Lazard - Blog Posts

Lazard Global Total Return and Income Fund (LGI)

Lazard Global Total Return and Income Fund ( LGI ) will begin trading ex-dividend on December 10, 2013. A cash dividend payment of $0.09073 per share is scheduled to be paid on December 23, 2013. Shareholders who purchased LGI stock prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 12th quarter that LGI has paid the same dividend. At the current stock price of $16.86, the dividend yield is 6.46%.

The previous trading day's last sale of LGI was $16.86, representing a -6.8% decrease from the 52 week high of $18.09 and a 15.48% increase over the 52 week low of $14.60.

For more information on the declaration, record and payment dates, visit the LGI Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.

Original Article Here

Lazard hits a 52 week high

by Zacks Equity Research

November 19, 2013

Shares of Lazard Ltd. reached a new 52-week high, touching $41.66 at the second half of the trading session on Nov 18. However, the stock closed the session at $41.26, which reflects a solid year-to-date return of 34.7%.The trading volume for the session was 0.5 million shares. Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 12.0%. Growth Drivers Impressive third-quarter 2013 results comprising a positive earnings surprise of 31.64%, top-line growth, a strong capital position and higher assets under management (AUM) were the primary driving factors for Lazard. On Oct 24, Lazard reported third-quarter 2013 adjusted earnings of 46 cents per share, outpacing the Zacks Consensus Estimate of 35 cents. Moreover, this compared favorably with 26 cents earned in the prior-year quarter. On a year-over-year basis, Lazard experienced 10.0% rise in both revenues and AUM, which acted as positives for the quarter. AUM growth resulted from market appreciation and rise in net inflows. Additionally, the company’s capital ratios depict its strong position. However, a 4.3% increase in expenses was the headwind for the quarter. Further, Lazard has delivered positive earnings surprises in 3 out of the last 4 quarters with an average beat of 35.95%. Estimate Revisions Show Potency Over the last 30 days, 3 out of 7 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 4.7% to $1.77 per share. For 2014, 4 out of 7 estimates moved north, helping the Zacks Consensus Estimate advance 6.1% to $2.44 per share.

Lazard Earnings Rise 75% on Deals

BY MICHAEL J. DE LA MERCED

Lazard, via Associated PressKenneth M. Jacobs, Lazard’s chief executive.

An improving market for deals and cost-cutting bolstered Lazard’s third-quarter earnings, as the investment bank reported on Thursday a 75 percent increase in profit from the period a year earlier.

The firm said it earned $62 million in adjusted profit for the quarter, amounting to 46 cents a share. On average, analysts had been expecting a profit of 35 cents a share, according to estimates compiled by Standard & Poor’s Capital IQ.

Lazard also reported a 10 percent rise in operating revenue, to $489 million.

“It was a solid quarter on both sides of the business,” Kenneth M. Jacobs, Lazard’s chief executive, said by telephone.

The improvement in Lazard’s results reflect, in part, a rise in markets, which has helped both the firm’s core financial advisory arm and its asset management business.

Its best-known operation, its mergers arm, reported a 3 percent rise in revenue, to $192 million. Assignments that the firm completed in the quarter included the sale of the Dutch coffee and tea company D.E. Master Blenders 1753 to Joh. A. Benckiser and the $2.8 billion sale of Ameristar Casinos to Pinnacle Entertainment.

Mr. Jacobs said he expected mergers activity to continue rising, given continued improvement in global economies and increased confidence in corporate boardrooms.

“The change in the last six to 12 months has generally been confidence,” he said. “That augurs well for deals.”

And Lazard’s asset management arm reported a 13 percent rise in revenue, to $248 million, as the firm’s assets under management rose to a record $176 billion thanks to increasing values and new client money.

The investment bank also disclosed that it held its adjusted compensation ratio at 60 percent, compared with 62.7 percent in the period a year earlier. Its ratio of noncompensation expenses to operating revenue fell to 19.7 percent from 21.5 percent.

How to build value in the drug business: This is a great video from Forbes, This year's two biggest pharma takeouts were Onyx Pharmaceuticals, purchased by Amgen for $10 BIllion, and Bausch + Lomb, a turnaround story sold to Valeant for $8.7 billion. The CEOs from both companies talk about how to revitalize a pharmaceutical firm. The discussion is moderated by Lazard's Kenneth Jacobs. 

Lazard Earnings Rise 75%

Kenneth M. Jacobs, Lazard CEO

Earnings have risen 75% on deals and cost cutting. The firm reported it earned $62 million in adjusted profit for the quarter. This amounts to 46 cents a share. They reported a 10% rise in operational revenue to $489 million. 

Dealbook also reported Lazard had increased in profits last quarter as well. 

Philadelphia sells PGW

Philadelphia Gas Works is being sold as advised by Lazard Ltd.  The administration of Philadelphia Mayor Nuttter continues to build a case for the sale of the Philadelphia Gas works. They released a cost benefit analysis showing how the sale would be good for the taxpayer. This new report was completed by financial advisory firm Lazard. The report estimates that the sale of PGW will be for between $1.45 billion and $1.9 billion. This sale will yield a net profit for the city of between $422 million and $872 million after PGW's debts are paid. Budget Director Rebecca Rhynhart claims the report is a conservative estimate of the value of PGW. She bases this on the opportunities that exist for new business opportunities and rate increases in the future. Mayor Nutter would like the money from this sale to go towards the city's pension system which is currently underfunded. Critics of this sale point out that the sale of PGW will lose the city $18 million in a year. Rhynhart claims that this will be made up for by additional room in the budget from the now funded pension funds.

http://aclassasset.blogspot.com/2013/10/philadelphia-sells-philadelphia-gas.html

Goldman Sachs Upgrades Lazard Ltd to a "Conviction Buy"

We talked about Lazard (not to be confused with Lazard Capital Markets) a couple weeks ago after they released a Levelized Cost of Energy Analysis. If you did not read that article Lazard is a global financial advisory firm founded in 1848. They operate all over the world and specializes in giving advice on mergers and acquisitions, strategic matter as well as restructuring and capital structure. Goldman Sachs on Monday upgraded Lazard to "Conviction Buy" from "Neutral." They also raised their price target to $45 from the previous $37. In a statement Goldman Sachs analyst Alexander Blostein said, “We believe the Street underestimates LAZ’s margin improvement opportunity in 2014 given strengthening revenue backdrop in both the Advisory and Asset Mgmt. businesses, and cost cut realization... “With modest revenue growth assumptions, we believe LAZ should achieve its 25% operating margin target, leaving us about 10% above consensus for the next two years. Furthermore, in our view, the firm’s significant cash flow generation (13% FCF yield) creates opportunities for corporate debt reduction starting in 2015, as well as dividend growth over time. Longer-term, we believe LAZ provides the most upside potential to an improving global M&A cycle mainly due to its European presence – currently the largest drag on M&A volumes.” For more information on Lazard's successes, the New York Times released an article here

http://aclassasset.blogspot.com/2013/10/goldman-sachs-upgrades-lazard-ltd-to.html

Royal Mail to go public (advised by Lazard

The British package service Royal mail was available to private investors last week, they are being advised through this process by Lazard Ltd. (NYSE: LAZ). Lazard is a financial advisory founded in 1848 with noted leaders like CEO Kenneth Jacobs. Seeing a wave of investors jumping on a chance to invest, placing orders for far more shares than being offered. They are making their full public offering on October 11th, individuals interested in investing can apply for shared but the offer is expected to close on October 8th. Positives for investing  Royal Mail is well placed for growth from online shopping. Leading provider of postal services in the UK Royal mail has been restructuring to be more efficient since 2008 Negatives of investing Letter volume continues to decline as digital press increases. Disputes with trade union could disrupt national distribution Performance is effected by macroeconomic trends Has an aging IT infrastructure.

  http://aclassasset.blogspot.com/2013/10/royal-mail-goes-public-as-advised-by.html

Lloyd a buy after de-nationalization

A blog about Finance and Private Equity. This blog will give weekly updates on stocks and follow the news on large equity firms.

check out this blog

Flaton, Formerly at Lazard, Joins Zolfo Cooper

By: Emily Glazer

Carol Flaton, most recently a Lazard banker specializing in restructurings, has moved to turnaround firm Zolfo Cooper LLC to help strengthen its advisory practice.

Ms. Flaton, 49, started as managing director at New York-based Zolfo Cooper, which has about 50 people.

“I’ve known the guys for 15 years,” she said of people she’s worked with at Zolfo. “The middle of the night conference room negotiations either on my side or against it – the mettle is tested.”

The closely held firm had an advisory practice since it was founded in 1985. It advised restaurant chain Friendly’s and creditors in American Airlines Inc. and Eastman KodakKODK -0.40%. Zolfo Cooper also worked on Enron Corp.’s bankruptcy and film studio Metro-Goldwyn-Mayer Studios Inc. before and during its bankruptcy proceedings.

The firm has an “interim management” business, where its executives serve as chief restructuring officers, a temporary role to improve companies’ operations in distressed situations.

Ms. Flaton most recently served as a managing director in Lazard’s restructuring advisory group until this past fall. She worked on situations including real estate finance company Capmark Financial Group Inc.CPMK -8.54%, telecommunications firm LightSquared Inc. and energy producer Dynegy Inc.

Among other prior roles, Ms. Flaton worked on creditor-side advisory work at CitigroupInc.C -0.79% and spent roughly a decade at Credit Suisse Group AG, including a five-year stint in Europe.

Lazard Agrees to Increase Disclosure of Managed Assets

Lazard Ltd. (LAZ), the independent merger adviser that earns about half of its revenue from asset management, agreed to boost disclosures about that business after a request from regulators.

Lazard said it will include tables showing inflows and outflows, as well as changes in market value for specific asset classes, including equities and fixed income, in future filings, according to correspondence between the Hamilton, Bermuda-based company and the Securities and Exchange Commission released today.

Lazard’s revenue from the business climbed 13 percent to $248 million in the third quarter from a year earlier as assets under management surged to a record $176 billion at Sept. 30, according to an Oct. 24 statement. Lazard’s proposed table shows the results were aided by a $9.06 billion appreciation in the market value of managed equities.

Judi Mackey, a spokeswoman for Lazard, declined to comment on the filings.

http://www.bloomberg.com/news/2014-01-10/lazard-agrees-to-increase-disclosure-of-assets-under-management.html

“It was a solid quarter on both sides of the business,”  - 

Kenneth Jacobs, CEO of Lazard Ltd

Ethiopia hires French firm Lazard to secure credit rating-officials

By: Aaron Maasho

Dec 19 (Reuters) - Ethiopia has hired French investment bank and asset manager Lazard Ltd in a bid to select rating companies and secure its first credit rating, officials said on Thursday, which would pave the way for issuing a debut Eurobond.

In an October interview, Prime Minister Hailemariam Desalegn told Reuters that Addis Ababa planned "not only a Eurobond but other bonds as well" once it secured a rating.

Ethiopia has ruled out liberalising its state-owned banks or telecoms sector to foreigners saying the revenues generated for the state each year were spent on vital infrastructure projects.

But a Eurobond issue would give investors, who have snapped up sub-Saharan sovereignbonds, another route into Africa's second most populous nation, which is keen to shift its largely agrarian economy towards textiles and other manufacturing.

"We chose a French company. The second phase will be to initiate a rating for the country," Sufian Ahmed, Ethiopia's minister for finance and economic development, told a businessforum attended by a delegation of 30 French firms.

Another official at the ministry told Reuters the government had hired Lazard Ltd, and that Addis Ababa expected the whole process to be finalised in a "few months".

The French delegation included officials from French banks BNP Paribas and Societe Generale.

Propelled by huge public spending on infrastructure and an expansion in services and agriculture, Ethiopia's economic output is set to grow 7.5 percent in each of the next two fiscal years, the IMF says.

The Washington-based body, however, has warned Ethiopia that its economy has reached a crossroads and, to prevent growth rates from falling, needs to be restructured to encourage more private sector investment. (Reporting by Aaron Maasho; editing by George Obulutsa and Rosalind Russell)

Yield Boosts Lazard

By: StockoptionChannel.com

Shareholders of Lazard (LAZ) looking to boost their income beyond the stock's 2.3% annualized dividend yield can sell the June 2014 covered call at the $45 strike and collect the premium based on the $1.80 bid, which annualizes to an additional 7.9% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away. Any upside above $45 would be lost if the stock rises there and is called away, but LAZ shares would have to climb 4.4% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 8.6% return from this trading level, in addition to any dividends collected before the stock was called.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Lazard, looking at the dividend history chart for LAZ below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2.3% annualized dividend yield.

Below is a chart showing LAZ's trailing twelve month trading history, with the $45 strike highlighted in red:

The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the June 2014 covered call at the $45 strike gives good reward for the risk of having given away the upside beyond $45. (Do most options expire worthless? This and six other common options myths debunked). We calculate the trailing twelve month volatility for Lazard (considering the last 252 trading day closing values as well as today's price of $43.24) to be 26%. For other call options contract ideas at the various different available expirations, visit the LAZ Stock Options page of StockOptionsChannel.com.

In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 642,577 contracts, with call volume at 1.08M, for a put:call ratio of 0.60 so far for the day. Compared to the long-term median put:call ratio of .65, that represents high call volume relative to puts; in other words, buyers are showing a preference for calls in options trading so far today. Find out which 15 call and put options traders are talking about today.

Lazard Declares Special Dividend

NEW YORK, Dec 10, 2013 (BUSINESS WIRE) -- Lazard Ltd LAZ +0.56% today announced that its Board of Directors has voted to declare a special dividend of $0.25 per share on its outstanding Class A common stock. The special dividend is payable on December 27, 2013, to stockholders of record on December 20, 2013.

About-Lazard

Lazard has $100 million more for investments

By Brett Cole

Lazard Australia Private Equity Ltd has made only one investment from its 2011, $120 million fund but that investment in sportswear company 2XU has been spectacular. It may however be hard to repeat as Lazard looks to make as many as five more investments with the $100 million left in the fund.

Gareth Young, director of Lazard Australia Private Equity, told DataRoom the fund’s realised return from its 2XU investment is in excess of two times money multiple, or a 50 per cent internal rate of return, per annum.

Lazard has sold some of its shareholding in 2XU to LVMH Moet Hennessy Louis Vuitton SA, enabling it to monetise an investment that is just two years old.

Lazard Australia has until 2021 to invest and liquidate investments from its second fund that will take stakes of up to 49 per cent in companies headquartered in Australia. The firm’s 2006, $330 million fund is fully invested and Lazard has five investments to sell from the fund in the next couple of years.

The firm’s $120 million fund usually takes minority stakes in companies using a minimal of leverage. Six people, mostly in Melbourne, work on investments.

Young says the Lazard fund is not a leveraged buyout or venture capital investor but a “corporate opportunities fund” that has no sector specialty and invests along “macro thematic” lines.

Lazard CEO Kenneth Jacobs is interviewed on European Debt Crisis

 Kenneth Jacobs, chief executive officer of Lazard Ltd., talks about the global economy, the European debt crisis and banking regulations. He speaks on Bloomberg Television's "Conversations With Judy Woodruff,"

Lazard Ltd : Lazard World Dividend & Income Fund Declares Monthly Distribution

Lazard

http://www.4-traders.com/LAZARD-LTD-13358/news/Lazard-Ltd--Lazard-World-Dividend--Income-Fund-Declares-Monthly-Distribution-17474880/

The Board of Directors of Lazard World Dividend & Income Fund, Inc. (the "Fund") (NYSE:LOR) has authorized the Fund to declare today, pursuant to a level distribution policy, a monthly distribution of $0.07822 per share on the Fund's outstanding common stock. The distribution is payable on December 23, 2013 to shareholders of record on December 12, 2013. The ex-dividend date is December 10, 2013.

Portfolio data as of October 31, 2013, including performance, asset allocation, top 10 holdings, sector weightings, regional exposure, and other Fund characteristics have been posted on Lazard Asset Management LLC's ("LAM") website, www.LazardNet.com. Additionally, the notice required by Section 19(a) of the Investment Company Act of 1940, as amended, which provides information regarding the respective estimated amounts of each monthly distribution derived from net investment income, net realized capital gains (short- and long-term) and return of capital, will also be available on www.LazardNet.com.

The Fund's objective is total return, through a combination of dividends, income, and capital appreciation. The Fund's net assets are invested in a portfolio of approximately 60 to 90 world equity securities, consisting primarily of stocks selected from the current holdings of other accounts managed by LAM. The equity portfolio is broadly diversified in both developed and emerging market countries and across the capitalization spectrum. The Fund seeks enhanced income by investing in short duration (typically less than one year) emerging market forward currency contracts and other emerging market debt instruments.

An indirect subsidiary of Lazard Ltd (NYSE:LAZ), LAM, the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of September 30, 2013, LAM and affiliated asset management companies in the Lazard Group managed $176 billion worth of client assets. For more information about LAM, please go to www.LazardNet.com.

Lazard hits new 52 week high

Zachs Equity Research

November 16th 2013.

Shares of Lazard Ltd.  reached a new 52-week high, touching $41.66 at the second half of the trading session on Nov 18. However, the stock closed the session at $41.26, which reflects a solid year-to-date return of 34.7%.The trading volume for the session was 0.5 million shares. Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 12.0%. Growth Drivers Impressive third-quarter 2013 results comprising a positive earnings surprise of 31.64%, top-line growth, a strong capital position and higher assets under management (AUM) were the primary driving factors for Lazard. On Oct 24, Lazard reported third-quarter 2013 adjusted earnings of 46 cents per share, outpacing the Zacks Consensus Estimate of 35 cents. Moreover, this compared favorably with 26 cents earned in the prior-year quarter. On a year-over-year basis, Lazard experienced 10.0% rise in both revenues and AUM, which acted as positives for the quarter. AUM growth resulted from market appreciation and rise in net inflows. Additionally, the company’s capital ratios depict its strong position. However, a 4.3% increase in expenses was the headwind for the quarter. Further, Lazard has delivered positive earnings surprises in 3 out of the last 4 quarters with an average beat of 35.95%. Estimate Revisions Show Potency Over the last 30 days, 3 out of 7 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 4.7% to $1.77 per share. For 2014, 4 out of 7 estimates moved north, helping the Zacks Consensus Estimate advance 6.1% to $2.44 per share.

Lazard has announced principal offering

Lazard has announced that one of its subsidiaries Lazard Group LLC, also known simply as the Lazard Group, is commencing principal offer of senior notes due in 2020. The offer will be worth $500 million and the notes will be issued by Lazard Group. They will be offered pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission, they will be senior unsecured obligations of Lazard Group. In addition to the notes offering the Lazard is starting a cash tender offer. This offer will be for all its outstanding 7.125% of senior notes due May 15th, 2015. With these existing notes, Lazard Group expects to exercise its right to redeem all existing notes not purchased in the tender off at a make-whole price. The group intends to use the profits from the notees offering along with cash to purchase or redeem all of its outstanding existing 2015 notes and to pay fees and expenses related. There are a number of groups acting as dealer managers for the tender offer, they include: Citigroup Global Markets Inc., Goldman, Sachs & Co., and Lazard Frères & Co. LLC.

Improving College Outcomes

Hamilton Project released three new policy proposals by outside experts on how to changes in student lending and financial-aid policies can help improve college outcomes. The findings from the paper are here. 

The Brookings institute is a nonprofit public policy organization based in Washington D.C. Their mission is to conduct high-quality independent research to provide practical recommendations that advance three goals:

1. Strengthen American Democracy

2. Foster economic and social welfare

3. Secure a more open, safe and prosperous international system

The institute has notable leadership such as president Strobe Talbott and board members like Lazard CEO Kenneth Jacobs. 

Kenneth Jacobs awarded Simon Wiesenthal Center's Humanitarian Award

The most successful Simon Wiesetnthal Award dinner ever, the dinner raised $1.6 million. 

The Wiesenthal Center is “a living memorial to the memory of a great man — Simon Wiesenthal — who died eight years ago at the age of 96, sixty years after his liberation,” New York State Governor, Andrew Cuomo said: “Now some will say that the Center’s mission is complete.” Apropos the emergence of anti-Semitism worldwide, Cuomo cited incidents in France when “last month a group of Jews were attacked by a gang of teenagers…in Spain two months ago…’Adolf Hitler was right’ was painted across a bullfight arena…. It is very much a real threat in the world we live in…. So Simon Wiesenthal was right and you are right to be here this evening. We need a strong Israel and we need a strong America…working hand-in-glove because they are the bulwarks for democracy on this globe.” At the dinner Kenneth Jacobs, Lazard Ldt.'s Chairman and CEO was awarded the Centers Humanitarian Award. 

Why we should nurture Googles of tomorrow

"I believe things can change. But instead of diverting huge national resources into house prices to fuel consumption, it means making an equivalent commitment to technology businesses, to long-term capital provision and to supporting our “Googles” of tomorrow."

Archie Norman

Mr. Norman is chairman of Lazard London 

Lazard sends George Bilicic to Chicago to reinvigorate the office.

George Bilicic new lead Lazard Ltd. investment banker in ChicagoTwo senior bankers on the deal-making side of Lazard Ltd.'s advisory business have exited the Chicago office earlier this year. In response Lazard has send George Bilicic Jr. to take control and reinvigorate the company office in Chicago. This is Mr. Bilicic second stint working with the Chicago office. He first started supervising the office remotely in 2006. When asked about his previous experience Mr. Bilicic said, "The chief lesson learned from that was that you couldn't be a suitcase banker and be successful with companies in the Midwest." In this round of work Mr. Bilicic is moving to the windy city with his family. He has never lived in Chicago before and plans to expand business by becoming active in city business as well as the civic scene, joining organization boards in the city and having his bankers to the same.

While Bilicic has not stated any specific boards or charities he plans to participate in his direct superior, Lazard CEO Kenneth Jacobs is a member of the board of trustees for the University of Chicago.  Lazard is a midsize international financial advisory and faces competition from Larger entities such as Goldman Sachs Group Inc. The company has about 2,400 employees world wide and aims to cut around 250 this year while expanding growth.  Lazard earning nearly doubled in the second quarter with $59.9 million. This is in part due to its jump in deals in its consumer, health care services and technology areas.

http://assetsandmanagement.blogspot.com/2013/10/lazard-sends-george-bilicic-to-chicago.html

Lazard released this great analysis, their CEO is Kenneth Jacobs

Analysis: 50% Reduction In Cost Of Renewable Energy Since 2008

by Silvio Marcacci – Special to JBS News

That renewable energy is becoming more cost-competitive…

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