Alternative Thinking on Jim Chanos’ Warning, Ratter’s Change of Heart, and American Psycho

April 28, 2016 11:39 AM

“The bottom line is, hedge fund herding is not going away anytime soon. If anything, we are now seeing the early signs that this type of hedge fund herding is spilling over into herding of large institutional investors. To the extent that that spillover grows and expands, then we will be concerned.”

The New York Times dives into the aftermath of Valeant’s shakeup and the impact of the stock’s 90% slump on the idea of herding.

It’s a good read since it offers some detail on an issue you might know

It explains how James Chanos presented Valeant as a short in 2014… and Ackman ignored the insight after reaching out to obtain Chanos’ research. 

How about that?


“Steve no longer has any interest in what he first applied for more than three years ago.”

Steve Rattner will not be returning to Wall Street.

We addressed the SEC’s decision to let Rattner accept a gig with an affiliate of Guggenheim Securities, it turns out that Rattner is more than happy with his current day job.

And it’s great work if you have the connections…

Since 2010, Rattner has been managing the family fortune of former New York mayor and sugar police captain Michael R. Bloomberg at Willett Advisors.

What did Rattner do again that got him barred by the SEC in the first place?

Oh, that’s right a kickback scheme.

Rattner – Obama’s Car Czar – personally settled for $6.2 million…  almost as much as his firm did.

Of course, he didn’t have to admit or deny any wrongdoing… since the SEC and the politically connected hold no one accountable…. ever.


“"We believe the acquisition of Stemcentrx will strengthen and accelerate our ability to deliver innovative therapies that will have a remarkable impact on patients' lives."

Silicon Valley is back on the air on HBO, and each show reminds us of the great Peter Thiel.

The first season’s character Peter Gregory – who engages in one of the funniest research dives ever to determine risks on sesame seeds – has been compared to Thiel.

Just if you were wondering where Thiel has been recently, a firm that he backs Stemcentrx just sold to AbbVie for more than $5 billion. The firm manufacturers a late-stage cancer drug.

He’s really good at things… so here’s his Four Rules for building a great business.

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About the Author

Garrett Baldwin is the Managing Editor of the Alpha Pages and the Features Editor of Modern Trader. An author and Baltimore native, he earned a BS in journalism from the Medill School at Northwestern University, an MA in Economic Policy (Security Studies) from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University.