Posts filed under “Trading”

Hedge Fund Assets

Another interesting graph from Mike Panzner:

click for larger chart

Hedgeass

Hedge fund assets, as a percentage of total assets under professional management, have nearly tripled: 

"While many have commented on the explosive growth of hedge fund investing, the attached graph offers a bit more perspective on the numbers.

Since December 31, 1998, based on data from Hennessee Group LLC and the Investment Company Institute, hedge fund assets under management have risen from 2.36% to 6.45% of worldwide mutual fund net assets (as of the end of 2004).

That an increase of over 170% (and that’s not taking into account the leverage that many hedge funds have access to). Any way you cut it, that is a number not to be taken lightly."

While its never "different this time,"  some of the cards in the deck have been reshuffled, and it would be foolish to ignore that. This is definitely one of the factors impacting the new shuffle. If you are looking for a another reason to explain the market’s bipolar behavior — up, down, up, down — this is as good as any.

Category: Markets, Trading

Watching the SPX & Earnings

Category: Earnings, Markets, Trading

Chart of the Week: NYSE Member Firms’ Client Margin

Category: Markets, Trading

Margin Calls and Behavior Shift

Category: Markets, Trading

Oil Top Sets up Next (Last?) Market Leg Up

Category: Commodities, Markets, Trading

Are Fixed Income Markets as Wild as Equities?

Category: Markets, Trading

Modern Art Market Superheats

Category: Finance, Markets, Trading

VIX Needs a Friend

Category: Markets, Trading

Ten Commandments of Trading

Category: Trading

Ed Jones: Worse than you thought . . .

Last month, Jim Cramer ripped Edward Jones a new one; While I agreed with what he said, I didn’t bother to follow up because I assumed Ed Jones had come clean.

Apparently not.

From today’s WSJ:

"Edward D. Jones & Co. received $82.4 million in secret payments from seven mutual-fund firms in the first 11 months of 2004, through a lopsided fee structure that in some cases gave the brokerage firm more compensation for selling poorly performing funds than for selling stellar performers.

The disclosures were posted yesterday, on Jones’s Web site as required by its $75 million agreement to settle regulatory charges that it failed to adequately disclose the payments to investors. They are by far the most detailed figures ever made public on the industry practice of mutual-fund companies paying brokerage firms to induce them to sell their products, an arrangement known as revenue sharing. Unlike front-end sales commissions, which are widely disclosed to consumers, revenue sharing has been largely secret."

That’s pretty egregious behavior. I used to think well of Edward Jones as a firm. Non mas. . .

 

Here’s Cramer’s comments:

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Category: Markets, Trading