Posts filed under “Hedge Funds”

7 Habits of Highly Suspicious Hedge Funds

demonI met Richard Bookstaber at an event recently — very nice guy — and we briefly discussed A Demon of Our Own Design (excerpted here).

This week, he discussed The 7 Habits of Highly Suspicious Hedge Funds (The Journal of Investment Management), which he posted on his own blog as a preview.

Here’s the overview:

1. No independent risk reporting.
2. A change for the worse in the critical risk numbers.
3. Increased use of derivatives.
4. High level of secrecy.
5. Growth in headcount and lifestyle.
6. Decline in assets under management.
7. Lackluster performance in recent years.

Details are at his site . . .

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Source:
The 7 Habits of Highly Suspicious Hedge Funds
Richard Bookstaber
June 22, 2009

http://rick.bookstaber.com/2009/06/7-habits-of-highly-suspicious-funds.html

Category: Derivatives, Hedge Funds

Pequot Capital Closing

Arthur Samberg, among the best-known hedge-fund managers, is closing down his firm amid an ongoing investigation into possible insider trading WSJ: “Public disclosures about the continuing investigation have cast a cloud over the firm and have become a source of personal distraction,” Mr. Samberg wrote in a letter that was sent to investors of his…Read More

Category: Hedge Funds, Legal

The Cream of the Hedge Fund Crop

Barron’s David Schutt and Jack Willoughby speak about the annual release of this year’s best 100 Hedge Funds.

5/9/2009

Category: Hedge Funds, Video

Big Hedge Fund Money

Things are tough all over: > via NYT Top Hedge Fund Managers Do Well in a Down Year LOUISE STORY NYT, March 24, 2009 http://www.nytimes.com/2009/03/25/business/25hedge.html >

Category: Digital Media, Hedge Funds

Top Hedge Fund Earners

From Alpha Magazine via the NYT, comes the latest list of earners, in order of 2008 take home pay. Unlike the weasels who ran Merrill, Morgan, Bear & Lehman into the ground, then grabbed the cash and ran, these boys actually made their money the old fashioned way: They earned it, via outperformance. Read ‘em…Read More

Category: Hedge Funds, Markets, Trading

The Biggest A.I.G. Counterparties

> Source: A.I.G.’s Bailout Priorities Are in Critics’ Cross Hairs GRETCHEN MORGENSON NYT March 17, 2009 http://www.nytimes.com/2009/03/18/business/18aig.html

Category: Bailouts, Derivatives, Digital Media, Hedge Funds

Get Long Torches & Pitchforks

This guy Ritholtz is a firebrand . . . > > Source: Get Long Torches & Pitchforks: Bailouts “Absolutely Asinine,” Ritholtz Says Aaron Task Mar 10, 2009 11:15am EDT http://bit.ly/90lhV

Category: Bailouts, Credit, Derivatives, Hedge Funds

Backdoor Bailouts for Goldman Sachs?

My recent tirade against bailing out the hedge fund half of AIG makes much more sense when you consider who is actually getting all of the taxpayer largesse: Counter-parties of AIG, especially one Goldman Sachs. Some estimates have been in excess of $25 billion to GS. As AIG ran into the arms of the Fed…Read More

Category: Bailouts, Derivatives, Hedge Funds, Markets, Politics

Solvent Insurer / Insolvent Insurer

Forget the good bank/bad bank, I have an even bigger beef with this INSANE absurdity: Why are the taxpayers making good on hedge fund trades gone bad? I cannot figure that one out. When AIG first faltered, there were two companies jammed under one roof. One was a highly regulated, state supervised, life insurance company….Read More

Category: Bailouts, Corporate Management, Credit, Hedge Funds

Barron’s vs. Cramer, Part II

We add another chapter in the ongoing debate between Barron’s, the weekly paper that is sister to the WSJ, and James Cramer, the former hedge fund manager now turned pundit/CNBC star/game show host. The back and forth between CNBC and Barron’s amounts to an absurd debate over what Cramer’s stock picking record on the show…Read More

Category: Financial Press, Hedge Funds, Really, really bad calls, Television