Apparently, hedge funds are so toxic in Alameda that just throwing the word around is enough to qualify as in depth criticism of the Alameda Point Revitalization initiative. The question at Alameda Point is whether or not there will be money to build the projects, and it seems that Hedge Fund money is unacceptable, unlike traditional multinational investment money like Lehman Brothers.
D.E. Shaw, the financial partner involved in the Alameda Point Revitalization project, has routinely been one of the top performing hedge funds over the last tumultuous years, and hasn’t gone under, threatened bankruptcy, etc. No bailout here. So the undefined attack on the source of the money seems strange.
Which brings us to the latest gaffe from Action Alameda (and trust me, they have been gaffe-a-rific over the last couple of weeks). This is the website that defines news as “anything that anybody doesn’t want somebody to know.” Now that’s laugh out loud funny!
Their lead weekend head line was “DE Shaw Real Estate Deal in Florida in Foreclosure” running under the “Save Our City! Alameda” which apparently is their “we’re just making stuff up” category. The story is that D.E. Shaw is a financial backer of Metro Development (one of many backers) and that Metro has over 9,000 homes in foreclosure. But a cursory Google search on the issue shows this isn’t true. (But what is truth when you can quote out of context). From Tampa Bay Online story on the issue:
Metro was rolling in money. The company had revolving lines of credit from five different banks to the tune of $175 million, and it had just formed a joint venture with D.E. Shaw Co., one of the world’s largest hedge funds, that backed the Lennar and M/I deals with $250 million.
While the projects purchased with the Shaw backing are still solvent, everything else Metro touched has fallen apart.
The Shaw projects are not in foreclosure. But just like when Action Alameda/Save Our City! Alameda write about the Oak Knoll project, they leave out key, important information that actually makes the story the exact opposite of what it is.
Good stuff…Action Alameda is giving the Alameda Daily Noose a run for it’s money these days.