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sam_0534 126 posts  |  Last Activity: Feb 5, 2016 2:04 PM Member since: Feb 8, 1998
  • Operating Performance: Blackstone’s Valuations Rose
    Market Realist By Robert Karr
    48 minutes ago
    
    Blackstone Missed Estimates, Deployed Record Capital in 4Q15

    (Continued from Prior Part)

    Expanding operations
    Blackstone (BX) reported economic income of $436 million for 4Q15. The company’s earnings improved from the quarterly loss in 3Q15. However, the strength was missing like it witnessed in the first quarter. The company’s distributable earnings were $878 million, or $0.72 per unit, in 4Q15—down 23% from the same period last year. The realized performance fees stood at $708 billion in 4Q15.

    Valuations
    Blackstone declared a fourth quarter distribution of $0.61 per common unit payable on February 16, 2016. The company made total distributions of $2.73 per common unit in 2015—up by 29% compared to the previous year. The stock fell by 33% over the past six months due to the expected fall in portfolio holdings. However, the company had its best performing quarter in 1Q15.

    The company is valued at 9.9x on a one-year forward earnings basis—compared to its peers trading at 7.9x. The premium widened marginally over the last quarter due to the company’s perceived outperformance compared to its peers in alternative investment management.

    Blackstone has a dividend yield of 8.5%—compared to its peers with the following dividend yields.

    The Carlyle Group (CG) – 15.7%
    KKR & Co. (KKR) – 9.5%
    Apollo Global Management (APO) – 12.7%
    Focus on performance and innovative offerings
    Blackstone’s focus on the performance of its portfolio companies and constant innovative offerings to its network of limited partners could be important factors in the company’s future performance.

    Diversification through offerings like hedge funds, credit, and advisory could decrease Blackstone investors’ general risk perception. The debt markets should generate returns of 4%–5%. If the equity’s attractiveness rises, the overall perception of alternative asset managers should also rise, especially for the bigger players that are part of the iShares Dow Jones US Financial ETF (IYF). Blackstone saw the bottom in terms of value for its portfolio holdings. The company could benefit from record dry powder, improvement in European equity and debt markets, and domestic equity markets.

  • It pays %10 and I just added 400 shares at 24.60...now have 2,000.. wont buy anymore...I own 2,5000 BX and will keep long term.. BXMT bought alot from GE..

    Sentiment: Buy

  • As Ackman writes:

    As index fund ownership grows as a percentage of shares outstanding, the voting power of index fund managers increases. While on the one hand, one might believe this is good for America as these "permanent" owners should think very long term compared with the many investors whose average holding period is less than one year.

    On the other hand, there are significant drawbacks... While index fund managers are, of course, fiduciaries for their investors, the job of overseeing the governance of the tens of thousands of companies for which they are major shareholders is an incredibly burdensome and almost impossible job. Imagine having to read 20,000 proxy statements which arrive in February and March and having to vote them by May when you have not likely read the annual report, spent little time, if any, with the management or board members, and haven't been schooled in the industries which comprise the index...

    Of course, this is impossible. Index managers are passive and will generally toe the line for management. Ackman points out some very significant long-term effects of this, asking the proverbial question of what happens when index funds effectively control corporate America:

    If the index fund trend continues, and it looks likely to do so, what happens when index funds control Corporate America? Courts have often deemed shareholders to be in control of a corporation with as little as 20% of the ownership of a company. At current rates of asset inflows, it will not be long before index funds effectively control Corporate America and the corporations of many foreign countries.

    The Japanese system of cross corporate ownership, the keiretsu, has been blamed for decades of Japanese corporate underperformance and economic malaise. Large passive ownership of Corporate America by index funds risks a similar outcome without the counterbalancing force of large active investors...

    The thought of corporate America turning Japanese should be enough to make even the biggest proponent of indexing pause for a moment.

    Ackman says that the "greatest threat to index fund asset accumulation is deteriorating absolute returns and underperformance versus actively managed funds" because money flows into these funds with no consideration of value. I agree, and would add that this was the major rationale for the "smart beta" movement.

    But perhaps the greatest takeaway here is simply to not give up on active management. When you invest outside of the mainstream, you will have returns that are outside of the mainstream. That means that there will be plenty of years when you underperform .

    But if you're a good investor, it also means that there will be years where you massive outperform. So keep your chin up. Even hedge fund masters of the universe lose money some years.

    This article first appeared on GuruFocus

  • Reply to

    Yahoo not posting messages???

    by sam_0534 Feb 5, 2016 11:35 AM
    sam_0534 sam_0534 Feb 5, 2016 11:35 AM Flag

    BX owns 15% of ZBH or 30 million shares

  • 06:44 AM EST, 02/05/2016 (MT Newswires) -- Zimmer Biomet(ZBH) , a musculoskeletal product manufacturer, has priced a secondary offering of more than 11 million shares at $96.45 per share.

    The selling stockholders are affiliates of Blackstone Group(BX) and Goldman Sachs(GS) and will receive all proceeds. The offering is expected to close February 10.

    Zimmer said it plans to purchase $250 million of the shares being sold by the selling stockholders. The company will pay a price equal to the weighted average per share purchase price payable by the underwriter to the selling stockholders. Zimmer's purchase will be subject to the closing of the offering,

    Shares of ZBH are at $97.55 within a 52-week range of $88.77 - $121.84.

    Sentiment: Buy

  • sam_0534 by sam_0534 Feb 5, 2016 10:09 AM Flag

    Analyst recommendations
    Of the 47 analysts covering Alibaba (BABA), 42 have given it a “buy” recommendation, none has recommended “sell,” and five have given it a “hold.” The analyst stock price target for the company is $93.50, with a median target estimate of $91.50. Alibaba (BABA) is trading at a discount of 26.7% with respect to its median target.

    Sentiment: Buy

  • Reply to

    Div

    by diannanyhus Feb 4, 2016 8:03 PM
    sam_0534 sam_0534 Feb 5, 2016 1:49 AM Flag

    no

  • Private equity firms such as Blackstone Group LP and KKR & Co. are good investments for both stock buyers and pension funds seeking higher returns, according to Thomas Barrack Jr., founder and chairman of Colony Capital Inc.

    Related Stories

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    KKR's energy chief Lipschultz leaves to start new fund Reuters
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    [$$] Blackstone Gains From Banks’ Financial-Crisis Pain The Wall Street Journal
    Hot Legs: 23 Celebs with Perfect Pairs Of Pins! Starpulse.com Sponsored 
    “Those alternative assets are a buy,” Barrack said Thursday during an interview at the Tiger 21 Conference for high-net-worth investors in Beverly Hills, California. “The market is mistaken in this frothy market that perhaps the fund business is going to suffer. In fact, it’s the opposite.”

    More from Bloomberg.com: Oil Prices Could Jump 50% by the End of 2016

    KKR is down almost 50 percent, Blackstone is off almost 40 percent and Apollo Global Management LLC, a private equity firm headed by Leon Black, has fallen more than 60 percent from their all-time highs. Colony Capital has fallen more than 35 percent since its high last year, before Barrack merged his private equity firm with Colony Finance, a real estate investment trust.

    Investors are nervous about private equity firms, in part, because they don’t understand the holdings, Barrack said.

    “The market is so nervous about what’s in the box,” he said.

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    Over time, he said, private equity investments outperform stocks. Their advantage is established records of sourcing deals, along with managers who have histories of turning around companies, fixing real estate and understanding credit as traditional banks limit lending, according to Barrack.

    More from Bloomberg.com: Goldman Sachs Says It May Be Forced to Fundamentally Question How Capitalism Is Working

    “It’s a better time for curated credit,” he said.

  • 0.61

  • One industry that I think is going to see huge earnings growth for the next several decades is private equity and alternative investing in general. A slow-growth economy creatures tremendous opportunities for them to acquire assets at bargain prices, cut excess spending, create operational efficiencies and resell to the always-hungry public equity markets at a huge profit five years later. They can buy a core company and then do a series of complementary add-on deals to create a larger, more efficient, more profitable enterprise that can then be sold at several times the cost of the parts. The de-risking of banks creates enormous opportunities in credit markets for buyouts, real estate projects and new venture financing. They are going to be one of the few available sources of funds for infrastructure upgrades and they will end up owning a significant percentage of critical infrastructure projects around the world.

    Private equity companies have seen some pretty steep price declines in the past year. The great unload cycle is just about done as they have resold assets they purchased five to six years ago when prices were depressed. Thanks to richly valued public markets, it has been difficult to put capital to work. The capital they have put to work, particularly in the currently depressed energy sector, has fallen further, causing them to take negative marks. This is all going to change as the private equity firms and alternative asset managers will be able to get money to work on very advantageous terms.

    The big four private equity firms -- Apollo (APO), Blackstone (BX), Carlyle (CG) and KKR (KKR) -- are all down big in the past year. Blackstone is the best performer with the stock down just 24%, while the other three are all down more than 40%. They all have generous payout policies and high current yields. If you are willing to take a five- to seven-year private equity mindset, then owning the big four PE firms could lead to very attractive returns for aggressive, patient investors.

    Sentiment: Buy

  • Bids due Feb. 5 -sources

    * Meerwind to fetch about 1.6 bln euros -sources

    * Bidders to include Macquarie, Allianz, MEAG -sources (Adds details of wind park, wind power investment industry)

    By Arno Schuetze, Christoph Steitz and Freya Berry

    FRANKFURT/LONDON, Feb 4 (Reuters) - Infrastructure funds are among the bidders preparing offers for Blackstone's Meerwind Sued/Ost German offshore wind park, three people familiar with the matter told Reuters.

    The bids, which are due on Friday, are expected to value the group at about 1.6 billion euros ($1.8 billion), they added, reflecting a recent spike in interest wind parks.

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    Australian investment group Macquarie, which has emerged as ambitious player in the European offshore wind industry, is among those the sources said were expected to submit offers.

    Other infrastructure funds such as Borealis - part of pension fund OMERS - as well as insurers like Allianz and MEAG, the investment arm of German reinsurer Munich Re are also likely to bid, the sources said.

    Offers are also likely to come from sovereign wealth funds including Chinese investors, which have grown more aggressive in snapping up assets in Germany, they added.

    The 288 megawatt wind park, located 23 kilometres north of the German island of Heligoland, was completed in 2014 and provides electricity for up to 360,000 households.

    It is owned by WindMW, in which Blackstone owns an 80 percent stake, with the remaining stake held by German wind project developer Windland Energieerzeugungs GmbH.

    Windland, Blackstone, their advisers and the potential bidders declined comment or were not immediately available.

    Europe's offshore wind industry has been boosted by a flurry of deals, as risk-averse investors are looking for regulated energy infrastructure with guaranteed returns, including wind parks.

    Jefferies, Bank of America Merrill Lynch and PJT are advising on the sale of the assets, two of the people said.

  • Gecina SA jumped the most since July 2014 in Paris trading after Ivanhoe Cambridge bought shares from affiliates of Blackstone Group LP to become the French office landlord’s biggest shareholder.
    Gecina climbed as much as 4.5 percent and was up 4.1 percent at 112.75 euros as of 10:30 a.m. Ivanhoe Cambridge will own about 23 percent of the company after the transaction, it said in a statement on Friday. The Canadian real estate investor had held about 14.5 million Gecina shares in a venture with Blackstone before the deal was announced.
    “As Gecina’s principal shareholder, we are continuing our participation in the development of one of France’s finest property companies,” Meka Brunel, executive vice president for Europe at Ivanhoe Cambridge, said in the statement.

  • sam_0534 by sam_0534 Feb 1, 2016 4:15 PM Flag

    BX 27.49 +1.22 (+4.64%)
    QUOTES AS OF 03:48:28 PM ET 02/01/2016
    03:37 PM EST, 02/01/2016 (MT Newswires) -- The Blackstone Group L.P(BX) is up nearly 5% after Dow Jones reported the company is seeking buyers for information technology outsourcing firm Pactera, one of its biggest China-based assets.

    The story says Blackstone could get up to $1 billion for Pactera.

    Price: 27.52, Change: +1.25, Percent Change: +4.76

  • great company with ties to BX.. Dividend excellent and I think safe..

    Sentiment: Buy

  • Kitces notes there is a potential return to illiquidity. This is the second way in which investors talk about it. The first way to think about an illiquidity premium is the return one gets by committing to a strategy over the a long-term time horizon. Locking up one’s money over time can lead to higher returns. The Blackstone Group in a research paper talks about how “patient capital” is better able to take advantage of certain opportunities in private companies, real estate and investment strategies.

  • BRIEF-Blackstone funds to sell 2.1 mln Gecina shares - bookrunner
    REUTERS 9:07 AM ET 2/1/2016

    * Gecina accelerated bookbuild launched by Deutsche Bank for Blackstone

    * Gecina will not receive any proceeds from the placing

  • probably will sell some as it is one of the few holdings doing well :(,,, NXPI and HLT are the big holdings and need to go much higher to take some money out... just need time and a better market

  • sam_0534 by sam_0534 Feb 1, 2016 11:01 AM Flag

    Blackstone Shops Chinese Tech Outsourcing Firm Pactera to Potential Buyers
    Sale of Pactera could be worth up to $1 billion
    By RICK CAREW and KANE WU
    Feb. 1, 2016 12:31 a.m. ET
    HONG KONG—U.S. private-equity firm Blackstone Group LP is shopping one of its biggest assets in China, information technology outsourcing firm Pactera Technology International Ltd., for up to $1 billion, according to people familiar with the situation.

  • sam_0534 sam_0534 Jan 28, 2016 3:51 PM Flag

    I have checked the FDA site and I’m unable to confirm when Amneal actually filed the ANDA for this. If you can locate that info it would help. Sorry, but I don’t have time to chase all this down.

    Regards, Domenic

  • Blackstone's Record Dividend Means $700M for Schwarzman -- Market Talk
    DOW JONES & COMPANY, INC. 6:10 AM ET 1/28/2016
    9:10 ET - Blackstone's (BX) 61c dividend in 4Q brings the firm's full-year 2015 payout to a record $2.73 per share. That should translate to more than $700M for BX co-founder, CEO and top shareholder Stephen Schwarzman, who owns roughly 20% of the firm's stock. Schwarzman's shares in 2014 paid him $570.5M on BX's previous high of $2.12 paid to common shareholders, and $2.46 paid to owners, such as Schwarzman, of special units which payout out slightly more for tax reasons. The precise dividend that partnership units pay for 2015 won't be disclosed until BX files its annual report in the next month

CXW
29.27-0.57(-1.91%)Feb 5 4:04 PMEST