Friday's Headlines: Even managers of bottom-ranking hedge funds saw sweet payouts
Hedge funds lagged the stock market last year, yet managers of even the poorest performing funds took home handsome pay packages, according to the New York Times. Case in point: the head of D.E. Shaw saw a 2010 payday of $275 million, even though his firm's biggest fund returned a lousy 2.45%.
The Times quotes one hedge fund investor: "So many of these guys are killing it on the management fees. You can't feel good giving 30% of your returns to some guy who was up single digits. That has to give you indigestion."
Subprime mortgages are back in fashion with long-term investors. [WSJ]
Generations X and Y find it hard to connect with advisers. [Investment News]
A joint venture between Mitsubishi UFJ Financial and Morgan Stanley is expected to report a loss of $956 million bond trading. [WSJ]
Lazard says the market can support a lending facility of up to $50 billion for high investment-grade corporate buyers. [Reuters]
Nasdaq OMX and ICE made a hostile play for NYSE Euronext to out bid Deutsche Boerse by 19%. [Dealbook]
RBS expects to triple its private banking assets to $3 billion in India over the next four to five years. [Bloomberg]
BlackRock hired former Blackstone executive Edwin Conway to head its $1.1 trillion U.S. and Canadian institutional businesses. [Investment News]
Blackstone was the winner in the highly competitive sale of the $116 million leasehold for Manhattan's 1140 Sixth Avenue building. [The Real Deal]
Foreign banks tapped the Fed's secret lifeline the most at the crisis peak; Wachovia topped U.S. banks. [BusinessWeek]