Tag Archives: Not Categorized

Courtesy of Obama ‘Change’ is a Baffling Word, Bernanke Reappointment, “Cure Rate” on Mortgages Plunging, Central Bankers Call for Continued Stimulus

The American people are receiving a true education from our president regarding the various uses of the baffling word that is ‘Change‘. First, during Obama’s campaign for presidency, we were led to believe that change meant ‘out with the old, in with the new’. Old representing all that was bad and new all that was good. Then, after obtaining the […]

Bill Ackman and the State of Activist Investing, Part II

Despite a series of ongoing challenges, a variety of environmental effects have recently swung in the activists’ favor.  First, as mentioned in my previous blog post, stock prices have taken a tremendous hit over the past year.  Yet while the news media tend to tout the market’s recent resurgence, in reality the S&P 500 still remains more than 25% below […]

Pension Funds Side with Hedge Funds over EU

Reuters reports British pension funds are joining the battle against European Union’s proposed regulations on the hedge fund and alternative investment universe. The National Association of Pension Funds (NAPF) and a director at Hermes, manager of the largest corporate scheme in Britain, said the rules could restrict investment choices and returns, further affecting the ability of pension funds to provide ample […]

Bill Ackman and the Current State of Activist Hedge Funds, Part I

Bill Ackman, the forty-three-year-old founder of hedge fund firm, Pershing Square Capital Management, has had a rough go of late. Readers may recall that in 2007 he raised $2 billion from private investors in order to start a new hedge fund, Pershing Square IV.   Employing a highly-leveraged mix of common stock and call options,  Ackman invested the proceeds in […]

Leading Hedge Funds Making a Case for Gold

If the actions of some of the hedge fund industry’s leading managers is any indication, the attractiveness of gold as an asset class is on the rise.  Several recent disclosures support such a conclusion.  First, a recent survey performed by London-based researcher, Moonraker, found that 20 out of 22 hedge funds had added exposure to gold bullion to their portfolios. […]

Long/Short Mutual Funds

  The market downturn last year has led mutual funds to begin testing new strategies to produce gains with lower risk. Many managers are trying to replicate the methods used by long/short hedge fund managers. By finding negatively correlated positions, fund managers are able to offset losses with gains from other assets in the portfolio.   “130/30” Funds “130/30” funds […]

Emerging Markets Show True Colors During Global Slowdown

Emerging markets have seen explosive growth over the past decade, but with the recent contraction in the global economy, investors have a chance to look at real growth in individual markets. There is no doubt in my mind that the boom over the past couple of years in some countries were due to insatiable investors overbuying in whatever country the […]

Five Interesting Topics on the HedgeCo Q & A Board

 The HedgeCo Q & A Board provides a forum for parties interested in the hedge fund industry to share information. Questions range from people trying to understand what makes hedge fund different from mutual funds to how to calculate complex statistics for portfolio performance. Here is a summary of five of the most popular questions.  Every industry has its excesses. […]

Market Neutral Mutual Funds

  With last year’s market-wide slump, mutual funds are trying to take a play out of the hedge fund playbook. One of the more common strategies employed by hedge-like funds is market neutrality. By taking off-setting positions in equities, fixed-income securities, options, etc., managers can eliminate market risk. Market neutrality conceptually works like this: If a fund manager believes that […]

Some Mutual Funds are Trying to Emulate Hedge Funds

Janet Paskin of the Wall Street Journal reports that mutual funds are trying to emulate hedge funds in an attempt to satisfy average investors needs in alternative fund classes. In the past, hedge funds have been the investment country clubs for wealthy investors. The average investor had no access to hedge funds because he/she was deemed too unsophisticated to research […]