"Does anyone need an aspirin?"--Representative Henry Hyde (R-Ill.), chairman of the House Judiciary CommittEe, as Democrats groaned over an overly long impeachment hearing with Ken StarrEDITED BY ROBERT McNATTReturn to top
MORGAN STANLEY: THE RAPTURE
SAYS GARY PARR, Morgan Stanley Dean Witter's co-head of mergers and acquisitions: "I don't want to look like I'm beating my chest." He's recalling the investment bank's extraordinary involvement on Nov. 23, when nine big mergers hit the market. Well, Gary, it's O.K. to brag a little. In one record day, Morgan helped close five of those transactions. The deals totaled $26 billion. So what's it all mean to Morgan?
A lot. By the end of that day, the market value of Morgan's stock jumped by $1.8 billion, to $42.5 billion, as its shares gained over $3, closing at 73 5/8. Then there was an estimated $100 million in fees from the deals. Says Richard Peterson, market strategist at Securities Data: "It was an early Thanksgiving."
The rebound in merger activity didn't surprise Parr: "We were pretty confident that once the market stabilized, merger activity would come back." So investment bankers are once again looking at healthy bonuses.EDITED BY ROBERT McNATTReturn to top
Merger Monday at Morgan
BUYER/TARGET ESTIMATED FEE
DEUTSCHE BANK/BANKERS TRUST $48.5
AMERICA ONLINE/NETSCAPE 14.0
B.F. GOODRICH/COLTEC 7.0
DAY'S TOTAL 101.2
Morgan Stanley represented the seller in all cases except Deutsche-BT. Fees
are estimated by Securities Data from historic data provided by Morgan
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THIS TIGER IS LIMPING
WHAT A DIFFERENCE A MONTH MAKES. Julian Robertson Jr.'s $20 billion hedge-fund group, Tiger Management, was up 17% (after fees) through Sept. 30, while U.S. markets slumped. That was among the best performances of the large "macro" hedge funds that bet on moves in the global markets. But in just a few weeks, the Dow has come charging back, while the tiger has lost its roar.
Robertson's offshore Jaguar Fund, which mirrors the performance of Tiger's other funds, has been pummeled, in part by a bet on the dollar against the yen, which has been on the upswing. Jaguar fell 18% in October, and declined an additional 4% in November's first three weeks. For the year to date, Jaguar is down 8.1%, vs. a gain of 20.4% for the S&P 500.
Generally, macro hedge funds also outdid Jaguar. The Hennessee Group Macro Index was down just 2.15% in October. Leon Cooperman's Omega fund, for example, gained 0.5% in October, and George Soros' Quantum Fund fell 6.5%.
Moreover, fund watchers say these funds will generally report better numbers in November. One fund consultant noted that Quantum has been betting on the dollar and is also heavily invested in the U.S. market.EDITED BY ROBERT McNATTReturn to top