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The recent market tumult can be attributed to the rapid unwinding of popular trades and the heavy use of leverage by investors. These trades, which included bets on the Japanese yen, complex cryptocurrency wagers, and investments in hot tech companies, generated windfall profits as markets rose. However, as global markets became unsettled, investors began retreating from these trades, leading to losses and a process of deleveraging. The summer months, when many traders and investors are on vacation, exacerbated the situation, and the volatility was also influenced by a slowing U.S. economy. [Extracted from the article]

Sharmin Mossavar-Rahmani, the chief investment officer of Goldman Sachs Wealth Management, remains skeptical of cryptocurrencies despite their recent surge in value. She compares the current enthusiasm for crypto to the tulip mania of the 1600s and argues that cryptocurrencies cannot be accurately valued since they do not produce earnings, cash flow, or dividends. Mossavar-Rahmani's skepticism is influenced by her belief in the rule of law and her appreciation for the role of government institutions. While some financial advisers and Wall Street giants have embraced bitcoin, Mossavar-Rahmani's clients have not expressed interest in investing in crypto. [Extracted from the article]

Experts such as JPMorgan Chief Executive Jamie Dimon and Bridgewater Associates founder Ray Dalio predicted an economic disaster for the U.S. economy, including a debt crisis and recession. However, their predictions were proven wrong as the impact of government stimulus and the resilience of consumers and businesses helped the economy continue to grow, with inflation getting closer to the Federal Reserve's goal and unemployment remaining low. While some experts believe the economy has avoided a recession, others still anticipate difficulties ahead, such as a drop in the stock market and challenges related to government debt. Dimon remains concerned about issues such as inflation, geopolitical upheaval, and rising government spending and debt. [Extracted from the article]

Jim Chanos, a well-known short seller, is closing down his hedge funds after nearly four decades. Chanos has made a career out of betting against overpriced or fraudulent companies, including successful bets against Enron and unsuccessful campaigns against Tesla and AOL. However, in recent years, Chanos has struggled to turn his pessimistic positions into profits, and his firm now manages less than $200 million, down from $6 billion in 2008. Chanos plans to return most of his investors' cash by the end of the year and will focus on advisory and research work for select clients. [Extracted from the article]

Leder, kwexclusive, Trusts/Funds/Financial Vehicles, wsjfinance-ws, Financial Investment Services, Alternative Investments, Financial Services, Hedge Funds, Portfolio/Fund/Asset Management, Investing/Securities Keywords: leder; wsjfinance-ws; kwexclusive; Trusts/Funds/Financial Vehicles; Financial Investment Services; Portfolio/Fund/Asset Management; Alternative Investments; Financial Services; Hedge Funds; Investing/Securities EN leder wsjfinance-ws kwexclusive Trusts/Funds/Financial Vehicles Financial Investment Services Portfolio/Fund/Asset Management Alternative Investments Financial Services Hedge Funds Investing/Securities N.PAG N.PAG 1 10/04/23 20230930 NES 230930 Hedge fund Third Point, after years of strong returns, has registered big losses after misreading the market. Advertisement Loeb, who began his career as a junk-bond salesman catering to investors including hedge-fund titan and current-Carolina Panthers owner David Tepper, launched Third Point in 1995. [Extracted from the article]

To eliminate nearly half of its debt, HCR ManorCare Inc. will sell real-estate assets to real-estate investment trust HCP for $6.1 billion. HRC, which provides nursing-home and posthospital-care services, will lease back the real estate from HCP.

Despite a series of failed investments in the auto sector, gains from mortgage- and corporate-bonds trading have served to restore Cerberus Capital Management L.P.'s earnings and investors' confidence in the firm.

Investor John Paulson, through his investment firm Paulson & Co., will launch a fund to invest in gold-related shares and derivatives. At the present, Paulson & Co. has more than 10% of its $30 billion under management in gold-related investments.

Byline: GREGORY ZUCKERMAN Lately, T. Boone Pickens would get better marks as a policy advocate and author than an energy investor. The 80-year-old Texas oil magnate has bankrolled a massive [...]

Yahoo Inc. has rejected a joint proposal from Microsoft Corp. and investor Carl Icahn through which Microsoft would acquire Yahoo's online-search business and the rest of the company would remain under Icahn's control after the removal of Yahoo's CEO Jerry Yang and board of directors. Microsoft rejected Yahoo's counteroffer to sell the entire company for at least $33 per share, and to renegotiate terms for the sale of Yahoo's online-search unit.

Investor Carl Icahn's proposal to oust Yahoo Inc.'s board of directors has gained support by Microsoft Corp.'s offer to renew negotiations to acquire part or all of Yahoo if the company replaces its board. Article discusses Yahoo's upcoming shareholder meeting, relations with investors, stock value, and likelihood of resumed talks with Microsoft.

Byline: GREGORY ZUCKERMAN The stock market is battered and beaten - but also at attractive levels by some metrics. Despite that, a sustained rebound may be months away. Soaring energy [...]

In a letter to Yahoo Inc.'s board of directors, shareholder Carl Icahn states Yahoo should sell itself to Microsoft Corp. for $34.375 a share, an estimated $49.5 billion. Article discusses recent failed acquisition negotiations between Yahoo and Microsoft, possibility for renewed talks, and Yahoo's strained relations with shareholders.

After buying 10 million Yahoo shares and acquiring options to buy 49 million more, investor Carl Icahn has filed a proxy slate to replace Yahoo Inc.'s entire board of directors. Article discusses the likelihood of the slate's success, and possible renewed merger negotiations with Microsoft if the measure goes through.

Investor Carl Icahn has acquired an estimated 50 million Yahoo Inc. shares and is expected to launch a proxy contest to change part of Yahoo's board of directors. Article discusses possible executive changes, Yahoo's stock value, and prospects for renewed merger negotiations between Yahoo and Microsoft Corp.

Byline: GREGORY ZUCKERMAN AND KEVIN J. DELANEY; WALL STREET JOURNAL STAFF Billionaire investor Carl Icahn is leaning toward launching a proxy contest to unseat at least part of Yahoo Inc.'s [...]

Funds manager Ospraie Management LLC announces it will buy ConAgra Foods Inc.'s commodities-trading unit for $2.1 billion. Article discusses the current stability of the commodities sector, commodity prices, and the expected effects of the sale on ConAgra's stock value and funding.

UK hedge fund management firm Peloton Partners L.L.P., founded by former Goldman Sachs Group Inc. partners Geoffrey Grant and Ron Beller in 2005, has had to shut down one fund and close the other to redemptions by investors due to significant losses resulting from the mortgage investment crisis.

UK hedge fund Richmond Capital Partners L.L.P. dropped more than 50% during January 2008; in December 2007 it had $524 mil in assets. The hedge fund, launched by trader Luca Bechis, follows what is known as a long-short strategy.

Full-year earnings for UK-based hedge fund GLG Partners Inc. totaled $24.6 bil, with $6.1 bil added during 2007. Investors shifted $30.5 bil assets to GLG during the fourth quarter.

Byline: GREG IP AND GREGORY ZUCKERMAN; WALL STREET JOURNAL STAFF Former U.S. Federal Reserve Board chairman Alan Greenspan, whom some blame for fuelling a housing bubble, is signing on as [...]

Byline: GREGORY ZUCKERMAN, SERENA NG AND CARRICK MOLLENKAMP Last month, central banks worked overtime to ensure credit markets were flush with enough cash to operate smoothly. In many ways they [...]