Daft Blogger

Why Hedge Funds Self Regulation Is Just a Myth

Daft Blogger — Mon, 14 May 2012 16:12:34 +0000

Recent research has shown that contrary to what most believe, high risk is not associated with higher profits. It is important to point that the study has taken into consideration the stock performance of over 400 global companies and has concluded that the most volatile generated 7-8% yearly losses for investors. On the other hand, [...] Related posts:

Chinese Banks Don’t Expand Because China Got No Banks

Daft Blogger — Sun, 13 May 2012 16:32:26 +0000

The crisis that has hit financial markets since 2008 has brought many financial institutions, banks, manufacturers and entire governments down to their knees. Considering all the Chinese chest thumping for dodging the 2008 crisis thanks to the superiority of the Chinese banking system, everyone in the West was expecting acquisitions of European and American banks [...] Related posts:

8 Years Old

Daft Blogger — Thu, 10 May 2012 15:05:14 +0000

With a story that verges into an excoriation of this society of jiving priorities, 8 years is probably one of the best foreign short movies I have seen this month. A self-production of emerging Italian artists, it is staged in Italy’s main financial hub, Milan. Amid the boy’s complaints about a stenchy train and his [...] No related posts.

Hedge Funds, Volatility and High Frequency Trading

Daft Blogger — Wed, 09 May 2012 15:02:30 +0000

Four years after the 2008 subprime crisis and three years since the subsequent Eurozone ailments began, hedge funds remain those unregulated firms with large amounts of capital under management. Whether event-driven, macro, equity long/short, statistical or activist in their strategy, economists keep questioning their ability to generate returns for investors. Research by KPMG showed that [...] Related posts:

CVR Is Icahnization’s Next Victim

Daft Blogger — Tue, 08 May 2012 17:31:25 +0000

Carl Icahn’s hedge fund announced today that it had effectively acquired a majority stake in CVR Energy. This was the result of a long confrontational campaign by Mr Icahn against CVR’s management in general and Jack Lipinski in particular. CVR’s shares were sold at $30 with a $7 premium should Icahn succeed in selling the [...] Related posts:

Hedge Funds: When the Manager Stops Guarding Investor’s Interest

Daft Blogger — Mon, 07 May 2012 17:04:34 +0000

Hedge fund managers promise to deliver positive returns on investments independently from market’s tide. They call this delivering alpha, where alpha stands for the information-processing capabilities of the manager, his connections and all the things which apparently allow him to take the right action at the right time. Alpha allows managers to predict a plunge [...] Related posts:

Basel III: Ending Banks’ Romance With Hedge Funds

Daft Blogger — Sun, 06 May 2012 19:58:35 +0000

With their billions of dollars under management, hedge funds constitute banks’ biggest clients. The main service banks sell to these behemoths od liquidity is known as prime broking. Traditionally, prime broking was about leveraging and cap intro. Leveraging is about lending managers money when they need them to maximize profits. Cap intro, on the other [...] Related posts:

The Ongoing War On Hedge Fund Regulation 2012

Daft Blogger — Sun, 06 May 2012 13:20:23 +0000

Immediately after the 2008 subprime crisis burst, special committees were set up by governments around the globe to assess the role hedge funds played in the financial crisis. In the US, the House Committee hearing on Oversight and Government Reform concluded that although hedge funds posed a risk for the economy in general they were [...] Related posts:

Why Leverage Is The Mother of All Evils

Daft Blogger — Sat, 05 May 2012 19:30:42 +0000

Hedge funds are, as I explained in my first post, capital-manager binomials. They are always looking for opportunities to make profit, a lot of profit. In fact, hedge fund managers are paid in relation to the profits they report. It is important to see that these managers screen the market for opportunities and once they [...] No related posts.

What You Must Know: Hedge Funds

Daft Blogger — Sat, 05 May 2012 16:35:53 +0000

Hedge funds are composed basically of two parts: the capital and the manager. The capital of a hedge fund comes from the contributions of many single investors who decide to bet on the skills of the manager and share in any rise in value of the fund. Theoretically, hedge funds are absolute return institutions, making [...] Related posts: