The mega investors – Where a lot of money is earned part 2/3

Because of their renitents professional investors like so-called „alternative investments“. Under it exotic arrangements fall like halls of residence, parking bays­, mobile radio towers or railroad lines. Also the often scolded Hedgefonds are fed primarily on investment money from pension cashes like CalPERS. The pension fund for employees of the civil service in California looks after the money of 1.6 million members and is worldwide biggest of his kind.

Hedgefonds should gain no three-place yields for CalPERS und Co. Mostly the monetary managers promise one-digit annual yields – indeed, no matter what happens in the stock market or Bond market. And also wild gambling is nothing for assurances and pension cashes: Legal and internal regulations demand an extensive check before every big investment decision. Also the risk control seems to function with the traditional great investors better.

Burnt milliards

The Chinese state fund must not slave at regular payment China investment corporation (CIC). His problem are rather too big influxes. Monetary reserves of China grew during the last years in 2.1 billions US dollar. A large part of the sum lies in low-paid interest state loans. Three years ago the Chinese government founded the CIC with the aim to gain more yield. In the end of 2009 fund manager Lou Jiwei administered 332 milliard dollars. He is valid as one of the mightiest monetary governors worldwide, already in 2008 the „time of magazines chose him“ to one of 100 most high-powered people of the world.

The 59-year-old professional politician Lou had been before an acting Minister of Finance of China. The practical know-how in the matter of investment should contribute his right hand and chief investor Gao Xiqing. Gao studied law in the USA and worked with the New York office Mudge rose Guthrie Alexander & Ferdon whose main focus Company coalescences and Company takeovers are.

Indeed, are the first results of the communist-capitalistic ­ duet grow through. In May, 2007 invested CIC three milliard dollars in the American ­ private equity company Black­ stone Group and acquired a portion of nine percent. Four months later the fund paid five milliard dollars for a 9.9-percent package to Morgan Stanley, the second largest US-investment bank to Goldman Sachs. However, in the course of the financial crisis both positions fell. Lou came under fire in China.

However, this did not keep him ­ from investing further in the Who’s who of the American economy­: Whether at the electronics group Apple, to the retail trade giant Johnson & Johnson, to the property administrator BlackRock, to the banks bank of America and Citigroup or Coca Cola – CIC has acquired everywhere significant share shares.

This raises questions after the political motives. In talking Lou and premier of China assure of Whom Jiabao over and over again that CIC operates independently and the decisions were based on the result potential of the shares. „I must earn money. If I do not create this, I do not get over the job“, explained Lou in the world bank conference ­ 2,5 years ago.

At the height of the financial crisis few doubts, the money insisted in the USA of China or the Middle East where the majority of the state funds sits to accept. Milliard sums flowed into the crippleded US banks, stabilised the fragile financial system. Thus, for example, Kuweit pumped three milliard dollars into the Citigroup. But also these investments were not always crowned by success. When the investment arm of Singapore, the Temasek holding company, the value of the participation in Merrill Lynch and Barclays had to decline on account of the course fall, the leadership team was chucked out in high curve. The Asian town state straightened his fund anew. Alike Abu Dhabi investment Authority with a too early entrance with the Citi­ group has burnt itself the fingers.

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