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Overly Leveraged Private Equity Deals Add to Unemployment and Deepen Recession

Shah Gilani (December 11th, 2008) Writes:

The once booming business of private equity faces an uncertain future. What’s not uncertain, however, is that many private equity deals are imploding from the weight of leveraged debt and greed. Inevitable bankruptcies will result in higher unemployment and a deeper recession.

Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded.  The name “private equity”is the rechristened, kinder and more gentile label for what used to be known as leveraged buyouts, or LBOs. But make no mistake about it, while leverage may not be part of the name any more, it remains a big part of every private equity deal.

LBO firms, or “franchises”, as Henry Kravis, co-founder of Kohlberg Kravis Roberts & Co. (KKR), likes to call his shop, acquire publicly traded operating companies. Then they streamline management and operations to increase profitability and hope to cash out

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Alliance Data Systems Corp.;, Alpha Media Group Inc.;, American Media Inc.;, Apollo Group Inc, Bank, bank lenders;, Blackstone Group LP;, Carlyle Group Ltd.;, Cerberus Capital Management LP, Chrysler LLC, contrarian profits, Delaware Court of Chancery;, Delphi Corp.;, Federal Deposit Insurance Company;, Federal Reserve System, Fortress Investment Group Llc, GateHouse Media Inc.;, General Motors Acceptance Corporation;, GMAC LLC;, Goldman Sachs Group Inc, Harbinger Capital Partners, Henry Kravis, Hexion Specialty Chemicals Inc., Huntsman Corp., John Snow, Kohlberg Kravis Roberts & Co, Lazard Ltd.;, Lillian Vernon;, Linens 'n Things, Market Commentary, Maxim;, Merrill Lynch, non-bank lenders;, piggy-bank, Randall Quarles;, Residential Capital LLC;, Sallie Mae, SLM Corp, sound banking;, Standard;, Steve Rattner's Quadrangle Capital Partners;, Texas Pacific Group;, Thomson Reuters, TPG Capital;, UBS Securities LLC, United Rentals Inc, Us Federal Reserve, Us Treasury, USD, Washington Mutual Inc

Blue Ridge Capital Hedge Fund | John A. Griffin Holdings Analysis | New York

Richard C. Wilson (September 22nd, 2008) Writes:
Blue Ridge CapitalBlue Ridge Capital | John A. Griffin Holdings AnalysisThis post is being written as part of my Investment Securities Tool which analyzes the holdings of hedge fund managers.Blue Ridge Capital is ran by John A. Griffin. Griffin is similar to Steve Mandel at Lone Pine Capital and Lee Ainslie at Maverick Capital in that they all are 'Tiger Cubs' (a.k.a. pupils of Julian Robertson while at Tiger Management). Griffin though, is more well known because he was Julian Robertson's right hand man. So, needless to say, the dude knows his stuff. Blue Ridge seeks absolute returns by investing in companies who dominate their industries and shorting the companies who have fundamental problems. And, right off the bat that presents us with a bit ...
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Alex Prywes, America, America Movil, American Express, Anadarko Petroleum, Berkshire Hathaway, Blue Ridge Capital, Blue Ridge Capital Hedge Fund, Blue Ridge Capital Management, Blue Ridge LLC LP Fund, Charles Schwab, Compton Petroleum Corp., Countrywide Financial, Covanta, Discovery Holding Co, Elong Inc, Fairfax Financial Holdings, Fannie Mae, First American Corp, Fomento Economico Mexicano, Free Daily, Gold Reserve Inc, goodrich petroleum, google, Greenlight Capital Re Ltd, Grupo Televisa, healthcare, Hedge Funds, Indymac Bancorp, John A. Griffin, Jon John, Julian Robertson, Lee Ainslie, Lone Pine Capital, Martin Marietta Materials, Maverick Capital, mbia, Millipore, Natural Gas Prices, New York, Office Depot, Oil Prices, Packaging Corp, Perfect World Co, Research-In-Motion, Securities And Exchange Commission, SLM Corp, St Joe Co, Starbucks, Steve Mandel, Visa Inc, Vulcan materials, Washington Mutual, Wyeth

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