Best trade of the week!
EUR/NZD!
I should be a Fund Manager
At least … I was sceptical about the behaviour of a couple of Funds when I observed what they were buying.
Candidate #1
I was holding this Fund because of the attractive yield, and because the Fund was exposed to certain money-paying companies who were not listed on other stock exchanges. …but what timing! Just as the oil price was starting to recover, the point at which I was hopeful of seeing a recovery in business performance, the wankers decided to pull the plug.
Shortly before this announcement the < disparaging description of fund managers > decided to buy into a small oil company in which I already held some shares. The timing of the buy smelled of desperation, the particular company being a longer term investment (that company is still in business). It showed a lack of careful consideration, IMHO. However I did get back slightly more than my total investment.
…
Then we have Mr.Woodford. For me the warning bell clanged when I spotted these two activities. Particularly the first event below.
a) his Fund bought a large stake in the AA Plc. Admittedly the AA share price had become quite depressed, and the AA was allegedly a money-printing business, but they seemed to have forgotten a fundamental rule: the lowest price for a share is zero. Additionally it was a clever ‘exit’ by a Private Equity group, Acromas, who shackled the AA with a fantastic debt burden approaching £3bn and launched them into the stock market as a cash generative recovery play. The AA was and still is struggling, with their best board member leaving after falling out with the others because of their apparent ‘snouts-in-the-trough’ behaviour. So far there is no evidence that that has changed, and the AA share price is even further depressed … a few more pence down and it will have lost 90% of its peak price.
b) I’m not sure if it was the scrabble for liquidity in order to repay investors who were trying to exit but the Fund started bailing out of one of the best paying Investment Trusts, as I pointed out a few weeks ago. At the time it seemed odd to me, the abandoned Investment Trust still trades well under NAV and still returns a fantastic yield, and I am still buying them. So it is difficult to understand why the Woodford operations would ditch such a good payer (which is needed to reward investors in the Woodford income fund).
A not so marvellous achievement that may yet see people barred from working in the investment industry.
That is very interesting! I have a article for you later that in a indirect way touched upon this subject matter that not too many are deeply aware of! The dark pool is what I want to explode a neutron bomb with! I know who these fuckers are, and the circles they mingle with! Every time I think about it, I then devolve into accepting what a wretched species we are! We are no better than any other animal on this planet seeking its prey! Feast or famine in their eyes! The great equaliser though, is a high powered rifle, with the best scope and the enhancers = a few carpet bombs, daisy cutters, napalm, and a solid reusable RPG placed at the right targets! Makes good for a great Ludlum novel!
If you haven’t seen “The Big Short”, you should. That is also an expose on wanton idiocy.
…and I enjoyed the film 
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I think I watched that film some time ago! It was about the Lehman Bro. Collapse? My favourite film on the subject matter is “Inside Job” it really exposed a lot of people responsible for the 2008 Financial crisis. Guys like Summers, Poulson, Gietner, Calfano, Mazillo, Corzine! Some of us will never let this go as most of these scum bags should have been in jail!
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That dog looks Satanic!
Not really, I don’t think Lehman was mentioned at all, except in passing. It was about a couple of Fund Managers who looked at what was happening with CDO repackaging, and decided to short the ‘housing market’, to the ridicule of almost everyone in the financial industry.
I shall have to watch it again because that little detail has escaped me. However one aspect which has parallels with Neil Woodford’s situation is that one manager closed his fund for withdrawals as the market (and investors) became risk averse.
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Maybe I am mixing Lehman Bros with Bears and Stern as I recall a scene in that movie when it’s stocks were falling by the minute while some executives were attending a meeting and the big sell off went into a frenzy! Wasn’t Christian Bale Playing the Character who was some California hedge fund guy betting it all?
Here, try this…
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Yeah I remember seeing this movie!
Here is that article I was talking about earlier!
So far there is no retraction, so maybe tomorrow…
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Well…
Further to the Company’s announcement released on 5 June 2019, the Company announces a further delay to publication of its annual accounts for the financial year ending on 31 December 2018. The Company continues to work with Deloitte to finalise its audit and now expects to publish its annual accounts by 19 June 2019.
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Stock tip for you die hards here! The greatest trade to have the most yield is “Crowd Strike” Going on shorts will probably give you a good bet! Just something to keep your eye on, and I certainly am, and when I get more info I will update interested parties!
Just remember where you it heard from.
Yeah!
Your Welcome!
It’s a fucking great film. Not only are the actors top notch, so is the script. It sheds light on the whole financial situation. The average person thinks it’s a bunch of brilliant minds at the top that are governing everything. When really, it’s more akin to a bunch of monkeys on typewriters with short fuses.
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Currently long on the NZD/USD at 0.64920. But yeesh, all of these central banks talking on the same damn week. Can’t they learn to space it out a bit? First it’s the EUR talks, then the AUD, then the EUR again. After that it’s the FED and the BOJ. I hate these weeks. Little to nothing ever happens on them, because some traders and fund managers are just waiting for a sneeze during a speech, so they can hit buy or sell. But there isn’t a damn sneeze on these weeks!
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And of course the offsiders of the talking heads are conveniently positioned prior to the “blurb” , pure coincidence of course ! Good Luck with N/U.