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More Business Woes For Louis Bacon?

The Clifton Review

The Clifton Review is a bi-weekly column that examines the question of the Clifton project along with the evolution of the war between two billionaires, the links to unsavory characters, the use of the courts for personal agendas, the involvement of a political party, and the attacks on the Government of The Bahamas.

We covered the start of this war with articles describing the battle over easement rights, the mysterious burning of a home, the blocks to rebuilding, and countless questionable court filings. This series of articles asks the needed questions and presents the arguments in full.

More Business Woes For Louis Bacon?

By P.J. Malone

It appears that hedge-fund billionaire Louis Bacon of the Clifton saga fame is losing his touch in business. As Bacon ferociously fights fashion mogul Peter Nygard, Bacon’s business is suffering. His company, Moore Capital Management, is still experiencing business woes.

First the company reportedly reduced the fees they charge clients; then they laid off 30 employees; now they are divesting interest in a company that is underperforming.

As previously written, Moore Capital Management was started by Louis Moore Bacon as a private ‘investment management’ company.

Financial guru Warren Buffett describes investment as “… the process of laying out money now to receive more money in the future.”

 

Well, apparently, the money that Moore Capital is ‘laying out now’, in some cases, is not resulting in the company ‘receiving money in the future’.

In a nutshell, an investment management company would take its clients’ money and look for ways to invest it that would produce a profit at the end of the day. These ways of investing include things like stocks, bonds, mutual funds and other investment vehicles.

The investor looks at companies that they think may do well business wise and purchases stocks in those companies. So, you have to really pick the right investments in order to be successful.

As it turns out, the U.S. stock markets are doing well overall. They are being described as experiencing a ‘rally’—“A rally is a period of sustained increases in the prices of stocks, bonds or indexes,” as described by Investopedia.com.

But, not so for Moore Capital Management. According to reports filed, Bacon’s business seems not to be making the gains that the stock market is generally, and specific picks of theirs have underperformed.

Not to get to deep into the weeds, but according to latest reports, a stock that Bacon has been investing in over several months is ‘down trending’ and underperformed the S&P500 by 28.96%.

Here’s the challenge for Bacon. If his investments are loosing money, or not gaining a high enough percentage, it doesn’t make his clients very happy. They are likely to withdraw their money from his company, especially if the stock market overall is making money while Bacon’s picks are not making money at the same levels.

With the stock market making gains and Moore Capital not so much, it creates the impression that the investors at Moore Capital Management are not making very good decisions.

Nobody likes to lose money. So if Moore Capital Management cannot get it together, they may continue their downward spiral.

Do you think Bacon is distracted by his personal vendetta against fashion mogul Peter Nygard? Do you think this big mess Bacon has created in The Bahamas with the Clifton saga and the machinations of Save The Bays is taking up too much of his time? Or, could his business challenges be retribution or his ‘just deserts’ for his diabolical acts?

Like we said before, ‘God don’t like ugly.’

 

Written by Jones Bahamas

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