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BlyBlyBabes

How about a hedge fund investment?

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I don''t understand hedge funds and the like Bly, but your link got me thinking [^o)] Southampton and Coventry are still at risk for the dreaded administration. Maybe a couple of others are too. Could other clubs points deductions be our saviour this season? [:^)]

 

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[quote user="nutty nigel"]

I don''t understand hedge funds and the like Bly, but your link got me thinking [^o)] Southampton and Coventry are still at risk for the dreaded administration. Maybe a couple of others are too. Could other clubs points deductions be our saviour this season? [:^)

[/quote]

Me neither Nutty, but I understand they''re a bit of a gamble only suitable for rich people. Like....

A very risky long shot there Nigel. I''d rather get in Paul Ince and trust him to kick enough backsides to achieve his dreams - might be a bit of a gamble, but hey it''s not such a long shot.

Jewell or Bruce would be nice, but I think they''d need money this board can''t (read won''t) provide to finance their methods. They are the safe bets for me.

How did I get so off track. Hedge funds?

Ah well.

OTBC

P.S .You''ll note I''m in mourning pending a certain event.

 

 

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My understanding of hedge funds is that the investor is effectuvely betting on a stock to drop in price.

 

An analogy - say for example i am sure house prices will fall, i can try to make money from this knowledge by finding a house owner and renting his house from him for an agreed period, say 6 months. I immediately sell the house and bank the money. I then wait for 6 months and when it comes to returning the house to it''s owner i can now buy it back for less cash then i sold it for (assuming i was correct and house prices HAVE fallen). i then return the house and keep the profit.

 

I might be wrong, maybe more business savvy peeps could confirm?

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i do not think this viable. . . . it would involve a hell of a lot of risk / investment for the fund. Based on 25 players??????

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I work extensively with many hedge funds, and provide consultancy to them.  I know a lot of these guys well.  The explanation given earlier is when they short a stock, however this is just one example.  Different funds have different ways of making money.  They are merely pools of money that the managers use to make more!

This is the most important part!!  Different hedge funds do hundreds of different strategies to make cash, but it is ALL about making money!  They clearly see Deep Value in Southampton, that I cannot see!  Everyone knows a chamionship club does not make money, they must be planning to spend serious cash (dont get carried away, it will be borrowed) get in the Premier League and sell up!  They are after maximum profit, thats there interest, unless they are a front for someone!!

They are a business not a labour of love!  Look at Sloane Robinson (i think it was) at Arsenal, just bought shares, waited till value rose and sold!

 

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As i understand it, Hedge funds are there to make an investment and then realise a profit from it. With a football club there are probably only two ways to make a profit, either build a succesful football team and get them into the Premier league for a few seasons at least OR.....sell off all the assets (players or land and buildings) and make a profit that way!

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[quote user="gissing canary"]

I work extensively with many hedge funds, and provide consultancy to them.  I know a lot of these guys well.  The explanation given earlier is when they short a stock, however this is just one example.  Different funds have different ways of making money.  They are merely pools of money that the managers use to make more!

This is the most important part!!  Different hedge funds do hundreds of different strategies to make cash, but it is ALL about making money!  They clearly see Deep Value in Southampton, that I cannot see!  Everyone knows a chamionship club does not make money, they must be planning to spend serious cash (dont get carried away, it will be borrowed) get in the Premier League and sell up!  They are after maximum profit, thats there interest, unless they are a front for someone!!

They are a business not a labour of love!  Look at Sloane Robinson (i think it was) at Arsenal, just bought shares, waited till value rose and sold!

 

[/quote]

Thats a pretty perfect explanation GC. Hedge funds have no aim other than making money, usually by "asset stripping" but also occasionally by actually installing a new management team that improves company performance (or even both). The one thing I would add is that they usually want to make their money in a very short time span.

I also cannot see what value they perceive in Southampton unless they can get them into the Prem. Only thing that comes to mind as a possibility is the sale and leaseback of the ground which could potentially raise millions.

Mark .Y.

 

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You don''t wan hedge funds owning the club, ever. Like people have said before they are solely a way of making money. I think they are generally all about effectively hiding people''s money from tax, or making money by avoiding banking regulation etc. Someone would be able to clear that up better than me. Anyways the point is hedge funds do not care much about football. They will look at a club and it''s assests i.e. ground, staff, players, facilities and see if there is potential to make money from them.Now contarary to what somebody said, Southampton do have a LOT of assests. They have many young players, a new stadium, a good youth system. What was touched on in the article is the youth system. The hedge fund will effectively look to use this system and coupled with some investment to get in the premiership and effecively "do a chase" and fire-sell all their young player like bale was sold.I can''t 100% say that would happen but it is likely that in the end they will fire-sell if they have to to make money. Be wary of them, they don''t share the same interests as fans do.

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