Amaranth is a name synonymous with disaster. Branded as the biggest hedge fund collapse in history, Amaranth lost $6 billion of investor’s money in one week alone.
So what was the culprit behind the fund’s demise? Surprisingly, it all boiled down to one bad bet. The funds we have seen collapsing lately due … Continue Reading

With all of the various hedge fund strategies that managers employ, the global macro strategy is one of the broadest yet most detailed approaches used to garner sizable returns.
The global macro manager usually uses leverage to make bets on price movements in any market of the world, hence the term “global.”  The term “macro” refers … Continue Reading

In 2007, it was impossible to turn on the news without hearing about one of two things. Britney Spears, or the subprime mortgage crisis. While both debacles got an equal share of press and public scrutiny, the subprime mortgage crisis is still reeking havoc on the economy, and so far, have cost … Continue Reading

After a much publicized debate on their troubled hedge funds, Drake Management will shut down their $2.5 billion Global Opportunities Fund.
Drake had suspended redemptions in December of 2007, after the fund lost 25% of its value and investors rushed to withdraw money. Investors were denied the action of “liquidating investments in a market characterized … Continue Reading

Over $3 trillion dollars is traded everyday on the foreign exchange market. This market, also called Forex, exists whenever one currency is traded for another. Big players in this market include large banks, governments, central banks, corporations, currency speculators, and hedge funds.
Top 10 Currencies Traded

U.S dollar
Euro
Japanese yen
British pound sterling
Swiss franc
Australian dollar
Canadian dollar
Swedish krona
Hong … Continue Reading