Why Pension Funds Are Hooked on Private Equity
When President Obama unveiled his budget last Wednesday, it rekindled a debate over taxation of the private equity industry. Many executives in the private equity business (as well as the venture capital and hedge fund businesses) pay the capital gains rate on their earnings rather than the higher rate paid on ordinary income. Even though these industries make most of their money from the appreciation of assets — the definition of “capital gains” — the President, and many others, believe it is unfair that employees of these funds are able to pay the capital gains rate. After all, these execs are getting paid to manage these funds, not for risking their own capital. Of course, the private equity industry isn’t going to take such a tax hike lying down. According to Politico, the Private Equity Growth Capital Council recently sent a white paper to the House Ways and Means Committeer extolling the benefits of private equity for America’s pension funds. According to the paper: “Since ...
america
appreciation
business
capital
committeer
council
definition
equity
evidence
house
investment
journal
obama
pension
politico
preqin
president
street
taxation
wall
Stocks Rise Sharply, Led by Gains in Technology
(NEW YORK) — Technology stocks roared back Wednesday, driving the Standard & Poor’s 500 and Dow Jones industrial average to record highs. The industry has lagged the broader market this year, but surged after network communication company Adtran reported earnings that were double what Wall Street analysts expected. That boosted optimism that businesses will increase spending on technology equipment. Chipmakers Micron and Intel jumped, as did other network equipment makers like Cisco and JDS Uniphase. Stocks were also up on an optimistic reading of the Federal Reserve Bank’s latest minutes. Technology stocks rose 1.8 percent, the most of the 10 industry groups in the S&P. That’s a big change from tech’s weak performance this year. The group is up just 4.7 percent, trailing the S&P’s gain of 11.3 percent. “Tech has performed so poorly, it’s oversold and warrants some interest here,” said Scott Wren, a senior equity strategist at Wells Fargo Advisors. “If the economy ...
adtran
advisors
brian
business
cetera
chipmakers
cisco
communications
confidence
dow jones
equipment
equity
fargo
fed
federal reserve
gendreau
group
intel
jds
micron
nasdaq
optimism
performance
policy
scott
standard
strategists
street
technology
uniphase
wall
wells
wren
york
S&P 500 Closes at a Record High, Beating ’07 Mark
(NEW YORK) — For the second time in less than a month, the American stock market marched past another milepost on its long, turbulent journey back from the Great Recession, toppling another record left over from the days before government bailouts and failing investment banks. The Standard & Poor’s 500 closed at a new high Thursday, three weeks after another popular market gauge, the Dow Jones industrial average, obliterated its own closing record. The reaction on Wall Street was muted — more of a dull buzz than a victory cry. Investors warned clients not to get overly excited. “Getting back to where we were is an important step,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. But he cautioned in a note to investors: “Markets are volatile, and if you are a long-term investor you should expect declines.” The S&P rose six points to 1,569, a gain of 0.4 percent, beating by four points its previous record of 1,565.15 set on Oct. 9, 2007. The index is still ...
american
business
dow jones
government
howard
indices
investment
mark
million
oct
performance
reaction
recession
silverblatt
standard
street
wall
york
Exclusive: Cerberus seeks to bankroll investor landlords
NEW YORK - Private equity firm Cerberus Capital Management wants to provide financing to small investment firms that are buying foreclosed homes as part of a long-term bullish bet on the housing recovery, according to four sources familiar with the situation.
capital
cerberus
equity
exclusive
investment
management
situation
york
Found 1 month ago on channel
Reuters
U.S. Stocks Fall on Cyprus Bailout
(NEW YORK) — Stocks fell for a second day on Wall Street on concern that a proposed bank bailout for the Mediterranean island nation of Cyprus could cause the euro crisis to flare up again. The Dow Jones industrial average was down 39 points, or 0.3 percent, to 14,472 as of 11 a.m. EDT. The Dow fell as much as 110 points in the early going, before recouping some of its loss. The Standard & Poor’s 500 index fell eight points, or 0.5 percent, to 1,552. The Nasdaq composite dropped 17 points, or 0.5 percent, to 3,232. Cyprus is proposing a hefty levy on bank deposits as a condition for a national bailout. The proposal roiled international markets and the measures are stoking fears of bank runs in the other 16 nations that use the euro. Concerns persist about the euro-region’s lingering debt crisis, despite a strong rally in stocks since the start of the year that pushed the Dow to record highs. The index fell 1.6 percent Feb. 25, its biggest wobble this year, after elections in ...
citigroup
conditions
cyprus
dow jones
edt
election
europe
evidence
feb
federal reserve
goldman sachs
investment
italy
landesman
mediterranean
morgan stanley
nasdaq
nation
partners
persist
standard
street
uri
wall
york