Discussion in 'Wall St. News' started by Enfinity, Nov 22, 2005.

  1. Buffett may lose $34-mil on Value Capita hedge fund
    Value Capital LP, a $570 million hedge fund backed by billionaire investor Warren Buffett, may report an annual loss for the first time in seven years after making a bad bet on U.S. interest rates. The miscalculation cost Buffett's Berkshire Hathaway (86,800,-1200,BRK) $34 million before taxes in the first nine months of 2005, according to a Nov. 4 filing with the SEC. Berkshire Hathaway had $3.4 billion in net income over the same period. Mark Byrne, who runs Value Capital, said he erred by anticipating that long-term borrowing costs would rise faster than short-term rates as the U.S. economy strengthened. Instead, the gap between 2-year and 10-year bond yields narrowed by more than 1 percentage point to the smallest since January 2001, as the Federal Reserve raised the overnight bank lending rate 12 times.
  2. Arnie


    The Bozo from Nebraska wrong? Say it ain't so!!

  3. keyser1


    The bozo from nebraska wasn't wrong in this case, the guy running the fund was.

    but even if he was, big deal.
  4. cable


    And wasn't Buffett Arnold Schwarzenegger's financial advisor in the last election? I thought you guys were buddies.
  5. cakulev


    Had he not made such a grave mistake he would have 3.434 billion in net income! :eek: :D
  6. Why dumbdown the magician?
    USD Bulls should pat his shoulders and say:
    please do more magician tricks, especially the one where you pull out a rat from your hat instead of a rabbit!
  7. Daal


    So what, he can get that amount on his piggy bank