Author Topic: JEF - Jefferies Group  (Read 599199 times)

rogermunibond

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Re: JEF - Jefferies Group
« Reply #840 on: August 08, 2014, 09:06:35 AM »
I've never dealt with them (meaning Cummings and Steinberg) but they have generally been good at distressed investing (look at the total return from the Fortescue loan).  What's hurt them is offloading some of their investing portfolio to Ackman, Wintergreen, and some other hedgies.  They had a terrible return from the Ackman side car for transforming Target.  One would assume they did DD on Ackman but sheesh.


scorpioncapital

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Re: JEF - Jefferies Group
« Reply #841 on: August 08, 2014, 09:42:30 AM »
They're at it again - offloading investments to other managers. Even in the latest press release handler says they have given the money to funds and managers they have great confidence in their investing abilities.

racemize

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Re: JEF - Jefferies Group
« Reply #842 on: August 08, 2014, 09:45:27 AM »
They're at it again - offloading investments to other managers. Even in the latest press release handler says they have given the money to funds and managers they have great confidence in their investing abilities.

Aren't they buying in at the manager level, rather than as clients though?

scorpioncapital

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Re: JEF - Jefferies Group
« Reply #843 on: August 08, 2014, 10:16:43 AM »
they said they invested 461m in liquid securities managed by focused investment managers so it sounds more like their previous activity but not entirely sure what they are buying.

jay21

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Re: JEF - Jefferies Group
« Reply #844 on: August 08, 2014, 10:27:07 AM »
they said they invested 461m in liquid securities managed by focused investment managers so it sounds more like their previous activity but not entirely sure what they are buying.

Can you post the link?  I missed this.  Thanks
@jay_21_

thepupil

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Re: JEF - Jefferies Group
« Reply #845 on: August 08, 2014, 10:36:58 AM »
We invested a further $332.5 million in our Leucadia Asset Management platform, including a follow-on investment in Topwater Capital, a new investment with Mazama Capital Management and an initial investment in the Global Equity Events Opportunity Fund, which historically was part of Jefferies. At June 30, 2014, total capital invested in our asset management affiliates and associates was $461.5 million. Almost all of this represents seed capital invested in liquid securities managed by focused investment teams in which we have significant confidence. We expect a reasonable return on our invested capital and to earn an incremental return from our participation in the results of the related management companies.

http://seekingalpha.com/pr/10706945-leucadia-national-corporation-announces-second-quarter-2014-results

BG2008

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Re: JEF - Jefferies Group
« Reply #846 on: August 08, 2014, 11:17:36 AM »
This was during the fairfax shareholder meeting.   There's likely no link to it.   You just have to be there.  Richie is a riot and hilarious.  He insinuates that Fairfax in essence gave him a rectal probe with the DD they did.

Has anyone here dealt with Leucadia in a professional capacity?  Given that they are savvy investors, does that make them tough negotiators.  Any reputation on whether they are pleasant people to work with?  I find it interesting that the CEO of the Bank of Ireland said that he never wanted to go through another DD process with Fairfax again.  I get the sense that these firms are shareholder friendly, but not necessarily friendly with counterparties.  Thoughts?

Thanks for the post. Do you have a link to those comments by the CEO of BOI? I'd be curious to hear more.

txlaw

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Re: JEF - Jefferies Group
« Reply #847 on: August 08, 2014, 11:20:57 AM »
We invested a further $332.5 million in our Leucadia Asset Management platform, including a follow-on investment in Topwater Capital, a new investment with Mazama Capital Management and an initial investment in the Global Equity Events Opportunity Fund, which historically was part of Jefferies. At June 30, 2014, total capital invested in our asset management affiliates and associates was $461.5 million. Almost all of this represents seed capital invested in liquid securities managed by focused investment teams in which we have significant confidence. We expect a reasonable return on our invested capital and to earn an incremental return from our participation in the results of the related management companies.

http://seekingalpha.com/pr/10706945-leucadia-national-corporation-announces-second-quarter-2014-results

I've been thinking about this a bit, and I have to say I'm getting more and more uncomfortable with all these seed capital deals.  Obviously, distributing capital to different managers didn't work out too well last time, and I'm not so sure investing in the management firms mitigates the potential downside risks.

I'm also not too crazy about this "reasonable return" + "incremental return" business.  What exactly are their target returns here?

Grenville

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Re: JEF - Jefferies Group
« Reply #848 on: August 08, 2014, 11:54:56 AM »
This was during the fairfax shareholder meeting.   There's likely no link to it.   You just have to be there.  Richie is a riot and hilarious.  He insinuates that Fairfax in essence gave him a rectal probe with the DD they did.

Has anyone here dealt with Leucadia in a professional capacity?  Given that they are savvy investors, does that make them tough negotiators.  Any reputation on whether they are pleasant people to work with?  I find it interesting that the CEO of the Bank of Ireland said that he never wanted to go through another DD process with Fairfax again.  I get the sense that these firms are shareholder friendly, but not necessarily friendly with counterparties.  Thoughts?

Thanks for the post. Do you have a link to those comments by the CEO of BOI? I'd be curious to hear more.

Thanks for the color!

stevevri

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Re: JEF - Jefferies Group
« Reply #849 on: August 08, 2014, 12:06:11 PM »

I've been thinking about this a bit, and I have to say I'm getting more and more uncomfortable with all these seed capital deals.  Obviously, distributing capital to different managers didn't work out too well last time, and I'm not so sure investing in the management firms mitigates the potential downside risks.

I'm also not too crazy about this "reasonable return" + "incremental return" business.  What exactly are their target returns here?

If you looked at Leucadia as a concentrated bet on Jefferies and investment banking and then saw this as a continuation of those activities as opposed to with a lens towards the past how would you view this?