Fastest Way To Wreck a Company ...

[Heisenberg]

... the head guy buys a sports team.
(through November the S&P 500 was up 27%)

-----

WSJ News Exclusive | Distressed-Asset Hedge Funds Run Into Trouble
https://www.wsj.com/articles/distressed-asset-hedge-funds-run-into-trouble-11577107801?mod=searchresults&page=1&pos=1

Hedge-fund firms York Capital Management and Southpaw Asset Management are barring clients from getting back all of the money they have requested for year-end, a sign of the pressure that investors in distressed assets are facing.

York, founded by Milwaukee Bucks co-owner Jamie Dinan, told clients in a letter Thursday it was suspending redemptions from its nearly $2 billion Credit Opportunities fund for the year-end period and that it planned to start unwinding the fund.

The fund is run by co-chief investment officer William Vrattos and was down 8% for the year through November, said people familiar with the matter.

[Pakuni]

It was a real shame to watch the Home Depot go belly up after Arthur Blank bought the Falcons.

[JWags85]

It was a real shame to watch the Home Depot go belly up after Arthur Blank bought the Falcons.

And how Ares Management imploded after Tony Ressler bought the Hawks...

Virtu Financial didn't continue to grow like gangbusters and go public after Vincent Viola bought the Florida Panthers, it surely fell off a cliff.

Dinon isn't even a majority owner of the Bucks.  Lasry's Avenue Capital is still thriving and recently opened another half a billion fund and last I checked, Edens and Fortress aren't falling apart.

Typical clickbait schlock cause a fund manager who deals in credit, not equities like the S&P, is having drawdowns.

[rocket surgeon]

how can anything be down any % this year?

[The Sultan]

how can anything be down any % this year?

Because it's a hedge fund specializing in distressed assets.

[wadesworld]

We're selling our Apple stock, right?

[jesmu84]

how can anything be down any % this year?

Wages certainly aren't up any significant amount.

[Heisenberg]

It was a real shame to watch the Home Depot go belly up after Arthur Blank bought the Falcons.

Blank stepped down from the board of Home Depot in 2001 and bought the Falcons the next year (2002). He has not been involved in running HD for 19 years.

Nice try

And how Ares Management imploded after Tony Ressler bought the Hawks...

Virtu Financial didn't continue to grow like gangbusters and go public after Vincent Viola bought the Florida Panthers, it surely fell off a cliff.

Dinon isn't even a majority owner of the Bucks.  Lasry's Avenue Capital is still thriving and recently opened another half a billion fund and last I checked, Edens and Fortress aren't falling apart.

Typical clickbait schlock cause a fund manager who deals in credit, not equities like the S&P, is having drawdowns.

I give you Ares, has done well since Ressler bought the Hawks.  Score one for you.

Viola bought the Panthers in October 2015.  Since Vitru is up 5% while the S&P is up 69% over the same period.  POS since he got involved in Hockey.

Lasry (bought the Bucks in 2014) had to close his hedge fund a year later because it was awful
https://www.cnbc.com/2015/11/10/avenue-capital-closing-its-original-hedge-fund.html

It has largely been a crap show since. (Lasry is rumoured to be the inspiration of KGB in Rounders.  He travels the world looking for high stakes poker games).

Fortress sucked badly from 2014 until it was acquited by Softbank, the same company that is reeling from Wework.  Softbank ownership is now toxic.

In other words you guys gave me one good example and three outright disasters to say I was wrong. You wound up making my case better than me ... good job!

And I'll bring up Ballmer.  The best thing that ever happened to Microsoft in the last two decades was Ballmer buying Clippers and leaving Microsoft.  Getting him out of there made them relevant again.

And what I said has been known for decades.  Here is a 1997 article saying companies go south when the owner buys a sports team.

https://www.wsj.com/articles/SB852585653426181000

It is actually simple, buying a sports team means you lost interest in your business.  Its performance reflects that reality.  So, not hard to understand.

[The Sultan]

The problem is that distressed asset hedge funds are doing poorly overall. Really doubt it has anything to do with the Bucks owner being distracted. Hey but keep doing you Heisey.

I mean if a 22 year old article says it, it most certainly holds true!

[Heisenberg]

The problem is that distressed asset hedge funds are doing poorly overall. Really doubt it has anything to do with the Bucks owner being distracted. Hey but keep doing you Heisey.

I mean if a 22 year old article says it, it most certainly holds true!

It was true 22 years ago and it has not changed.

But hey, keep bending yourself into a pretzel trying to say Lasry is still a good investor.  He was good, he sucks now. 

(The bulk of his net worth is now the Bucks and he is one of those Democrat donor billionaires that Warren slammed last week ... bet he has a wine cave too.)

[JWags85]

Lasry (bought the Bucks in 2014) had to close his hedge fund a year later because it was awful
https://www.cnbc.com/2015/11/10/avenue-capital-closing-its-original-hedge-fund.html

It has largely been a crap show since. (Lasry is rumoured to be the inspiration of KGB in Rounders.  He travels the world looking for high stakes poker games).

Slick edit to take out the fact that you had the wrong company all together.  And individual funds close all the damn time.  Avenue Capital as a collection of hedge funds has $15B+ AUM and is one of the largest hedge funds in the world.  Not exactly withering on the vine.

Fortress sucked badly from 2014 until it was acquited by Softbank, the same company that is reeling from Wework.  Softbank ownership is now toxic.

Fortress is not a one man show.  Edens heads up the PE branch which has been very successful.  Including a monster return on Springleaf Financial headed up by him during and after his ownership began.  Not to mention wise and fruitful investments in eSports.

Your initial article link was misguided and lacking in proper context for your point and now you've used that to start layering on different arguments.  Very Cheeks of you.

[Heisenberg]

Next on this list of disasters ... David Tepper, his hedge fund Apposola has also been awful since he spent more time with the Carolina Panthers.

And Steve Ross (Dolphins), Woody Johnson (Jets) and John Henry (Red Soxs) have all seen their primary businesses tank since they got into sports.  They are still billionaires because their net worth is now their teams.

Again, my point is when a billionaire buys a team, his primary business is toast.  He lost interest in it and flounders.

What they should do is what Cuban, Tom Ricketts, and Blank did ... step down from their business dealings and realize they are now in a new business, running their sports team, and leave everything else in the past.  Too hard for these big egos.

[Heisenberg]

Slick edit to take out the fact that you had the wrong company all together.  And individual funds close all the damn time.  Avenue Capital as a collection of hedge funds has $15B+ AUM and is one of the largest hedge funds in the world.  Not exactly withering on the vine.

Fortress is not a one man show.  Edens heads up the PE branch which has been very successful.  Including a monster return on Springleaf Financial headed up by him during and after his ownership began.  Not to mention wise and fruitful investments in eSports.

Your initial article link was misguided and lacking in proper context for your point and now you've used that to start layering on different arguments.  Very Cheeks of you.

These have all been poorly run investment businesses.  Eden's esports ventures are part of his pivot to his new career, running sports team. 

And, for the third time, their legacy businesses are what flounders. I did not say, nor did I imply that everything they do flounders.  That is you standing on your head to try and argue that I'm wrong.

[The Sultan]

It was true 22 years ago and it has not changed.

But hey, keep bending yourself into a pretzel trying to say Lasry is still a good investor.  He was good, he sucks now. 

(The bulk of his net worth is now the Bucks and he is one of those Democrat donor billionaires that Warren slammed last week ... bet he has a wine cave too.)

I'm not bending anything. Per usual you are mistaking correlation for causation. And you've shown your bias in the meantime.

Yet another topic in which not to take you seriously.

[Heisenberg]

I'm not bending anything. Per usual you are mistaking correlation for causation. And you've shown your bias in the meantime.

Yet another topic in which not to take you seriously.

Your apology for being wrong has been accepted.

[real chili 83]

Jesus, in before the lock.

[Pakuni]

Sigh ...

Flex-N-Gate stock is up 93 percent since Shahid Khan bought the Jacksonville Jaguars.

[Uncle Rico]

Beyond thrilled to have Wes Edens and Marc Lasry in Milwaukee as the owners of the Bucks

[Pakuni]

Allegis Group, owned by Baltimore Ravens owner Steve Biscotti, has seen its revenues grow 113 percent over the past decade.

[The Sultan]

It's like clockwork.

Heisey produces some theory he thinks is profound...only to be shot down in 12 hours.

[Pakuni]

Alibaba Group stock is up 24 percent since Joseph Tsai bought the Nets.

[Pakuni]

Platinum Equities revenues are up 20 percent since Tom Gores bought the Pistons.

[tower912]

Shifting goalposts and ever more far-fetched defenses getting ramped up.

[Pakuni]

Ubiquiti Inc stock is up 1,335 percent since Robert Pera bought the Grizzlies.

And with that, I bid Heisey adieu (and accept his apology for being wrong).

[Jockey]

Jesus, in before the lock.

Who is more annoying on Scoop? Chico or Heisy. 2 trolls from the same mother?