I wrote an article last month about why 50% of upside is not as good as 50% of downside is bad (see article here– Recap: A $100 million fund that rises 50% then falls 50% the following year will be left with $75 million. This asymmetry highlights the critical importance of understanding downside in portfolio management). I subsequently went out […]

Hedge fund CFOs say addressing new regulatory requirements and meeting evolving investor expectations are the biggest challenges for 2011, according to a poll released today by SEI (Nasdaq: SEIC). The poll, conducted recently at the company’s annual Hedge Fund CFO Forum, revealed that half of the CFOs attending the forum felt that addressing new regulatory requirements is the most significant […]

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. – Warren Buffett If a $100 million dollar fund is up 50% one year and down 50% the next, do you still have a $100 million dollar fund? No, the fund has been reduced to $75 million or a 25% loss. I use this question in almost every conversation […]

I’ve started a new blog which discusses the statistic calculation issues which hedge Funds have to deal with. I’m starting out with the most basic of statistics and then building up to the more complex ratios. The most basic of all calculations a hedge fund will want to report to their investors is their Average returns. Despite the simple nature […]

“We achieved the $10M AUM milestone in eight months, which is remarkable for an inaugural ETF from a start up firm. We attribute our success to our investment philosophy and approach, our product position in a crowded industry and to our growing adoption among financial advisors and individual investors as a low cost, globally diversified ETF,” states Paul Hrabal, Chief […]

Calif.-based hedge fund, Coast Asset Management LLC., has reached their 20th anniversary as an independent multi-strategy alternative investment manager serving the needs of sophisticated institutional and individual investors. Established in December 1990 and operating since the beginning of 1991, Coast was formed by investment management veteran David E. Smith, who continues to lead the firm as president, CEO and chairman of […]

New York (HedgeCo.Net) – Good news for music lovers and art investors, film producers Oley Sassone and Bill Badalato are seeking hedge fund financing for a major motion picture based on the young life of Louis Armstrong, entitled Black & Blue. Total budget for the project is $18 million. The film will be shot in New Orleans, where a 30% […]

All regions posted flat to positive returns for November, with the Eurekahedge Hedge Fund Index up 0.40%1 for the month and 7.72% YTD. Assets in Asian hedge funds crossed US$125 billion for the first time since December 2008. Distressed debt hedge funds remained the best performers in 2010, up 18.89% YTD November. Relative value hedge funds delivered six months of […]

I was listening to Bloomberg TV recently and they had a floor trader talking about “the market.” He was articulating his S&P 500 trading strategy of being a buyer at 1116 and a big seller at 1125, but if the market rose much above 1125, he and the rest of the traders he knew would probably reverse course and get long (S&P […]