Hedge fund managers

Another Hedge Fund Manager Doesn’t Like the Smell of Green Mountain’s Accounting

Green Mountain Coffee Roasters Inc. […], maker of the single-serve Keurig brewing machine, fell to the lowest in seven months after hedge fund managing director Whitney Tilson said there may be potential for accounting fraud at the company. Green Mountain fell 10 percent to $58.19 at 1:07 p.m. in New York, after dropping to $56.19, the lowest intraday price since March 10. The shares lost 22 percent in the week before today after David Einhorn, the president of Greenlight Capital Inc., said the company has a “litany of accounting questions” and needs to improve its transparency. [Bloomberg, Earlier]

David Einhorn Roasts Green Mountain’s Accounting

“I believe the available market is smaller than the bulls believe it to be and that Green Mountain has already penetrated a good chunk of it,” Einhorn, president of Greenlight Capital Inc., said today during his so-called “GAAP-uccino” presentation at the Value Investing Congress in New York. “The market is limited,” he said. The company also has a “litany of accounting questions,” Einhorn said, adding that it has reduced transparency and needs to improve disclosure. [BBW]

Here Are the Tax Breaks That Obama Wants Cut to Pay for the Jobs Bill

If you’re in the $200k+ club, a hedge fund manager or corporate jet owner, you won’t be pleased. From Reuters:

— A limit on itemized deductions and certain exemptions on individuals who earn over $200,000 and families who earn over $250,000, which would raise roughly $400 billion over 10 years.

— A proposal to treat carried interest earned by investment fund managers as ordinary income rather than taxing it at capital gains rates, which would raise $18 billion.

— Eliminating certain oil and gas industry tax breaks that would raise $40 billion.

— A change in corporate jet depreciation rules that would raise $3 billion.

Right. Can’t forget the oil companies.

Obama seeks $467 billion in tax changes to fund jobs plan [Reuters]

Obama Gives Corporate Jet Owners, Hedge Fund Managers the Business About Their Taxes

From the press conference that is still going, “I don’t think it’s real radical” to ask corporate jet owners and millionaires to pay higher taxes, Obama said. “No-one wants to see the U.S default.”

And then:

You can’t reduce debt levels without… increasing revenue in some way,” Obama said. “That revenue is coming out of folks who are doing extraordinarily well, and enjoying the lowest tax rates since before I was born. If you are a wealthy CEO or hedge fund manager in America right now, your taxes are lower than they have ever been.”

[via BI, NYT]

New York State Comptroller Candidate Harry Wilson Gets an Above Average Endorsement

Namely Third Point boss Dan Loeb. Sure it’s nice if the Times, Journal, Daily News and the Post all give you the thumbs up but if Dan Loeb goes to the trouble of telling his own investors that you need to be the Empire State’s next top accountant, that’s probably a little better than you could hope for.


So if you would like to see the NYS public pension problem fixed, Loeb implores you to vote for Harry Wilson tomorrow. If you’re okay with “New York [going] the way of Greece” then you should vote for the other guy (his name is Frank DiNapoli).

Courtesy of our former sister from another mister site, Dealbreaker:

Dear Friends,

I have chosen only one candidate to bring to your attention, that is Harry Wilson for Comptroller of NY State. He has recently tied incumbent Democratic candidate Thomas DiNapoli in the polls. For those of you who are Democrats, this is not a matter of party politics but literally one of whether we want New York the go the way of Greece and go bankrupt because, trust me, that is the course we are headed towards without sound fiscal leadership.

Daniel Heninger’s WSJ article lays it all out: “New York, like California and many other once-important states, is sitting on a public- pension debt bomb. If it blows, it will take great swaths of the productive American economy with it for years. Harry Wilson thinks he can defuse the New York bomb. If Harry Wilson can get the public-pension death spiral under control in New York—and he just might have the professional and intellectual tools to do it—it should be possible to reform pensions in any state. That matters. The United States needs a growth rate well above the 2%-something that the Obama years have allowed. That means the people in all 50 states have to be pulling on the oars. They won’t be able to do that if their productive energies are being siphoned into more and yet more taxes that will be demanded— indeed virtually mandated—to pay off these pension obligations. It’s Harry Wilson or the deluge.”

Harry and DiNapoli are neck at 44% and which is why it is vital for you and to vote and to please pass this onto anyone else who is registered to vote in New York.

Dan

Since most New Yorkers have no idea who is running for NYS Comptroller this should at least put a memorable name in your head.

Attention Emerging Hedge Fund Managers: Deloitte Is Ready to Serve You at Your Beck and Call

Fancy yourself a savvy investor? Are you starting a new hedge fund? Need a professional services firm to cater to your every whim so you can concentrate on creating the next shop to be lovingly mocked by our sister from another mister?

SOLUTION: Deloitte’s global full-service hedge fund emerging manager platform. Never heard of it? Of course not! It’s a brand-spanking new platoon in the asset management practice that is just rolling out Project KATN circa now:

“In today’s environment, emerging managers need recognized industry heavyweights for professional services. Deloitte has launched the hedge fund emerging manager platform to provide emerging managers with a solution that offers access to our global network, and customized, creative and responsive service,” said Cary Stier, vice chairman and Deloitte’s U.S. asset management services leader. “If you launch with Deloitte, you stay with Deloitte. A client cannot outgrow our services. Deloitte delivers results that matter.”

And because Deloitte already has “70 percent of U.S. hedge funds with more than $20 billion in assets under management, and 75 percent of global hedge funds with more than $20 billion in assets under management,” they figured that it was about time they started thinking about the little people-cum-hedge fund managers out there. You aren’t going to turn your tiny flagship fund into a behemoth without some help, so why not go with the firm that already schleps for most of the big boys?

So when shopping around for your indentured professional servants budding hedgies, Deloitte’s HFEMP (?) will have you know that they will be there with you every step of the way. From the time you realize your ginormous fortune (pet jungle cats, gold-plated toilets, etc.) to the spectacular implosion (incessant posts by BL, perp walk).

Deloitte’s Asset Management Services Launches Hedge Fund Emerging Manager Platform [PR Newswire]

Accounting News Roundup: Auditors ‘Portray Worrying Lack of Skepticism’; Are Tax Strategies Patentable?; Method Man Pleads Guilty, Cuts Check for NYC Tax Evasion | 06.29.10

FSA accuse auditors of failing to question management bias [Accountancy Age]
The Financial Services Authority has decided that it was about time it called out a few people, “Auditors have become yes men who don’t adequately question management bias according to concerns raised by the UK’s chief financial regulators. The Financial Services Authority (FSA) and the Financial Reporting Council today released a scathing discussion paper into the profession following concerns raised in the wake of the financial crisis. Among its concerns is that auditors ‘portrays a worrying lack of skepticism’ when scrutinising potential management bias.”

Not onlef=”http://www.accountancyage.com/accountancyage/news/2265630/fsa-audit-report-regulator”>FSA wants new enforcement powers including the ability to ” fine, censure or disqualify audit firms.” The FSA also wants to meet with auditors several times a year, rather than just once, as well as direct access to audit committees.

Alex to Become Hurricane as Swells Reach Gulf Spill [Bloomberg]
“Tropical Storm Alex, the first named system of the Atlantic hurricane season, strengthened today, forcing the evacuation of rigs in the Gulf of Mexico and pushing swells toward the worst U.S. oil spill.

The storm, packing maximum sustained winds of 70 miles (110 kilometers) per hour, was 460 miles southeast of Brownsville, Texas, before dawn today, moving north-northwest at 8 mph, the U.S. National Hurricane Center said in an advisory. The circulating winds were near reaching hurricane status of 74 mph.”

New York state may tax out-of-state hedge fund execs [Reuters]
Desperate idea of the day from the brain trust in Albany, “Recession-hit New York could raise an extra $50 million a year by collecting income taxes from people who work for hedge funds in the state but live elsewhere, according to a legislative plan to raise revenue…A spokesman for Democratic Assembly Speaker Sheldon Silver said by telephone on Monday that it means hedge fund managers would be treated the same way as other commuters.”


Aprill: The Impact of Bilski on Tax Strategy Patents [TaxProf Blog]
In non-PCAOB SCOTUS news, the decision in Bilski v. Kappos addressing “Whether a ‘process’ must be tied to a particular machine or apparatus, or transform a particular article into a different state or thing (‘machine-or-transformation’ test), to be eligible for patenting….” was examined by Ellen P. Aprill of Loyola-L.A. regarding the impact on tax strategy patents:

“Bilski is at best a mixed bag for those who think tax strategies should be patentable. It gives little help and does allow business method patents, albeit somewhat begrudgingly. It demonstrates that for those who believe that tax strategies should not be patented, legislation is needed.”

Method Man pleads guilty to NYC tax-evasion charge [AP]
“Hip-hop star Method Man pleaded guilty to a tax-evasion charge Monday, writing a check on the spot for the final $40,000 restitution payment after owing about $106,000.” What, no cash?

U.S. Court to Hear Janus Appeal In Securities Case [Reuters]
“The lawsuit, brought on behalf of those who bought Janus stock from mid-2000 through early September 2003, alleged that the prospectuses of several of Janus funds created the misleading impression that the company would adopt measures to curb market timing, when in fact secret arrangements with several hedge funds permitted such transactions, to the detriment of long-term investors.”