Filed under: Boys Toys
Predictable I know. However, I am going on a trip to Canada this week and have found a Lamborghini garage where the owner is my new best friend. He is moving to Geneva soon and I aim to have him on my Christmas list as soon as possible. Not just because he is a nice chap, but also because he owns one of every model of Lamborghini ever made and that, my friend, is an awesome reason to visit his new house every weekend until I can do the same…
I give you, as the toy of the week… the Lamborghini Murcielago Roadster… you know you want one..
It howls past 60mph in less than 3.6s and goes on to a top speed of 200mph, slightly less than the coupe due to the messed-up aerodynamics of the chop top. It doesn’t need a detailed explanation of in-gear acceleration, other than to say it could scorch the skin off your face.
The Audi-sourced V12 generates 479lb/ft of torque, it’s got pace to burn and needs replacement tyres for the 18×13 inch rear wheels €1000 a pop every 7000km. If there was ever a time when this seemed like a reasonable bill, this might be it.
Driving it
Find a clear road and light the touch paper and the rear wheels spin momentarily before the car blasts down the road with all the aggression and purpose of a serial killer on the run.
The engine note hardens to one of the best sounds in motoring, the speedo races round to illegal speeds and the scenery races past the window at a bullet-train rate. Push hard on the throttle and prepare to hang on. It’s an emotional experience driving a Lamborghini in full flight and having driven one through the tunnel on Park Lane I can tell you that I didn’t know whether to laugh or cry… I think I did both..
Filed under: Hedge Funds
The Business Magazine had an article today that proposes that the hedge fund industry bubble is about to burst because the funds are now investing in football clubs.”There comes a point in the development of many industries – as there does in the lives of many individuals – where fabulous wealth starts to crowd out common sense” the magazine said.
I can understand their logic, I am a Leeds United fan after all. For all you non football followers and those of you who call it ’soccer’, Leeds United are a tragic story of financial investments gone bad.
The club spent millions and millions trying to win the premier league and to gain revenue from the European Champions league. They reached the semi finals 6 six years ago and then promptly started an almost straight line down the divisions. Today they are in ‘league one’ two divisions below the premiership and have survived administration and bankruptcy. Following £90 million of debt.
The club had all sort of financial instruments in play to buy players that would have looked more like a hedge fund hand book than a football club trying to buy players.
When all these financing instruments started to unravel it became a nightmare scenario where players were bought for £10mn sold for £5mn and the club still had the obligations of wages and the debt… for a Leeds supporter it was a nightmare.
Does this mean that hedge funds are complete fools for investing in clubs? Like any business, it depends which club and it depends on how much money you have.
Newcastle, Southampton and other hedgies choices are hardly the glamor clubs and for them to compete with the best of Europe (the Champions league is where the money is) then they will need to spend vast amounts of money. You only have to look at Mr Abramovich who a few years ago bought Chelsea, poured £250mn in and still hasn’t won the champions league… If someone with a personal wealth of £15bn and money to burn without the requirement for a return can’t do it, I would be a worried investor if my fund started investing in Football clubs.
“Investing in football clubs is usually what rich men do when they’ve made their fortune. It is how they spend their money, not how they make it. If the hedge funds cannot see that, they are running out of the most precious of all commodities – common sense” I have to agree with Business Magazine on this, I love football but buying a club could very much be paralleled with Branson’s comments on how to become a millionaire, he said “First become a billionaire and then buy an airline”
Replace ‘airline’ with ‘football club’ and you have some very sage advice for hedgies dabbling in this marketplace… a sign that the hedge fund market ‘bubble’ is about to burst…. cobblers…. just a sign that some managers may be getting a little over confident, but when has been sensible ever been applied to the hedge fund industry?
