Posts filed under “Hedge Funds”

Greenlight Capital’s David Einhorn on Bloomberg Television

Greenlight’s David Einhorn appeared on “In the Loop” with Betty Liu and Jon Erlichman. He said that too-big-to-fail sentiment curbs concessions and that he is not looking at the jobs story when he’s deciding on an investment right now. He also said Apple is a premium opportunity and that a St. Joe buyout would be would be “very tough


Greenlight Capital’s David Einhorn on Bloomberg Television. Einhorn appeared on “In the Loop” with Betty Liu and Jon Erlichman.


Category: Hedge Funds, Video

Asness on Mixing Value with Momentum

The AQR founder and manager on AQR Global Equity’s process and the difficulty of momentum investing through the downturn.

By Kathryn Young| 6-24-2010 12:55 PM

Category: Hedge Funds, Technical Analysis, Video

David Gerstenhaber was one of the first “Tiger Cubs”, a term for hedge fund managers who started on their own after having worked at Julian Robertson’s legendary Tiger Investment Management.



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Category: Hedge Funds, Video

QOTD: Whiff of an Investigation . . .

Quote of the Day: “If I get even a whiff of an investigation, I want to get out before the next guy, especially if I know they have illiquid stuff or I don’t know what they have. Everyone’s nightmare is to get stuck with the stuff in the basement.” -Head of a fund of funds,…Read More

Category: Hedge Funds, Legal

Open Thread: FBI, SEC Gunning for SAC ?

The WSJ is reporting the FBI raided the Connecticut offices of two hedge funds amid insider-trading case. Marketwatch reports that the firms — Diamondback Capital Management and Level Global Investors — were spinoffs from SAC capital. This which leads to the obvious question: Is the SEC chasing the big dog (Stevie Cohen), or was this…Read More

Category: Hedge Funds, Legal

Pop-Quiz: Terms of Trade

Cassandra Does Tokyo is a former hedge fund manager and ex NY Trader, who is now living abroad.


Terminology is important but often abused. Some employ it to obfuscate the truth. Others to legitimize something that oughtn’t be. I doubt this Pop Quiz will ever be given to MBA students but I reckon it’s worthy of a go….

Instructions: Choose the Word, Phrase or Answer that best describes its preceding passage:

1. It’s nearing the end of the fiscal quarter. The CFO is concerned that leverage ratios are too high. You’ve located some friendly (reasonably-rated) counterparties who’ve more cash than investment opportunities and who are happy to take the other side of temporary financing trades that will reduce ratios to levels that won;t offend analysts, provided you guarantee the counterparty they will make their spread and not lose money. This is termed:

(a) Balance Sheet Reporting Optimization
(b) Window-dressing
(c) Lipstick on a Pig
(d) Repo 105 (tnx WT!)
(f) Rather Illegal
(g) Bigger (unearned) Bonuses All-Around (Again)
(h) All the above

2. You are the senior manager of an Equity Trading desk at a large Investment Banking firm. Amongst your activities, you act as agency broker for customer flow, employing some algorithms that fill customer agency orders at the prevailing best bid or best offer. In addition, your high-frequency trading desk, using it’s co-located servers, market-maker status and memberships on multiple-venues and dark-pools, has tools that allow your desk (with a very high-degree of certitude) to execute inside the spread. Many of your customers give you discretion (assuming execution risk) yet, you always fill customer orders at the prevailing best-bid or offer – always keeping the spread achieved on internalization of orders for The House . This is termed:

(a) Advanced Customer Facilitation Algorithms
(b) A conflict of interest
(c) Great business (if you can get it)!!
(d) Stealing and Questionably ethical
(e) The funder of your coveted house in the Hamptons
(f) Within the letter of the law but not the spirit
(g) All of the Above

3. You started an FX bucket shop that offers an electronic trading platform and extremely high leverage to retail clients. The platform gives the impression you are executing their trades in a a large central and open marketplace. You use all manner of advertising to entice the punters in. Initially, of course, you did execute their trades in the marketplace in order to hedge your risk, but you found that the life expectancy of the average small-time retail FX punter to be measured not far beyond nano-seconds, and that they are, en masse, usually wrong. As a result, you’ve stopped “hedging” and now more or less take the other side of all their risk, despite little regulation, oversight or capital adequacy. This situation is termed:

(a) Optimal Use of Scarce Risk-Capital Resources
(b) Dead clever
(c) The logical thing to do
(d) “a Bonnie Situation” (*)
(e) Less than ethical
(f) An accident waiting to happen
(g) disingenuous for not adequately disclosing the credit risk of acting as principal
(h) Eponymously…The Sting
(i) All the above
(*=”Bonnie Situation” as seen in Pulp Fiction)

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Category: Hedge Funds, Humor, Regulation

SALT Conference Wrap Up

This was a terrific conference. Mad props to Anthony Scaramucci & Skybridge for a top notch show. I really enjoyed my panel — Austan Goolsbee is a very interesting guy — moderate, intelligent, sharp. FCIC vice chair Bill Thomas was fascinating in the green room (but practically filabusted on stage!). (Faber is always a pro)….Read More

Category: Hedge Funds, Psychology

Paulson & Co Investor Letter

Paulson Letter

Category: Hedge Funds, Think Tank

The Magnetar Trade

Former WSJ reporter Jesse Eisinger teamed up with author and reporter Jake Bernstein at They spent 7 months investigating a series of hedge fund trades made against subprime mortgages, CDS, etc. The result is this thorough detailed analysis of how this took place:  The Magnetar Trade: How One Hedge Fund Helped Keep the Bubble…Read More

Category: Bailouts, Credit, Derivatives, Hedge Funds, Real Estate

New Broadway Tune: Bet Against The American Dream !

This video is utterly hysterical (and perhaps in ways more than the way its writers intended): Toxic assets get the full Broadway musical treatment. Gee, I wonder if by the time the hedge funds that made money betting against subprime mortgages become the subject of a Broadway showtunes (even if its only NPR) if its…Read More

Category: Contrary Indicators, Hedge Funds, Humor, Music, Real Estate