dntee

Why a Goldman Sachs Hedge Fund Investment Might Look Attractive

Your analysis is incorrect...the high water mark you refer to is applicable only to the old investors already in the fund; the high water mark for new incoming investors is the NAV/share when they invested (ie current NAV/share) - the mechanics are sometimes accomplished through payment for equalization credits. If the fund performs say 10% from the current NAV/share, then the new investors will pay 2% of that appreciation, whereas the old investors do not pay until the high water mark applicable to them is achived.

Your error is in thinking that performance fees are calculated at the fund level, when in reality they are calculated at the investor level.

Risky Business: Hedge Funds Can Freeze Redemptions

As long as its in the PPM/OM and hence the investor has agreed as a condition of his investment, the Investment Manager has the ability to suspend redemptions or impose redemption gates.

Disney Acquires Penguin: Ridiculous

"...But it only generates gross revenues of $5.00 per subscriber, which is only $3.5 million. That's only a 1% yield assuming there are no expenses..."

IIRC $5.00 is the monthly ARPU (you can ck the site for the rates), so the runrate reveunes would be $42mm. I was under the impression that projected revenues are $65 million in 2007 with $35 million in profit....think a 10x current P/E would be EPS accrettive, no? Even if you assume the deal winds up at $700mm that's still only a 20x current P/E.

Freedom Acquisition Holdings & Regulators: How I Learned To Stop Worrying...

There is a very meaningful difference between making investment decisions for outside money vs investing your own principal capital....esp since what is being listed is the management company and not the fund itself.