Real talk on Bobby Flay, the Isle of Man and Steven Cohen

Jul 18 2017 | 7:31pm ET

Real talk on Bobby Flay, the Isle of Man and Steven Cohen

Today we discuss the next terrible restaurant IPO, we question why anyone would invest in a fund on the Isle of man, and we salute Steven Cohen’s healthcare project for veterans.

Quotes of the Day:

“The burger bubble has officially popped.”

That’s Stephen Gandel at Bloomberg.

It looks like we’re going to get a serving of yet another questionable IPO very soon.

Gandel calls the plan to bring Bobby Flay’s fast-casual chain, Bobby's Burger Palace, a subprime IPO.

That’s probably putting it nicely given the current state of the restaurant industry.

In next month’s issue, we ask a few damning questions about the state of the restaurant industry.

Most notably, the aggressive expansion goals that simply don’t add up mathematically of more than a dozen public companies, all trading at lofty valuations. Private equity companies have been loading up companies with debt, talking big games about restaurant expansion (in some cases as high as 1,028% for burger chains), and then unloading stock alongside insiders not long after the debut.

in the wake of this year’s Snap Inc. and Blue Apron IPOs, anyone who thinks that Bobby Flay is going to cook them up big returns is eating too much of their own product.

They should just cancel this right now.

Be sure to check out Modern Trader in August.

“Legal opinion as stated by lawyers from both New York and the Isle of Man is that the default is by no means certain. Surely, the regulator cannot sit back and do nothing while claiming to be protecting the interests of shareholders.”

Isle of Man-based Quadris Environmental Fund is in default.

So says an American hedge fund. Now, with bank accounts on ice, roughly 1,200 investors are wondering if they’ll be able to receive even pennies on the dollar.

They were aware that money was being housed on the Isle of Man… right?

They were aware that this fund was investing primarily in teak plantations, right?

Was there any risk management at all?

"When people call the clinic, we can offer an appointment within a week, so there's not really a wait time."

That’s Doctor Amy Williams, an employee at the Cohen Veterans Network.

At a time that the Veterans Affairs continues to be a shining example of the problem with government-operated healthcare, Steven Cohen’s agency is proving to offer a solution to steep wait times and costs for retired soldiers.

The network provides free clinics that are funded by private donors. Williams goes on to explain that it isn’t just the soldiers who receive care. So too do their families.

This isn’t meant to turn into a discussion into the value of private competition. For now, let’s tip our cap to Cohen’s team, which includes Admiral Michael Mullen, USN (Retired), former U.S. Senator Joseph Lieberman, and Eric Weingartner from the Robin Hood Foundation.

For more information on the clinics and how to participate, go here.


Tuesday Hedge Fund Reading List

FINalternatives: A&P Emerging Managers Index Down -0.29% in June; +5.07% In First Half

Harvard Business Review: The Answer to Short-Termism Isn’t Asking Investors to Be Patient

ValueWalk: Despite Strong Bull Market, Many Activist Short Sellers Deliver Big Returns

DealBook: Struggles at Procter & Gamble Draw Scrutiny of Nelson Peltz

Prudent Money: This Is a Sign - Greed Is Good

Grab the Newsletter:

The Daily Alpha is published on FINalternatives.

Signup here for the daily FINalternatives Newsletter, which includes the Daily Alpha. 

Follow @FINalternatives  Be sure to check out the award-winning Modern Trader and a very special offer for first-time readers and follow @moderntradermag. You can also pick up a copy of the June Hedge Fund issue at Barnes & Noble.

Garrett Baldwin is the voice of the The Daily Alpha, the features editor for Modern Trader magazine, and the author of The Man with The Big Red Balloon.

In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...