Readings: Infrastructure investments, Top hedge fund trades, Infrastructure bubble?
- Hindu Business Line: India Inc pours 81% of Q3 investments into infrastructure
Over 81% of the overall planned private investments of Rs 4,19,334 crore ($104 billion) by India Inc in the third quarter of the current fiscal have been poured into core, physical and service infrastructure.
. . . while steel, with an investment of Rs 1,23,700 crore, remained the single largest source of investment generation, other industries attracting substantial capital expenditure included oil (Rs 62,850 crore), power (Rs 54,144 crore), telecom (Rs 33,080 crore), real estate (Rs 24,848 crore), cement (Rs 19,200 crore), shipping and logistics (Rs 11,536 crore), ports (Rs 10,750 crore) and aviation (Rs 1,200 crore).
- Dow Jones: The Big 10: Top Hedge Fund Trades of 2007
Among the top hedge fund trades were two deals by Atticus Management, which resulted in a collective profit of nearly $1.2 billion for the firm. All told, the “Big 10″ hedge fund trades garnered profits of more than $3 billion for their respective investors.
Top Trade #4: Union Pacific, Other U.S. Railroads
Firm: Atticus Management
Profit: $387 million
A counterintuitive bet in a sector that typically slows down as an economic cycle peaks paid off handsomely for Timothy Barakett’s shop. On top of paper and actual gains, Atticus made more than $20 million in dividend earnings on its railroad holdings.
- Portfolio.com: Why Infrastructure isn’t a Bubble
Roane puts a figure of $160 billion in infrastructure investment funds raised over the past two years; that compares to $53 trillion in needed infrastructure investment over the next 25 years. Annualize both numbers, and you have $80 billion a year in private funds chasing $2.1 trillion a year in opportunities. No matter how much leverage you add to those private funds - and all that leverage counts as infrastructure investment as well, remember - you’re not even getting close to the point at which too much money is chasing too few opportunities.
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