bank admitted exposure to the US subprime mortgage market, but denied it was facing a liquidity problem; said its situation did not “in any way compare” with that at IKB. (FT)
Watch the quants (Dealbreaker)
