When a company’s CEO buys back stock, he’ll pay you back
A $50 billion stock purchase by Steve Jobs in 1984 will cost you more than $20,000 in cash.
The deal will be paid back within two years, according to a recent analysis by Vanguard.
It was a high-profile deal that sparked an uproar from Wall Street and led to an overhaul of the investment strategy.
Now, the firm that helped broker it, Vanguard’s Lazard, is taking back some of the money it received from Jobs.
But in the process, the hedge fund will be forced to pay back more than a quarter of the $1.4 billion it invested in the stock.
Lazard CEO and co-founder Jefferies & Gray says the deal is a win for investors who have been frustrated by the slow pace of returns for Apple shares and other stocks.
“The acquisition of Lazard has generated an estimated $1 billion of returns over the past 10 years,” Jefferies wrote in a blog post.
“While Lazard received a small amount of cash in exchange for this transaction, the company has been able to reinvest that cash into additional positions.
This reinvestment will enable Lazard to continue its relentless pursuit of the industry’s most promising new technology and will continue to drive Lazard’s growth and success.”
The deal was made possible by a provision in Lazard Securities’ 2014 proxy statement that gave Lazard access to Jobs’ personal pension account, according the firm’s blog post and a statement on the company’s website.
Jobs had about $20 million in retirement account balances when he died in October.
Lazards website does not list how much the deal will pay out.
The firm said in a statement that it is working with the U.S. Securities and Exchange Commission to resolve the dispute with Lazard.
The SEC’s website lists four classes of investments: personal, corporate, non-business, and pension.
The Lazard Investment Management LLC, which is owned by Lazard and its affiliates, was created in 1998 to manage the firm for the purpose of “investing in publicly traded companies and investments in high-growth companies,” the company said in the statement.
Lazargroup also serves as an advisor to Lazard Investments, a non-profit investment firm based in New York.
The U.K. Securities Office says that, between 2004 and 2015, the fund was invested in companies such as Coca-Cola, Starbucks, and General Motors.
The fund also invested in Apple, Google, Amazon, LinkedIn, and Twitter.
“Lazard Investments is the largest investment manager in the U: more than 5% of its assets are invested in publicly-traded companies and over 80% of the funds portfolio is invested in high growth companies,” it said in its statement.