|
|
PIPEs record year signals caution for investors
From Reuters.com: Hedge funds and other deep pocketed investors seeking high returns are placing their bets on a controversial financing tool popular with distressed companies. But they're piling in just when yields on these so-called PIPEs -- private investments in public equity -- are plunging amid regulatory threats and a stalling market for small cap companies. "It's big year for PIPE issuances but not necessarily returns," said Brett Goetschius, editor of industry newsletter The PIPEs Report.
...PIPE returns, estimated to have been as high as 30 percent in recent years, may have dropped to half that level this year, Goetschius said, thanks to a slump in small-cap energy and biotech stocks. U.S. regulators are also threatening to constrain PIPE investment practices that can involve questionable short-selling tactics. Full article: Source
Opalesque Exclusive: PIPE FoF
In New York, I met with the principals of a PIPE fund of fund, who gave me an interesting update on this segment. First, their fund, going since February 2003, has a convincing track record. 28.76% in 2003, 13.85% in 2004, 12.23% in 2005 and 8.80% in 2006 (through September). The fund had only four down months (one of which was -0.01%, ...................... To view our full article Click here
|
|