Tim's Feed
Nov 19, 2014

Falling oil prices hit junk bonds in energy sector

NEW YORK, Nov 19 (Reuters) – Several months ago, U.S. mutual
funds scooped up most of the $1.25 billion in high-yield junk
bonds issued by Denbury Resources Inc, a Plano, Texas,
oil and gas exploration company.

But since late August, amid falling oil prices, the price on
the Denbury bonds issued in April has dropped 8.25 percent to
about 94 cents on the dollar. The bonds’ yields, which move
inversely to price, have surged to about 6.5 percent from about
5 percent.

Nov 13, 2014

Activist hedge fund Marcato takes stake in BNY Mellon: filing

BOSTON (Reuters) – Hedge fund Marcato Capital Management has bought a 1.6 percent stake in the Bank of New York Mellon, becoming the second prominent activist investor in recent months to disclose a position in the world’s largest custody bank, according to a regulatory filing.

San Francisco-based Marcato’s stake is valued at $688 million, making it the biggest position of the $3 billion firm, according to the filing, which details holdings at the end of the third quarter.

Nov 7, 2014

U.S. funds turn eye to major oil stocks amid volatile market

BOSTON, Nov 6 (Reuters) – Welcome back “Big Oil.”

U.S. stock funds with big bets on the stars of the American
shale-energy boom have taken a beating recently amid plunging
oil prices. In response, portfolio managers say they are turning
an eye back toward big, integrated oil stocks, which have
weathered the energy sector sell-off better for the most part.

The strong balance sheets and diversified global operations
of majors like Exxon Mobil Corp, Chevron Corp and BP plc, have
sheltered index funds and some active portfolio managers from
the worst of a volatile ride on energy markets, where oil prices
have plunged 21 percent since early August.

Nov 4, 2014

Insight – Top investors stay loyal to big name corporate founders

BOSTON (Reuters) – For good stock market bets, some top investors can’t be too bothered by details like corporate profits: instead, they pick companies run by their founders.

Four of the top six performing companies on Nasdaq over the past five years as of Oct. 29 are run by founders, including Bruce Cozadd’s No. 1 Jazz Pharmaceuticals plc and Reed Hastings’ No. 6 NetFlix Inc. Jazz is up 2,426 percent and internet streaming company Netflix has gained 584 percent, according to an analysis of companies with market caps of $10 billion (6.25 billion pounds) or more by FactSet Research Systems Inc.

Nov 4, 2014

Top investors stay loyal to big name corporate founders

BOSTON (Reuters) – For good stock market bets, some top investors can’t be too bothered by details like corporate profits: instead, they pick companies run by their founders.

Four of the top six performing companies on Nasdaq over the past five years as of Oct. 29 are run by founders, including Bruce Cozadd’s No. 1 Jazz Pharmaceuticals plc (JAZZ.O: Quote, Profile, Research, Stock Buzz) and Reed Hastings’ No. 6 NetFlix Inc. Jazz is up 2,426 percent and internet streaming company Netflix has gained 584 percent, according to an analysis of companies with market caps of $10 billion or more by FactSet Research Systems Inc.

Nov 3, 2014

Fidelity, T. Rowe Price funds load up on Alibaba shares

BOSTON (Reuters) – Big mutual funds at T. Rowe Price Group (TROW.O: Quote, Profile, Research, Stock Buzz) and Fidelity Investments are the industry’s largest holders of Alibaba Group Holding Ltd (BABA.N: Quote, Profile, Research, Stock Buzz) shares, according to recent fund disclosures.

Alibaba’s initial public offering in late September, the largest in history, has helped boost the performance of many fund managers, the data show.

Oct 23, 2014

Bond funds stock up on Treasuries in prep for market shock

BOSTON (Reuters) – U.S. corporate bond funds this year are adding Treasuries to their holdings at more than twice the rate of corporate debt amid concern that the struggling European economy and potential changes in Federal Reserve policy will drag down profits at U.S. corporations.

Through September, corporate bond portfolios boosted their holdings of U.S. government debt by 15 percent, compared with a 6.5 percent increase in corporate bonds during the same period, according to Lipper Inc data. The funds now hold about $13 billion in Treasuries, 15 percent more than the $11.3 billion they held at the end of 2013.

Oct 23, 2014

Analysis – Bond funds stock up on Treasuries in prep for market shock

BOSTON (Reuters) – U.S. corporate bond funds this year are adding Treasuries to their holdings at more than twice the rate of corporate debt amid concern that the struggling European economy and potential changes in Federal Reserve policy will drag down profits at U.S. corporations.

Through September, corporate bond portfolios boosted their holdings of U.S. government debt by 15 percent, compared with a 6.5 percent increase in corporate bonds during the same period, according to Lipper Inc data. The funds now hold about $13 billion (8.09 billion pounds) in Treasuries, 15 percent more than the $11.3 billion they held at the end of 2013.

Oct 17, 2014

BNY Mellon says charging clients on their euro deposits

BOSTON (Reuters) – BNY Mellon Corp, the world’s largest custody bank, said on Friday it began earlier this month charging clients 0.20 percent on euro-denominated deposits that recently totaled about $33 billion.

BNY Mellon initiated the charge on Oct. 1, reflecting a recent move by the European Central Bank to charge 20 basis points on deposits in hopes of persuading banks to lend more money to businesses and consumers.

Oct 16, 2014

In a hard-bitten corner of Boston, Yellen plumbs state of job market

CHELSEA Mass (Reuters) – A third of the 37,000 people in this dense township near Boston didn’t graduate from high school, nearly half were born outside the United States and few own their own homes.

But it was here that Federal Reserve Chair Janet Yellen came on Thursday for insight on the U.S. economy, quizzing town officials and residents at a non-profit organization about the state of affairs in one working-class neighborhood.