Hedge Fund Meltdown Pressuring Luxury Goods Market

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 |  Includes: AGR-OLD, COH, ELY, GS, HOG, MS, MTN, RTL, TLB
by: Research Recap

Audit Integrity has compiled a list of companies catering to the affluent that it thinks are at most risk as a result of the meltdown of hedge funds.

In 2008, hedge funds lost $350 billion globally. “It would not surprise us if an additional $750 billion evaporates over the next 12 months,” Audit Integrity says.

This financial meltdown has significant impact on the future of hedge funds and their prime brokers, and will also impact the spending patterns of the affluent.

The four companies catering to the affluent that have the highest corporate responsibility risk are Harley Davidson (NYSE: HOG), Morgan Stanley (NYSE: MS), Goldman Sachs (NYSE: GS), and Talbots (NYSE: TLB) Other famous names with high Accounting & Governance Risk (AGR-OLD) ratings include Coach (NYSE: COH) and Tiffany (NYSE: TIF). Standard & Poor’s downgraded Harley’s debt to BBB+ on Jan 16.

Exposed companies that have more conservative ratings and therefore are at lesser risk in Audit Integrity’s view includeRoyal Caribbean (NYSE: RTL) , Vail Resorts (NYSE: MTN) and Callaway Golf(NYSE ELY).

Click here for the full list.