T. Boone Pickens
T. Boone Pickens | Hedge Fund Manager Notes
As part of our Hedge Fund Tracker Tool here are a few resources related to T. Boone Pickens, the billionaire oil tycoon hedge fund manager.
Resource #1: Pickens on CNBC (11.2.08) Oilman and energy investor T. Boone Pickens confirmed Thursday that his energy-focused hedge fund, BP Capital, has moved its assets out of the stock market and into cash.
"We're out of the market and have been for several weeks," Pickens said on CNBC. "We've had major redemptions" from investors that will leave BP Capital with about $500 million once those withdrawals are finalized Friday.
The Wall Street Journal reported Tuesday that Pickens wrote BP Capital investors about two weeks ago, saying he would let them make immediate early withdrawals, because the fund had moved into cash. About half of the investors asked to withdraw.
Pickens said last Sunday on CBS's "60 Minutes" that he and Dallas-based BP Capital, of which he's the chief executive, have lost $2 billion since late June, mainly due to volatility in energy prices. Pickens is estimated to personally hold 20% of the fund following the withdrawals, or about $100 million.
Saying he's come back from major losses before, Pickens predicted Thursday that BP Capital will return to the value it had in 2005.
"I want to see a little more of the market before we move back in again. We're not going to be in any rush," he said. Source
Resource #2: Boone Pickens Owns Oklahoma State University's Athletics Program
Oklahoma State University has this odd relationship with billionaire oil tycoon T. Boone Pickens. To be specific, T. Boone sort of owns the athletic program lock, stock, and barrel in a way that only Phil Knight at Oregon can really rival, having given the university $165 million that ballooned to $300 million dollars at the peak of its value.
One wrinkle, though: the donation was left in a hedge fund by Pickens, who insisted on a loan for the purchase of the materials for improvements to Lewis Field and other athletic buildings on the Stillwater campus, which totaled around $200 million. The money in the hedge fund -- swollen by massive global oil prices -- was used as collateral. Early warning signs last week pointed to a reduction in the value of the money making all of this borrowing possible, but now the situation may be far, far worse: the entire donated sum may have been eaten up by cratering oil prices and inept line calls made by T. Boone's fund managers.
Officials were told that actually, the entire $ 165 million donation, and the earnings, which once inflated the gift to over $300 million, had recently been eliminated by margin calls due to drastically falling oil prices.100% Injury Rate wonders if a university has ever declared bankruptcy, but that seems drastic. Remember that the really wealthy never go broke, they just "manage illiquid financial situations through proactive partnership with investors and capital solutions" or if you like English, they "borrow more money" or "sell stuff." Pickens himself is still worth a huge amount of money even in a bearish oil market, and could probably bail out the university's liability on the loan by himself. Source
As of Monday OSU's gift had flat-lined completely and was declared 'gone.'
Resource #3: BP Capital Management Holdings Analysis
Resource #4: Coming soon...