Thursday, 12 June 2008 05:00

Name brand investing in the WSJ

Reading through the journal, I came across the following chart and thought, "Hey, I shorted all of those companies last year. Thanks guys!":


Among the many disastrous bets made on struggling financial institutions, here are some of the worst whoppers:
Buyer/Company Deal Terms Status
Citigroup/Old Lane Partners Acquired in July 2007 for nearly $800 million Citigroup plans to shut down the hedge fund
Bank of America/Countrywide Financial Bought stake last August with an $18-a-share conversion price Mortgage lender's stock now trading at $4.77; BofA is buying the company
Joseph Lewis/Bear Stearns British billionaire spent $1.1 billion building a roughly 9.6% stake at prices near $100 a share Bear sold to J.P. Morgan Chase for $10 a share
Abu Dhabi Investment Authority/Citigroup $7.5 billion infusion in November 2007 gave ADIA convertible stock Citigroup shares plunged 35% since then
Warburg Pincus/MBIA Private-equity firm agreed in December to buy $500 million in stock for $31 a share Bond insurer's shares now at $4.91

Reference my post on reliance on name brands, we are all wrong some of the time.

Last modified on Thursday, 12 June 2008 05:00