Posts filed under “Hedge Funds”

Hedge Funds: Bad Investing Versus Lawlessness

This weekend, I found myself in the rather unusual position of defending hedge funds. Before I explain why that is so unusual, allow me to explain what I was defending them against.

Last week, Forbes released its annual score card of top-earning hedge fund managers. The usual gang was there: Soros, Tepper, Cohen, Paulson, Icahn, Simons, Dalio, Griffin, et. al. That clickbait scorecard — it worked on me — and led to a strident column from Gawker, bizarrely titled “Fund Managers Are the Biggest Gangsters of All.” Noting that the top 25 managers made a combined $24.3 billion in 2013, Gawker concluded, “The biggest thugs of all operate fully within the law.”

Which is completely and utterly wrong. The real gangsters were the “Banksters” who helped bring down the economy in the financial crisis, along with their lapdogs in Washington. To literally talk my own book, “Bailout Nation“: If you want to see truly thuggish behavior, look at three decades of radical deregulation, plus a gutting of enforcement mechanisms.

Continues here

 

 

Category: Hedge Funds, Investing, Really, really bad calls

Its all fun & games until someone loses an economy!

Source: Bianco Research This month, 1,865 pages of FOMC transcripts from 2008 were released to the public. Bloomberg studied the transcripts, finding on average about 25 references to laughter per meeting of the Federal Open Market Committee. This was almost half of the 45 giggles per FOMC meeting in 2007. Continues here

Category: Federal Reserve, Hedge Funds, Really, really bad calls

All Time Top 10 Hedge Fund Managers

Source: FT

Category: Hedge Funds, Investing, Trading

A Closer Look at Hedge Fund Under-Performance

  “The $2.5 trillion hedge-fund industry, whose money managers are among the finance world’s highest paid, is headed for its worst annual performance relative to U.S. stocks since at least 2005. The funds returned 7.1 percent in 2013 through November, according to data compiled by Bloomberg. That’s 22 percentage points less than the 29.1 percent…Read More

Category: Hedge Funds, Trading

Confessions of an Institutional Investor

Josh here – the other day I did a post about the amazing complexity and obsession with tail risk that’s caused so many professionally-managed investment pools to miss the market over the last few years (see: I don’t understand). Every general fights the last war, as they say, and a portfolio geared toward having a…Read More

Category: Asset Allocation, Hedge Funds, Really, really bad calls, Venture Capital

What Do Hedge Funds Spend On Regulatory Compliance?

Every now and then, I read an article that is factually accurate, technically correct — and utterly misleading. Items like this are “accurate but false” as they leave the reader with an impression of something that is incorrect. Because the world is nuanced and not black and white, the sum of many facts, statistics and…Read More

Category: Bad Math, Hedge Funds, Regulation

Skill vs Cost: The Myth of the Successful Money Manager

click for complete infographic
managed funds

Read More

Category: Digital Media, Hedge Funds, Mutual Funds

The Price of Generating Alpha

Alpha is a zero-sum game, according to David Villa of the State of Wisconsin’s Investment Board. Here he talks about how making the right errors leads to high returns.

Category: Hedge Funds, Video

Buffett: Federal Reserve Is Greatest Hedge Fund in History

Billionaire investor Warren Buffett compared the U.S. Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion.

Read More

Category: Federal Reserve, Hedge Funds, Video

Bill Ackman, CEO of Pershing Square Capital Management.

Category: Corporate Management, Hedge Funds, Video