Hedge Funds

Looks like the first six months of the year haven’t been too kind to U.S. hedge funds and stock mutual funds. According to the Internet news site NewsMax.com yesterday: U.S. hedge funds, which often promise to make money in all markets, were in the red during the first half of the year but did not lose [...]

By David Ellis, CNNMoney.com staff writerHedge funds delivered their worst performance on record during the first half of 2008, revealing that the industry has not been immune to the broader market turmoil.As a group, hedge funds declined 0.68% through the end of June, and are down 0.75% so far this year, according to numbers published this week by industry tracker Hedge Fund Research.The figures

By William Hutchings and David Walker Of FINANCIAL NEWS Lehman Brothers and U.S. credit manager Aladdin Capital are each raising $3 billion funds to back small hedge fund managers in the hope of capitalizing on the worst dislocation in the industry for a decade. Lehman Brothers aims to raise $3 billion to $5 [...]

Global Macro FundsGlobal Macro Hedge Funds OverviewThe global macro approach to investing is one of the most popular hedge fund strategies seen today. Global macro fund managers try to make leveraged bets on aspects of the global macro economy. For example, fund managers could place these leveraged bets on currencies, commodities, interest rates, or even equities. As most investors global macro ma

Reuters, Tuesday June 10 2008BOSTON, June 10 (Reuters) - Investors pulled a net $5.9 billion out of U.S. hedge funds in April, marking the industry's biggest outflow in 6-1/2 years as they punished managers for their worst-ever returns at the start of 2008.According to new data released by TrimTabs Investment Research and BarclayHedge late on Monday evening, investors took $9.4 billion away from i

By Carol J. Loomis, senior editor at largeWill a collection of hedge funds, carefully selected by experts, return more to investors over the next 10 years than the S&P 500?That question is now the subject of a bet between Warren Buffett, the CEO of Berkshire Hathaway, and Protégé Partners LLC, a New York City money management firm that runs funds of hedge funds - in other words, a firm whose exi

OMAHA (Nebraska) - BILLIONAIRE Warren Buffett has wagered roughly US$320,000 (S$437,000) of his own money that the S&P 500 will outperform a collection of hedge funds. The bet covers a decade and says that all the fees, costs and expenses must be included. The terms of the bet between the chairman and CEO of Berkshire Hathaway Inc and the money managers who own Protege Partners LLC are outlined on

Hedge Funds for HabitatHedge Funds for Habitat New York CityI recently stumbled across the video below showing hedge fund industry professionals volunteering for Habit for Humanity in New York City."Hedge Funds for Habitat-NYC is an initiative by the hedge fund community to to provide hardworking New York City families with a once-in-a-lifetime homeownership opportunity through Habitat for Humanit

If the smart money is right, the price of oil is going down. According to Bloomberg "Hedge-fund managers and speculators reduced bets on higher oil prices by... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Hedge Funds CanadaCanadian Hedge Fund GuideBelow is a short narrative on hedge funds in Canada followed by a dozen links to additional articles and resources on the Canadian hedge fund industry. The hedge fund industry in Canada is relatively small, with fewer hedge funds and fewer assets than those in major financial centers such as those in the UK and the US. Only 4% have assets of more than $5

China - Hedge FundsGuide to Hedge Funds in ChinaI am starting to build up a list of articles and resources related to hedge funds in China. It is sometimes hard to find information on what the hedge fund industry is like within different regions or cities of the world so these regional hedge fund guides are aiming to help fill that void.While I hope that within a year this Guide to Hedge Funds in

After watching another short excerpt of a Warren Buffet speech, I thought I may quickly summarise the collapse of the famous Hedge Fund, Long Term Capital Management. But First, Watch this excerpt, it is both funny and informative. I have sourced most of the information below from an excellent paper done by Gregory Connor and Mason [...]

As one of the world’s leading hedge fund managers George Soros has a lot to gain by stirring up market gyrations. But a new Deutsche Bank survey of a thousand hedge fund investors found 80 per cent of participants bearish. Soros is no longer alone, indeed for a contrarian he is frighteningly close to the [...]

In an amazing turn around hedge funds are now being touted as the possible 'heroes' of the market as reported by the FT. Having been pilloried by the regulators before the credit crunch for earning too much money and being 'secretive' to being blamed for their 'slap dash' approach to leverage it is all the more amusing that they should be portrayed as the potential heroes of the moment. The

Hedge Funds ReturnsApril 2008 Hedge Funds ReturnsHedgeFund.net just released the returns of hedge funds in their for April 2008. In short the average hedge fund manager gained some meaningful ground while energy funds took off, overall most hedge fund managers are still weighed down though by poor Q1 performance. I skimmed through and have pulled out a few of the highlights below:The comprehensive HedgeFund.Net database reveals that Hedge Fund Aggregate Average increased by 1.96% in April.The energy sector funds were the best performing funds in April, improving with a Energy Sector Average of +5.70% last month.The spike in fuel and energy prices have benefited the Emerging Market Average +3.23%. These high prices specifically benefited hedge funds focusing in the Middle East and North

Product Description Hedge funds have long been viewed as mysterious, high-risk investments, unsuitable for most investors. All About Hedge Funds debunks these myths and explains how any investor can take advantage of the high-potential returns of hedge funds while incorporating safeguards to limit their volatility and risk. This clear-headed, commonsense guide tells investors: What hedge funds

Hedge Funds in New YorkList of Hedge Funds in New YorkSchwab Enterprises just recently released their "Top New York Hedge Funds List" through their website. You might recognize the name of this firm as its founder wrote the very popular hedge fund career guide entitled Hedge Me, read my review of this book here.Schwab Enterprises built this list of hedge funds by only considering New York hedge funds that are stand alone entities, have more than a 5 year track record and manage over $1 Billion of assets. Their list of top hedge funds in New York City is below, and here is the direct link to how they produced it.Alson Capital Partners, LLCAmber Capital, L.P.Arience Capital Management, L.P.Atticus Capital, LLCBlue Ridge Capital, LLCBrahman Management, LLCBrencourt Advisors, LLCBridger Mana

Hedge Funds LondonGuide to Hedge Funds in LondonI am slowly building up short geographical guides to the hedge fund industry by region and city having already started a guide to hedge funds in New York I thought it would now make sense to provide 15-20 resources on hedge funds in London. These geographical guides to hedge funds will always be works in progress as I add new resources every quarter related to, in this case, hedge funds in London. Down the road I will be creating guides to hedge funds in Australia, Canada, Asia, Singapore, Indonesia, France, Italy and the EU.Top London Hedge Fund ResourcesHedgeweek special report that focuses exclusively on London. Well-written and current.Hedge Funds Review is based in the UK and provides news and statistics on the latest in hedge funds.Lond

Ive been wondering what this meant for a while now. Suddenly i got an insight. That insight was browsing through Wikipedia and other sites. I know it sounds ridiculous, but its legit. The information i found out about hedge funds was simply stunning. It shows you how to save more money than…well why dont i [...]

Hedge Funds DatabaseQ&A: Hedge Funds Database SubmissionsI got this hedge funds database related email yesterday afternoon and it is a question that often comes from either startup hedge funds or established hedge funds that want to make sure they are on the radar of all the big hedge funds databases.Richard, I've been reading your blog for 4-5 months now and I run a global macro hedge fund based in New York. I have a quick question for you. In which databases should we be posting our hedge fund performance figures in? I would makes sure your hedge fund performance data and portfolio construction process are detailed within these databases:Cogent HedgeHedgeFund.netEurekahedgeHedgeCo.netInvestor ForceMercerMorningstar- RichardSubscribe To this Blog via Email | Or RSSArticles Related t

Top Performing Hedge FundsTop Performing Hedge Funds of 2007If you took a quick look at my recent hedge fund performance article or have been following recent news you know that some hedge funds have been fairing very well throughout current market conditions.The following is Barron's ranking of the world's best performing hedge funds:1. Hedge Fund: Passport II GlobalCompany: Passport Capital2007 Return: 219.44%2. Hedge Fund: Dynamic PowerCompany: Goodman & Company2007 Return: 38.60%3. Hedge Fund: Paulson EnhancedCompany: Paulson & Co.2007 Return: 129.13%4. Hedge Fund: Balestra Capital PartnersCompany: Balestra Capital2007 Return: 199.14%5. Hedge Fund: Renaissance Technologies Medallion FundCompany: Renaissance Technologies2007 Return: 73.70%6. Hedge Fund: Metage Special Emerging M

Hedge funds, nervous about the fading magic of the markets, are moving into cash, the perfect investment for retiring school teachers. The reasons that fund... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

As more and more of the world come to rely on energy so the investment market has come to rely on energy hedge funds. Energy hedge funds are portfolios, managed by a portfolio manager, with the intent and purpose of providing steady growth and investment return regardless of market conditions. What makes energy hedge funds so attractive is that the demand for energy, the new sources available on a worldwide level and current political concerns, make these type of funds, energy hedge funds, especially attractive to sophisticated investors seeking to maintain their fortunes. Over one trillion U.S. dollars are invested in hedge funds and now energy hedge funds have begun to gain prominence in the world of hedge fund investing. Energy head funds are solid producers. Why? Because there are no m

Hedge Funds in the UKWebinar - Hedge Funds in the UKI recently became aware of an upcoming complimentary webinar on hedge funds in the UK being hosted by K&L Gates. It is going to be held on April 28th from 4:30-6:00 PM. I am planning on participating as I am interested in keeping up to date on developments in the hedge fund industry in the UK, and I know this presentation will be covering several topics that I am not very familiar with. Here is a list if the planned discussion topics for this webinar:The U.K. regulatory regime: recent developments concerning new fund structures and tax legislation affecting offshore fund exposure to U.K. taxation - ow to maximize the opportunities Valuation of illiquid assets, fund governance, side letters, soft dollars and other hot topics from a U.K

Hedge Funds in IrelandIrish Hedge Fund InterviewI completed a hedge fund interview with an Irish business and finance magazine yesterday about an article they are writing on the health of the hedge fund industry and specifically on hedge funds in Ireland. Apparently the financial times had written an article about the “death of hedge funds” and how they will be disappearing completely. Personally, I believe the Financial Times themselves is more likely to be vaporized than the hedge fund industry. Here is why:15,000+ hedge funds with over 45% of them located in geographically diverse locations outside of London and New YorkOver 250 distinct investment strategies which react differently to market events, regulations, etc.The hedge fund industry if fluid, if one or two governments incr

By Tomoko Yamazaki April 3 (Bloomberg) -- An increasing number of hedge fund managers in Asia are making loans to small companies as they search for more... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

European Expert Networks for Hedge fundsWhat are Expert Networks? A growing trend in the hedge fund industry is the use of expert networks and independent hedge fund research by hedge funds. I have discussed the use of independent hedge fund research in the past and these expert networks are used by hedge funds for the same purpose, to give them more color on recent market/industry events and hopefully provide an information advantage over their competitors. Expert networks can consist of 25 to 1,000+ niche experts who are consultants, operational actors working in all types of industries or well connected leaders with valuable knowledge, insight, experience and information that could be valuable and a unique addition to the internal resources that a hedge fund might have access to

I almost overlooked this little nugget. Prosper has taken to pitching it's lending platform as the perfect solution for hedge funds to get into the consumer credit market. “Prosper is America’s largest peer-to-peer marketplace with over 600,000 members,” stated Kirk Inglis, CFO of Prosper. “As credit markets experience unprecedented changes, institutional lenders, including hedge funds, are

When it comes to what hedge fund means, it can be quite difficult to explain exactly what it is. Certainly, in many cases you will find that no hedging techniques have been used. Instead, what you will find is that the various different hedge funds now available will use a variety of different strategies in order to make a profit for those who invest in them.When it comes to what hedge fund means, it can be quite difficult to explain exactly what it is. Certainly, in many cases you will find that no hedging techniques have been used. Instead, what you will find is that the various different hedge funds now available will use a variety of different strategies in order to make a profit for those who invest in them.Most hedge funds today have been set up as a partnership and will consist of

As the hedge fund industry continues to grow, the markets have turned increasingly volatile today. This logically hurts the less-informed retail investors as it forces more price instability related risks onto their positions even in bullish periods. Growth of Hedge Funds Presently, the hedge fund industry exceeds $1 trillion, and still expanding as money managers attempt to squeeze every drop from the apparently saturated market. The investment vehicles utilized range from equity, commodities, debt instruments, to derivatives of all forms. Some make directional or market neutral bets while others attempt arbitrage. Nevertheless, the relative large sums create significant price impacts with each order. Increased Risks for Public Investors Prices move as a result of relativ

Corporate Event PlannersHedge Fund Corporate Event Planners in New YorkI had breakfast meeting last week in Manhattan with a boutique event planning firm, Penta Dynamic Solutions. While in their offices I met with Michele Verdino, a Goldman Sachs alumni and founder of this 7 year old team of corporate event planners. Penta is unique in that they are focused on providing association management and corporate event planning services to hedge funds and financial service firms. I am going to be using their services to plan and manage my Hedge Fund Group (HFG) events later this year. Penta specializes in many types of event planning such as:Corporate conferencesGolf outingsFundraisersGalas & Holiday PartiesClient Dinners & Coctail PartiesSome of the firms that Penta has provided corp

HEDGE FUNDS NOW MOST IMPORTANT THING PEOPLE KNOW NOTHING ABOUT HEDGE funds have overtaken the Big Bang as the most important thing people know nothing about.As a massive American hedge fund faces imminent collapse, millions of people across the globe have found themselves panicking without the faintest idea why.Tom Logan, head of markets at Donnelly-McPartlin, said: "This fund was over-speculated in long-term, prime-reverse wide-money."It could be devastating or it could be utterly insignificant. Would you like to buy a Range Rover?"Wayne Hayes, 42, from Chelmsford, said: "I was saying to Geoff, I said, 'Geoff mate, this is the big one'. And he's like, 'why?', and I'm like, 'if you don't know, there's no point in me trying to explain it you'."Meanwhile Nikki Hollis, 33, from Doncaster

Historically the hedge funds were available only to the wealthy, or had high initial minimums (quite often more then $100,000), or they have some other disadvantages, like limited liquidity (you can redeem your holdings only once in 1 or 3 months, and you need to give 7, 30 or 60 day advance notice), sales or surrender charges (which can be up to 6% high), lack of transparency or regulatory oversight.Fortunately for small investor, in the last a couple of years a new breed of hedge funds became available to the general public: listed hedge funds. As the name implies, they are the hedge funds listed on a stock exchange. Accordingly, they can be bought or sold like any other stock. Listed hedge funds have a lot of advantages over their traditional cosines:1. Your initial investment can be as

Mind the Gap: Home-Price Downside by WSJ - snip:The economic balance hangs in large part on how much further home prices will fall. A look at one important measure -- the relationship between home prices and household income -- suggests we might not even be halfway there... It is also possible that home prices will overshoot on the downside, just as they did on the upside. Goldman Sachs economists say prices could fall another 15%. Merrill Lynch economists say they could drop another 20% to 30%. Both banks have been more bearish than others on the economy -- and so far look correct to have been so pessimistic . Consumer spending is one potential casualty of falling home prices. When home values fall, households have less home equity to tap when they want to buy a new flat-screen television

Former VP Al Gore may have list the Presidency to George W. Bush, but there seems to be more than one silver lining to his cloudy exit from elective politics. In addition to all his other achivements, including last year's Nobel Peace Prize and the Oscar he got for 'The Inconvinient Truth', Al Gore also has managed to make a lot of money since his 2000 loss. Over $100 million, to be specific.

History of Hedge FundsThe First Hedge Fund - History of Hedge FundsTo many people just starting to get involved in the investment world, the concept of a Hedge Fund is sometimes hard to understand. Whenever something is unclear it always helps us to look at its history to discover more about it. This fact applies to hedge funds as well and by looking at their history, we can hopefully better understand them.The first ever hedge fund was created in 1949 by Alfred W. Jones. For many years, actions such as short selling and leveraging had occurred independently. It was Jones who first used them together. Only three years after he set up the first hedge fund Jones and a few independent portfolio managers expanded his hedge fund and started the first ever “multi-manager” hedge fund.In 1966

Hedge Funds Care Hedge Funds Care Non-Profit OrganizationHedge Funds Care, a nonprofit organization, is one of the feel good stories in the investment world. Founded in 1998 by Rob Davis, Hedge Funds Care has the goal of helping prevent and treat child abuse. With the help of others in the hedge fund industry, the very first Open Your Heart to the Children benefit took place in February 1999 in New York. This initial benefit raised a whopping $542,000. Since that day, Hedge Funds Care has transformed into an internationally recognized organization raising as much as $24 million/year. In addition to events in New York, annual benefits will happen in San Francisco, Chicago, Atlanta, Boston, Toronto, London, and the Cayman Islands to name a few.If you are interested in learni

The US is very shortly staring at $4 per gallon gas in its near future. Oil was at $108 a barrel today and given that those are 55 gallon barrels that is nearly $2 per gallon...for crude oil! The $1 Trillion Question is, Why?What has changed in 24 months in order to send oil from $50 to over $100? Is it demand? Nope, demand is rising 10%+ and will probably slow down to very low growth due to consumers driving less. Has OPEC turned off the spicket? Nope. There have been fluxes, but for the most part...no. Iraq and Venezuela have been an issue, but not enough to cut supply by half. Which is what it would take to double the price (at least in a linear fashion). This report from WTRG shows more great slides to review for yourself. From the report: The U.S. petroleum industry's price has been

The hedge-fund industry is reeling from its worst crisis in a decade as banks are now demanding more money pledged to support outstanding loans even when the investment is backed by the full faith and credit of the United States.Since Feb. 15, at least six hedge funds, totaling more than $5.4 billion, have been forced to liquidate or sell holdings because their lenders -- staggered by almost $190 billion of asset writedowns and credit losses caused by the collapse of the subprime-mortgage market -- raised borrowing rates by as much as 10-fold with new claims for extra collateral.While lenders are most unsettled by credit consisting of real estate and consumer debt, bankers are now attempting to raise the rates they charge on Treasuries, considered the world's safest securities, because of

Hedge Funds Risk ManagementA Short Review of Hedge Fund Risk ManagementWhen trying to maximize absolute returns, the importance of assessing and mitigating risk shouldn't be underestimated. Some memorable examples like LTCM and Tiger Fund not only show how heavy losses can be for some participants of the hedge fund industry, but also reinforce the perception that a good record of high absolute returns can mean absolutely nothing in an environment of improperly managed risk. The most important lesson in terms of Hedge Fund Risk Management comes from the improper name of this kind of alternative investment: The idea that all systematic risks are diversified away is not applicable here, with the Hedge Fund returns, in reality, representing a combination of superior management of market ine

Hedge Funds & Distressed DebtHedge Funds & Distressed Debt Securities A company on the verge of declaring bankruptcy doesn’t sound like a great investment opportunity, does it? Hedge fund portfolio managers who know the ins and outs of distressed securities investing can make out money from the decimated portfolios. The idea is to purchase distressed securities at deep discounts in anticipation that the investment will be worth much more after a turnaround or change in market conditions. It has been noticed that in the recent years, many hedge funds have invested in distressed debt market securities. Much of the distressed debts consist of commercial and real estate loans originally made by companies, banks and other financial institutions, which are now in default, under ban

If you own your own home, you understand that there is no greater feeling. Most ordinary consumers will go to a bank for a home equity loan. Then you will spend the next few years paying off your balance while you enjoy living in your home. Sometimes you may need to refinance your home based on the equity that is built up over the years. In order to figure up your home equity you will need to do some calculating to get the equity of your house and thus to get hold of the home equity debt management loans. Now, there is a point to contemplate. Before getting into the domain of the home equity debt management loans you need to make sure that you understand all the terms before you sign any papers. In this day and age the home equity debt management loans happen to be one of the mo

Hedge Funds or Banks?Recently some investors have been asking themselves which is more risky, hedge funds or banks? While hedge funds are sometimes define using the works "risky" and "highly leveraged" many are now making sure their prime brokerage business partners have enough cash on hand to do their job.“It is quite paradoxical,” said Angelos Metaxa, a director of CM Advisors, a $3bn [€2.05bn] Geneva-based fund of hedge funds. “In August, everyone was worried about a hedge fund blowing up, but now they are worried about a bank blowing up and taking a few hedge funds with it.”Here is the full article on this.- RichardSubscribe To this Blog via Email | Or RSSRelated Articles:1. Prime Brokers2. Hedge Fund Investments3. Fund of Hedge Funds4. Prime Broker Definition5. Table of Con

Fund of Funds On FireHFR reports that Fund of hedge funds now manage $1.3 trillion. This is up over 30% from last year defying skeptics and now accounting for half of the total hedge fund industry. In my fund of hedge funds article last October I talked about why this trend is still growing and probably won't stop any time soon. - RichardSubscribe To this Blog via Email Or RSSArticles Related to "Fund of Hedge Funds on Fire":1. Fund of Hedge Funds2. Hedge Fund Prime Brokers3. 9 Hedge Fund Database Tips4. Hedge Fund Seed Capital5. Multi-Family / Family OfficesPermanent Link: Fund of Hedge Funds on Fire!Related Terms: Fund of Hedge Fund Asset Growth, Hedge Fund of Fund Industry Growth, Fund of fund growth rate, 2007 Hedge Fund of Funds

After years of explosive growth, this secretive, sometimes volatile corner of the financial world is entering a dangerous new era, reports JENNY ANDERSON MARK S Fishman was a modern prince of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

More than expectations...By Dane HamiltonNEW YORK, Dec 10 (Reuters) - Penta Investment Advisers Ltd., an Asia-focused $4.8 billion hedge fund group, is up 123 percent in both of its two main funds in 2007 through October, demonstrating the benefits of strong China markets, according to a recent note sent to investors.Penta, which is run by former Soros Fund Management trader John Zwaanstra, also said it will close its $2.2 billion Penta Asia Fund to new investors next month, according to the letter. Penta didn't say why the fund will make the move, but top-performing funds occasionally shut doors to prevent runaway asset growth.Formerly called Penta Japan Fund, the Asia Fund is up 122.8 percent through October, according to the letter, making it one of the best performers among hedge funds this year. Another of its funds, the $1 billion Asia Domestic Partners fund, is up 123.5 percent through October 2007."Asian markets (except for Japan) surged forward in October," the letter said. "

The Wall Street Journal dumps another load on the already tattered reputation of New York's hedge funds. "When reporting their assets under management, hedge funds typically refer to the amount of money they have attracted from investors...Many hedge funds also borrow money to increase their "leverage," which amplifies their potential returns (and potential losses)....bond fund Y2K said it had

Ross Business Consulting (RBC) News reports that the Russia's State Duma is about to give the green light for Russian hedge funds for qualified investors by early 2008. "Hedge funds for qualified investors could appear in Russia as soon as next year, as the State Duma is due to discuss the second reading of amendments to the bill on investment funds shortly, Tatyana Medvedeva, an expert with the

The Business Magazine had an article today that proposes that the hedge fund industry bubble is about to burst because the funds are now investing in football clubs. "There comes a point in the development of many industries – as there does in the lives of many individuals – where fabulous wealth starts to crowd out common sense" the magazine said. I can understand their logic, I am a Leeds

If doubling the tax rate for carried interest was a blow to private equity funds, now it is hedge funds turn with the FSA announcing that it is launching a formal 'assessment' (code for 'investigation') into the system hedge fund managers have in place to guard against market abuse. This after an initial review showed that some managers don't have adequate controls. This review lead the FSA to

Having served in the military I learned to 'about turn' with the best of them however, sometimes our square bashing did not go according to plan. One such memorable moment was at my 'passing out parade'. My family were there and all eyes were upon us. Just as a formation of Jet Provosts went over head our newly promoted Flight Lieutenant announced 'eyes halt' when of course it should have been '

One of the quirky things about the UK economy of recent years has been the inexorable rise in the property market. In 1998 I lived in a 2 bedroom riverside apartment in a converted Victorian hotel. The views were fantastic and for a young man with a plan it was the perfect location. The walls were paper thin and the whole building needed some work, but all in all it was a great bachelor pad. So I

At a recent Reuters seminar speakers made their point that the hedge fund and private equity industry is at a near term peak in their cycle after the rampant growth of both industries in the last few years. Anthony Bolton of Fidelity said "Private equity and hedge funds both have cycles, and I think we're now at the peak of the cycle for the time being," and added "The flow of money has

Three US hedge funds apparently have targeted beleaguered British mortgage bank Northern Rock. They... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Hedge Funds have matured from an almost mystical investment vehicle that takes care of the very wealthy's portfolios taking huge risks and returning huge profits. These days we all know about the managers making billions and every other fund seems to be called a 'hedge fund'. What is the reality and what really is a hedge fund? Alfred Winslow Jones was cooking something up. After graduating from

Now is the time where hedge fund managers will earn their keep. Earnings season, market volatility, high oil price and possible rate cuts. Working out a strategy that ties all these together and ends ups with a correct trade in each or a trade that makes all these factors neutral, has to be the Holy Grail over the next few weeks and months. Strategies are being created and battle lines being

By Mariko Yasu and Komaki Ito Sept. 6 (Bloomberg) -- Japan doesn't want to deter hedge and buyout funds when it introduces new legislation this month that puts them on the regulator's radar screen, its chief said. ``Japan needs an ecosystem with plenty of bait, not a pond full of distilled water'' to attract global money, said Yoshimi Watanabe, who was named head of Japan's Financial Services

The reputation of global hedge funds may have taken a knock after the subprime mess in the US, but as far as India is concerned, there seems to be no such problems for India-focused hedge funds. Hedge fund managers across Asia are converging in Hong Kong next week for a four-day conference, of which one session will discuss the prospects and potential for the hedge fund industry in the Indian

We start with a humble apology. Our post 'Redemption Song' was picked up by quite a few notable blogs and sites including a call last night from a delightful lady at Dow Jones Newswire. We weren't taking the mickey, we were just injecting a little humour... The premise of the post was that redemption day (being the last 45 day notice for withdrawals) was upon us and there were rumoured to be

“You push this bill through that produces a windfall for the drug companies. And then a short time later, you go to work for the drug lobby at a salary of $2 million. That doesn’t look good.” Take a look at this facinating story from Sunday’s 60 Minutes, about the disturbing relationship between Congress and the drug lobby. Oxfam has released a report saying nearly half of Iraqis live in absolute poverty, and 8 million are in need of immediate humanitarian aid. President Bush is trying to sell Persian Gulf countries $20 billion worth of new, sophisticated arms, in exchange for their cooperation in containing Iran. (Hmmm, this sounds like one of those annoying tidbits Bill O’Reilly’s successors will be denying on television in a few years…) High-profile New York Senator Chuck Schumer is breaking with Democratic party lines, pledging to protect his hedge-funded constituents from overly burdensome taxes. With an exceptionally strong rating from th

Corporate Boards quake at the arrival of active funds on their shareholder lists, politicians hate them, rich people fight to get in them and investment banks are desperate to buy them. That an investment vehicle could arouse such interest is a phenomenon of our times. A Hedge Fund is simply a pooled amount of capital that uses techniques such as leverage when applied to investing both long (

As set out in the NASD Notice to its Members linked below, the NASD has expressed its concern regarding the sale of hedge funds by its representatives to retail customers.  The Notice emphasizes that the risks and disadvantages associated with hedge funds must be fully disclosed to retail customers, and the sales representative or member must use due diligence to investigate the fund and must make a customer specific determination of suitability for the customer’s situation. NASD Notice to Members

Blackstone Group LP is planning to raise up to $2 billion for two new funds of hedge funds, according to recent reports, the Blackstone Strategic Alliance Fund LP and the Blackstone Strategic Alliance Offshore Fund Ltd. Also, according to a report, the Rothschild Group has made its fund of hedge funds tax efficient for UK investors by launching a preference share version of the fund. The Nemrod Sterling Fund Linked Preference Share fund launched on the Channel Islands stock exchange at the end of last month. Finally, Integra Investment Management announced the launch of their new hedge fund, the Integra FX2 Master Fund L.P., with which $10 million of their own money at launch; the new hedge fund opened its doors on April 2007. G Squared Group Asset Management has teamed up with hedge fund services provider VanthedgePoint Group LL by purchasing a 10% minority stake and is launching a fund of hedge fund comprised solely of its emerging manager clients. Hedge Fund Ritchie Capital Manage

Play Video Bear Stearns funds worthless, signaling more subprime problems Bloomberg-Clip - (BLOOM-Clip) Jul. 18, 2007. 06:00 AM EST Investments in two Bear Stearns hedge funds that had been worth $1.5 billion at the end of 2006 are almost entirely gone, the company said Tuesday Bear Sterns, Hedge Funds, Mortgage Backed Securities, Mortgage Bond Market, mortgage news, Mortgage Video ---Related Articles at Consumer Mortgage Reports:Wall Street Crime - Bear Stearns65% Of Subprime Mortgage Debt Didn't Meet Rating Standards"Disintermediation" = Bad News For Brokerage FirmsHousing Through The Worst Loans Still VulnerableWall Street Owned HomesLBO Debt Alarms Ringing

Its Saturday and I have dispensed with all things stock market, bowler hatted and secret bank accountish for the weekend. I have sat out in the Sun for a few hours and even had a workout. Only problem is the lure of my computer was just too much. It just sits there looking all cool and inviting (its an Acer Ferrari one) and I cannot resist its charms, even on my day off, so here I am. It may

U.S. Foreclosures Jump 87 Percent as Lending Practices Tighten by Bloomberg - 7/12/07 snip:The number of U.S. properties in foreclosure climbed 87 percent last month from a year earlier as home prices fell and lending standards tightened, making it harder for borrowers to sell homes and refinance mortgages... The June foreclosure figure was 7 percent lower than that in May, when filings reached a 30-month high, Irvine, California- based RealtyTrac said. "Still, rates in most states remained substantially above last year's levels," James Saccacio, the company's chief executive officer, said in a statement... An estimated 58 percent of properties in the foreclosure process are linked to borrowers with subprime loans, and RealtyTrac expects U.S. foreclosures to reach 1.8 million by year's end, Rick Sharga, a spokesman for the company, said in an interview... More Than Anticipated: "We're running much further ahead of what we had anticipated in terms of year-over-year," Sharga said. "H

Hope things are going well for everyone, it seems like the market’s bull run is still doing quite well. I’ve been traveling a bit for business, which has resulted in the lack of activity recently. However I’ll be posting some more investment ideas and stock charts next week. In the mean time, take a look at this great article on hedge funds from Mark Cuban’s blog. When you are an investor directly into a hedge fund you have 1 single element of leverage on the hedge fund , and that is the ability, often with very stringent limitations, to pull your money from the hedge fund. That is it. Essentially Mr. Cuban says that the hedge funds that have gone public no longer have the ability to take the huge risks that allowed them to make astronomical gains in the first place, which makes investing in these hedge funds pointless. ---Related Articles at The Wall Street Matador:Hedge Fund Myths DebunkedPearls Before BreakfastInvestors Blog Network Festival #9

By Brad KemperHedge funds are really making the news. About half the news is bad, blaming hedge funds for everything from market sell-offs to global warming. The rest of the time the news is gushing about the fabulous returns that hedge fund investors are banking every month.So whom should we believe? Well, I am pretty sure that hedge funds are not responsible for global warming but the surprising truth is that most investors are not doing any better investing in hedge funds than they would investing in the stock market. And probably a lot worse.Hedge funds differ from mutual funds in that they restrict the type and number of investors that may participate. Approved investors must own at least $1 million in assets and have an income of at least $250,000 a year. Apparently the regulators believe that people who fall into this category are better educated and sophisticated enough to understand the risks they are taking. (Be glad you do not fall into this category)By doing this, hedge fun

It is a very valid comparison. See, CDO Hedge Funds = Enron? But, what does it mean to the larger market and especially to small to medium real estate investors? It depends. If you are using these hedge funds as part of your investing strategy, you probably have a lot to worry about. If you are heavily leveraged in your real estate holdings and were counting on an easy refinance this year or next, you really have something to worry about. If your holdings are not heavily leveraged and you have ample room for a price correction and are looking for the long term results from your investing strategy, you probably sleep very well at night and have little to worry about. If you have stockpiled a little cash you are likely to see some really great opportunities present themselves as lenders are forced to tighten their positions and borrowers are forced to sell, walk away or hang on by their fingernails until they are foreclosed on by the lenders. Now is not the time to be entering the stock

It is a very valid comparison. See, CDO Hedge Funds = Enron? But, what does it mean to the larger market and especially to small to medium real estate investors? It depends. If you are using these hedge funds as part of your investing strategy, you probably have a lot to worry about. If you are heavily leveraged in your real estate holdings and were counting on an easy refinance this year or next, you really have something to worry about. If your holdings are not heavily leveraged and you have ample room for a price correction and are looking for the long term results from your investing strategy, you probably sleep very well at night and have little to worry about. If you have stockpiled a little cash you are likely to see some really great opportunities present themselves as lenders are forced to tighten their positions and borrowers are forced to sell, walk away or hang on by their fingernails until they are foreclosed on by the lenders. Now is not the time to be entering the stock

This interesting PBS video explains the rise and the risks of hedge funds. The video does a good job of explaining the potential negative impact from the dramatic amount of leverage used by some hedge funds. Also, the video features hedge fund manager and author Nicholas Taleb, who discusses the posibility of black swan events.

By VIKAS BAJAJ and JULIE CRESWELL The high-stakes game of brinksmanship began early yesterday on Wall Street, and continued throughout the day. Bankers traded telephone calls, frenetically negotiating the fate of two hedge funds. All wanted to avoid a fire sale in the troubled mortgage-securities market, but at the same time, not get stuck with an exploding liability that could result in steep losses. The day ended with deals that appeared to have forestalled a meltdown. But questions remained about how successful they were and whether they had merely delayed the inevitable. As the morning unfolded, lenders to two hedge funds at a unit of Bear Stearns, the investment bank, tried to ascertain what they could expect if they auctioned off mortgage securities with a face value of up to $2 billion. The solicitations were hastily withdrawn when investors reacted with little enthusiasm. But by the end of the day, some of the less-risky securities did change hands. At the same time, sever

Seems that more than a few hedge funds were betting against the sub-prime mortgage backed securities. I guess they forgot the options available to the underwriters… http://www.realestatejournal.com/indinvestor/20070608-kelly.html http://www.realestatejournal.com/indinvestor/20070613-kelly.html

How do I know that we are in the middle of a market mania? I’ve mentioned a few things about low volatility, risk not being discounted, valuations, etc. Today, I want to mention two other things: IPO mania and M&A mania. Near the apex of a bubble, IPOs and mergers and acquisitions become more and [...]

Book DescriptionA just-in-time guide to hedge fund investingToday, access to hedge funds is increasingly available to average investors through "funds of hedge funds" and other registered products. These vehicles allow investors to invest as little as $25,000 to start. Hedges on Hedge Funds provides an overview of hedge fund investing and delves into the key investment strategies employed by hedge fund managers. This comprehensive resource directs people to proper fund selection and allocation, but most importantly, it helps investors avoid the potential pitfalls associated with the industry by discussing transparency, size vs. performance, and other important issues associated with selecting and profiting with hedge funds.James R. Hedges, IV (Naples, FL), is recognized as a pioneer in the hedge fund industry for his efforts to monitor and review funds and fund managers for performance and transparency. He is the founder, President, and Chief Investment Officer of LJH Global Investment

Si uno no quiere encargarse personalmente de gestionar sus ahorros, puede optar por contratar un fondo de inversión. Lo típico es ir al banco y pedir consejo, y acabar contratando... no lo que te conviene a ti, sino lo que le conviene al banco!! Porquerías como los fondos garantizados, o fondos tradicionales gestionados bajo el lema "lo bueno para el banco, lo malo para el fondo", o lo que en [Sigue en el blog]

Si uno no quiere encargarse personalmente de gestionar sus ahorros, puede optar por contratar un fondo de inversión. Lo típico es ir al banco y pedir consejo, y acabar contratando... no lo que te conviene a ti, sino lo que le conviene al banco!! Porquerías como los fondos garantizados, o fondos tradicionales gestionados bajo el lema "lo bueno para el banco, lo malo para el fondo", o lo que en [Sigue en el blog]

Wall Street Journal: Hedge Funds Coming of Age PoliticallyExcerpt:"Tudor Investment Corp. has become the first hedge fund to create a political-action committee, or PAC, in the latest sign of the industry's coming of age here.The move comes as the rapidly expanding, lightly regulated sector faces increasing scrutiny from policy makers. At the same time, hedge-fund executives are being besieged by presidential and congressional campaigns seeking a share of a growing wealth pool that is being tapped. (For related hedge-fund news, see article.)"http://online.wsj.com/public/article/SB117695241352875178-QAkt0LSO_GfyR9Z5hIbfu_T3C80_20080418.html?mod=rss_freeAlex

Book Description "An excellent and comprehensive source of information on hedge funds! From a quantitative view Lhabitant has done it once again by meticulously looking at the important topics in the hedge fund industry. This book has a tremendous wealth of information and is a valuable addition to the hedge fund literature. In addition, it will benefit institutional investors, high net worth

The monthly Van Hedge Fund Sentiment Poll for February shows: 20% Bulls 50% Bears So we have the Lowrisk Poll showing small investors heavily bearish, and now the Hedge Fund Poll showing that Hedge Fund managers are heavily bearish. The bear camp is looking awfully crowded these days...