Madison Street Capital’s CEO Charles Botchway Thinks The $20.7 Billion Pulled from Hedge Funds Recently May Be Premature

In the second quarter of 2016, hedge fund investors yanked $20.7 billion from hedge funds. That move represents one of the largest drawdowns in hedge fund history. But according to some hedge fund managers, that move may have been premature. The performance of hedge funds rebounded in July 2016. So far, the 2016 year-to-date total is an increase of 3.29 percent, according to Madison Street Capital’s Chief Executive Officer, Charles Botchway. Botchway said the eVestment Hedge Fund Performance Report published those figures.

 

 

Hedge fund managers have been under the gun since the beginning of 2016 because of their poor performance in 2015. But investors in Madison Street Capital’s hedge fund have experienced more consistent gains that some of the larger hedge funds. According to eVestment, the total value of assets in hedge fund accounts is more than $2.9 trillion. In spite of the recent exit by some investors, other investors are still allocating money to the funds that performed better than the average in 2015. One of those funds is Madison Street Capital’s hedge fund.

 

Hedge fund assets dropped below $3 trillion for the first time since May 2014. Commodity strategies are still very active, according to Mr. Botchway and managed futures continue to be the favorite of some hedge fund investors. Redemptions from credit strategies accounted for the dip in assets in July 2016. But interest in commodity funds is still strong, according to Botchway. The current investor dissatisfaction is not new. A similar trend developed in late-2011 from the losses incurred by the European Union’s Greek situation. But during the years between 2010 and 2014, investors allocated more money to credit funds than ever before. Hedge funds will have to adjust to the changes that are taking place in China and Europe, according to Botchway. There may be more hedge funds closing because the global economy is on the verge of a meltdown, according to some economists.

 

 

 

Madison Street Capital is known for being a leader in accounting and financial analysis. The firm also specializes in mergers and acquisitions and debt reorganization. Chief Operating Officer Anthony Marsala has contributed to the success of Madison Street Capital over the last eleven years. Charles Botchway, the Chief Executive Officer, is considered a reputable hedge fund manager that is cautious when it comes to taking risks. He carefully analyzes all risks. Botchway recently announced that Tony Marsala was nominated by the National Association of Certified Valuators and Analysts (NACV) for his visionary strategies, his pioneering achievements, his leadership and his incredible track record in the merger and acquisition industry. Marsala was one of the finalists in 2015, 40 Under Forty Recognition Program that NACV supports every year.

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Kyle Bass: The Attention Seeking Economic Gambler

“Investors beware, the information being given is not reliable and might doom your business if followed!” That would be my first when is see Kyle Bass on the tv or his picture on a newspaper with an article about his new business prediction. For some time now Kyle Bass has been appearing on the media offering bad and short-sighted financial advice. Investors and close followers of economics were once fooled into believing that the Hayman Capital Management founder and chief executive officer was an excellent financial analyst. This was back then in 2008 when Kyle Bass and his Dallas-based hedge fund management firm, Hayman Capital, made a killing after correctly predicting the subprime mortgage crisis that year. He and his firm went ahead to purchase properties seized by the bank after its owners suffered from the crisis and made a huge profit by reselling them later. This move also gave him a chance to sink it to the fame he accrued from his lucky success and took it to the media as an economic analyst.

It seems his well of luck had run dry, as every economic analysis, he gave turned out to be fake and unreliable as his predictions never came to pass. It was one prediction and analysis gone wrong after another prediction and analysis gone wrong. Any sane economic analyst would withdraw from the media, go back to his drawing board and come up with new strategies. Kyle Bass kept on presenting himself to media platforms to give economic analysis. In fact, his frequency of appearance increased with every wrong prediction he gave. Kyle Bass was flying too close to the sun and his “waxed wings” had started to melt. From time to time, he started receiving sharp criticism due to his bad economic advice, but he went on.

He boldly stood against another well-known analyst who was famous for their correct predictions and argued out that the European economy would crash. Of course, it did not, I wonder how Kyle Bass felt after that.

Then came his biggest fall that clearly portrayed him as a real economic gambler who has been cheating investors with his bad economic advice, the Argentina crisis. When the new government took office, the economically illiterate Argentinian despot Cristina Fernández de Kirchner was dedicated to bringing new economic policies to the people of Argentina. This was the biggest mistake ever made in the history of Argentina’s economy. Before the results of the poor economic policies began to manifest and the country’s economy crumble, Kyle Bass stood against other economic analysts and praised the despot and her policies.

Private Equity Investments and Investment Mogul Stephen P. Murray

CCMP Capital is a private equity company that specializes in equity growth and buyout investments in Europe and North America. The name of the firm ‘CCMP’ is a reflection of the heritage of the organization, standing for Chemical ventures, Chase capital, Manufactures, and Partnerships. The company has strong proprietary operating resources, which combined with their industry experience drive the firm to operational efficiency and growth. The firm’s operations as an independent entity commenced in 2006 ten months after it was establishment. It was founded to perpetuate successful investment strategies created and implemented by the professionals of the firm, partners of J.P. Morgan and its predecessors.

The company invests from $100 to $500 million worth on Wall Street of equity in each transaction in any firm worth $300 million to $2 billion. In doing so, CCMP Capital helps to develop and grow the business, fund their over levered financial structures, take the public firms private, and enable corporate and management carve-outs and buyouts respectively. In addition, it diversifies estate solutions, particularly in firms owned by the founders.

The company has invested significant amount of time and money in these sectors. It prides in deep understanding of the issues, opportunities and challenges in these sectors and has become a firm of choice amongst the consumers on pehub. In retail sector, the company has invested over $7 billion in subsectors such as multichannel marketing, specialty retail, mass channel supply, and service business. In industrial sector, CCMP has over $4 billion worth of investments in place. The industrial sectors have the following subsectors, manufacturing, industrial, and distribution services.

In the healthcare industry, which hosts specialty products firms, managed care payers, health care service provides, and medical product distributors, CCMP has invested $2 billion. In addition, it boasts of three decades of experience in the sector. Lastly, CCMP has invested $2.7 billion in energy companies and has over two decades of experience in the later. The energy sector has subsectors including power, oilfield, production, midstream, and exploration.

Prominent Private Equity Investor

Private equity investment industry is one of the leading sectors in the investment space. Some successful private equity investors include as Stephen P. Murray, who was also the former president and Chief Executive Officer of the CCMP Capital. Murray attended Boston College where he graduated with a degree in economy in 1984. He enrolled for master’s degree specializing in Business Administration from Columbia school of business. He joined credit analysis program in 1984 at Hanover Corporation. He later became part of MH Equity Corporation. Murray also served in board of directors of major firms such as AMC Entertainment, Aramark, and the Vitamin Shoppe among others.