Reuters reported yesterday that according to Satellite Asset Management’s website (currently down), they have closed their fund and attributed it to “client withdrawals”. Satellite Asset Management LP, a $2.8 billion (1.84 billion pounds) hedge fund founded by former employees of billionaire George Soros, is closing down because of client withdrawals, Bloomberg said on its website late Friday. The New York-based […]
Zero Hedge: The latest G.19 filing shows a massive drop in both revolving and non-revolving consumer credit, which has fallen to a one year low at $2.551 trillion, an $11 billion reduction sequentially in credit, split about even between revolving and non-revolving. RCM Comment: The government is trying desperately to spend its way out of this recession, but it cannot […]
Jim Chanos, the founder and managing partner of Kynikos Associates, is likely the most successful pure equities short seller in global markets. Kynikos’ flagship Ursus short bias fund has grown steadily for over two decades and now manages over an estimated $4 billion. The recent bear market has helped the fund earn strong returns, furthering a reputation that was very […]
The equity markets continue to work their way higher as the government-sponsored and controlled bank stress test pageantry is in full swing. In my business we commonly refer to this type of charade as “putting lipstick on a pig”. However, the herd is content at the moment to try and make that silk purse, so we must respect the trend […]
Of all the hedge fund fraud cases, Francesco Rusciano & the Ponta Negra funds, is probably the least interesting, except for one thing: the proximity to VP Joe Biden through Paradigm Global. Based on the information that is freely available online I’ve put together the timeline leading up to Francesco Rusciano arrest. 1982: Born to Frank Louis Rusciano and Roberta Fiske–Rusciano 2003: Writes […]
I feel compelled today to discuss what I am hearing is the eminent demise of the Gold bull market. I have been forced to field emails, phone calls and, yes, even a text message on this topic over the last couple of weeks. To say the least, I am disappointed with some in our flock. Over the last 3 years […]
Yesterday I blogged about cosmetic changes that the HedgeCo team is making on the HedgeCo.Net home page, today we’re going to take it a step farther and solicit your input for future feature additions & the general direction of the site. As many of you know, HedgeCo Networks has been working with Hedge Funds for the last 7 years. Our […]
HedgeCo.Net as of April 27th, 2009 Just a short “Housekeeping” note to let you know to keep your eyes on the HedgeCo.Net homepage for the next few days. There are a couple different things that we are working on: Draw traffic to our unique hedge fund breaking news a Enhance our relationship with S&P by adding direct links to their […]
Most investors understand the concept of Beta, but do not appreciate that all Betas are not created equal. We’ll start with a little Beta primer. Let’s say you have two stocks, Huntington Banc (HBAN) and Invesco (IVZ), which both have a Beta of approximately 2. If the market moves 1% you would expect HBAN and IVZ to move 2%. Investors […]
Review on how Hedge Fund Managers’ Reputation Concerns Influence Investment Strategy
“Nickels vs. Black Swans: Reputation, Trading Strategies, and Asset Prices” by Yale professor Hongjun Yan and his doctoral student Steven Malliaris, looks at how hedge fund managers’ concerns about their reputations affect their investment strategies. The paper explains why “nickel” strategies are popular, even when they offer low expected returns. Nickel strategies are those that earn small positive returns most […]