Tag Archives: hedge funds
Hedge Fund Jobs – Analyst
Due to the usually large amount of assets that hedge funds manage, they are under intense pressure from investors to produce enviable returns. After all, the investor is paying hefty fees for the shrewdness and brilliance of the hedge fund manager. The investor is entrusting the manager with a substantial amount of capital and counting on him to produce results […]
The Bayou Hedge Fund, Sam Israel and the $450 Million Facade
In 1995, Sam Israel III and James Marquez launched the Bayou Group LLC, with initially good intentions to produce high returns for investors. With $300 million of initial funds in the Bayou Hedge Fund Group, Israel, along with CFO Daniel Marino, promised investors that the fund would be worth $7.1 billion in ten years. However, the fund almost immediately started […]
Hedge Fund Due Diligence
Hedge funds are limited to a specific group of sophisticated investors mainly because they are thought to have more experience with markets and investing. However, hedge funds aren’t without risk. While you can’t control market conditions, you can control who you choose to handle your money. Weeding out the bad apples can be one of the most important aspects in […]
Real Estate Hedge Funds
Hedge funds enjoy the unique freedom of investing in anything and everything, making them much more diverse than your average mutual fund. Recently, managers have been adding real estate to that list of nontraditional investments. There are estimated to be about 40 real estate hedge funds in existence today. Not to be confused with asset based lending, although similar, real […]
Global Macro Hedge Funds
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 to the macroeconomic principles used by […]
The Subprime Mortgage Crisis – What Happened
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, has cost banks upwards of $285 billion. It was the […]
Drake and its Global Opportunities Fund
After a much publicized debate on their troubled hedge funds, Drake Management has decided to shut down its $2.5 billion Global Opportunities Fund (summer of 2008). 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 […]
Forex hedge funds
Over $3 trillion dollars is traded every day 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 […]
Hedge Fund Risk
The term “hedge fund” was originally coined due the fact that managers would try to hedge the funds against risk in the market by taking both long and short positions. However, risk is almost impossible to avoid in today’s volatile economy, though hedge fund managers do try to use various risk control tactics. There are so many different strategies employed […]
Hedge Fund Risk Management
When 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 […]
Bear Stearns – The domino effect that began with the hedge fund collapse
When most people think of Bear Stearns, they think of its recent collapse and the resulting purchase by JPMorgan Chase. However, the demise of Bear Stearns can really be traced back to two failed hedge funds during the summer of 2007 which created a domino effect on the entirety of the company. Let’s take a look back. Few hedge fund […]
Navigating the Regulation of Hedge Fund Marketing
By JAMES R. HEDGES, IV, PARTNER, AND CHARLOTTE LUER, PARTNER, LJH FINANCIAL MARKETING STRATEGIES, AND LUCINDA O. MCCONATHY, PARTNER, AND PATRICIA C. O’PREY, PARTNER, RICHARDS KIBBE & ORBE LLP Marketing a hedge fund involves a myriad of considerations, including compliance not only with the regulatory requirements and restrictions of the jurisdiction in which the hedge fund is domiciled, but also […]
The History of Hedge Funds
In 1949, Alfred Winslow Jones devised and implemented an investment strategy that would forever brand him as “the father of the hedge fund industry.” While working for Fortune Magazine and investigating financial strategies, Jones decided to launch his own fund and raised a total of $100,000, $40,000 of which was his own money. Jones employed two strategies still used heavily […]
List of Hedge Funds
There are estimated to be over 10,000 hedge funds in existence today. Because they are not regulated like mutual funds and other investments, information on these funds may be a lot harder to find. Another reason for the scarcity of hedge fund information lies in the fact that only accredited investors, qualified clients, or institutions may invest in a hedge […]
Regulation D
According to Wikipedia, Regulation D is a regulation of the U.S. Securities and Exchange Commission and is also a term for an investment strategy, mostly associated with hedge funds, based upon that regulation. It provides a “safe harbor” from the general requirement that all offerings of securities be registered with the SEC, and also exempts certain offerings which total under […]
Hedge Fund Platforms
There has been a half dozen articles in the last year (2008) about private hedge fund platforms being setup or launched by firms such as the Man Group. There are really two types of hedge fund platforms being discussed. One allows hedge funds to trade almost any type of security through one portal and the other is the attempt to […]
Hedge Fund Research
The hedge fund industry is intensively competitive. Depending on who you ask or who you cite there are now between 10,000 and 15,000 hedge funds now in the industry. This rivalry comes to a head while hedge funds compete for large investments by institutional investors. Institutional investors spend months analyzing the investment processes and information/research advantages and resources that hedge […]
Hedge Fund Due Diligence
New hedge funds are launched daily, which is constantly increasing the importance of determining which hedge funds are appropriate for you or your firm to invest in becomes increasingly important. Every person or company is going to have different investment horizons, risk tolerances, strategy preferences, etc. so it is usually more valuable to know the basics of how to evaluate […]
How Much Money is Invested in Hedge Funds?
Hedge Funds closed 2007 with over $2.7 Trillion in total assets under management. In 2007 alone hedge fund assets have risen $500B. $50B of that $337B came from emerging market hedge funds growth with most of those assets being allocated to Chinese and Brazilian hedge fund managers. These types of statistics are important to keep in mind, for if in […]
What are some Emerging Investment Strategies for Hedge Funds?
Risk Arbitrage Risk arbitrage hedge fund strategies usually involve purchasing stocks of companies that are likely takeover targets, while assuming short positions in the would-be acquiring companies. Risk arbitrage hedge fund managers can employ an event-driven investment strategy or merger arbitrage investment strategy, seeking situations such as hostile takeovers, mergers and leveraged buyouts. Such funds typically experience moderate amounts of […]
Top 10 Hedge Fund Myths
There are a lot of aspects about the hedge fund industry that would be hard or nearly impossible to learn by reading mainstream media sources on the subject. To help answer the question about who hedge fund managers are here is a list of what is not true. Top 10 Hedge Fund Myths Most hedge fund managers are billionaires Hedge […]
Sovereign Wealth Funds
No longer to be ignored sovereign wealth funds seem to be popping up in the WSJ as often as Ipod advertisements and pink slips for CEOs. These are pools of fully discretionary capital that are controlled by the government an often times nothing more than a small financial committee of close political allies to the president or leader of the […]
The Process of Creating a Hedge Fund
You’ve done your research. You’ve studied the market relentlessly. You feel you have a strategy devised that will make your investors and yourself a lot of money. In today’s high-tech industry, it is easier than ever to start a hedge fund. Most of the consulting work can now be done via the internet or the telephone. It’s basically a matter […]
What is the Difference Between a Hedge Fund and a Mutual Fund?
While both investment vehicles try to maximize gains and minimize risk for their clients, there are some significant differences between hedge funds and mutual funds. Mainly, mutual funds are limited to stocks, money market accounts, and bonds, though some exceptions can be made. This is why the market has such an impact on mutual funds. Meanwhile, Hedge Funds may invest […]
What is an Offshore Hedge Fund?
Hedge funds structured under foreign law, or located outside the U.S. are designated as “offshore hedge funds.” Managers who desire to start a hedge fund offshore can enjoy several advantages over their domestic contemporaries. One advantage is that the fund and its investors are not subject to United States taxation. Another advantage is that since the number of accounts in […]
Hedge Fund Manager
Hedge Fund Manager Capital Introduction A hedge fund manager and/or any person acting on its behalf may not solicit an investment into a hedge fund through any type of “general solicitation” or general advertisement” under Section (c) of Regulation D. As a result, an increasing number of hedge fund managers rely upon hedge fund advisory services to handle most capital […]
Hedge Funds ( Legal Definitions )
Hedge funds normally do not register with the SEC. Hedge Funds are designed as partnerships, with the general partner typically being the hedge fund’s manager. The hedge fund manager usually makes investment decisions, and has a portion of his/her wealth within the fund. Under the Investment Company Act of 1940, there are two exemptions in which hedge fund managers rely […]
What is a Hedge Fund?
A hedge fund is a private investment fund open only to sophisticated investors. Depending on the type of fund, the investor may need to fulfill the requirement of “accredited investor” or “qualified client.” In most states, hedge funds are not required to register with the Securities and Exchange Commission and are therefore often regarded as “secretive” or “unregulated.” In actuality, there have […]
Should Hedge Funds Be Regulated?
By Paul Oranika (August, 2007) Hedge funds: Background Issues and Controversies Hedge funds are pools of money from individuals and/or groups of qualified investors who met the requirements of the SEC. Unlike mutual funds, they do not trade on exchanges, and are not registered with the Securities and Exchange Commission; their investors are not granted the same consumer-protection benefits extended to […]
