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It’s very clear that the one lesson that investors all over the world learned from the credit crisis and market turmoil over the last two-and-a-half years is that markets don’t always rise. Many investors, sophisticated or not, before 2008 believed that what went up continued to go up. Well, many

This just in – hedge funds are important liquidity providers… The Financial Stability OversightCouncil wrote in a draft report that without hedge funds in the market, well the markets might freeze. It seems that these folks figured out that hedge funds provide liquidity when other market participants sit on the

This just in – Bernie Madoffknew who what when during his thievery. Yawn. The last few days the media have been having a field day covering Madoff’s revelations as told to The New York Times reporter Diana Henriques. Her story, which consisted of material from an interview and email exchange

Earlier this week, hedge funds filed 13-F reports detailing their significant holdings for the period ended December 31. The information from the filings is headline-grabbing, After all, knowing who owned what when is crucial to creating a diversified portfolio. Click here to read the story. And while I’m sure that

The shorts are coming, the shorts are coming, or at least information aboutshort positions is coming. France, best known for its capitalist tendencies and wine, has put in place a new regulation that requires investment managers – i.e., hedge fundmanagers– to report their short positions. The idea is to help

The recent arrests in the insider trading scandal have made me think of the mafia adage: Never speak when you can nod, never nod when you can wink. In 2011, the updated version is never email when you can text; never text when you can speak; never speak when you

That’s right, folks, the news is not good for purveyors of “hedge fund replication” vehicles. The data seem to indicate that these so-called alpha generators for the masses are really nothing more than, well, any other traditional long-only product. Read more here. Well, I hate to say it, but I

Another day, another hedge fund, or, in this case, more than a dozen hedge funds that are involved in the insider trading scandal. The news seems quite bleak. It appears that these so-called Wizards of Wall Street are nothing more then a bunch of people who play a very expensive

The recent news that New York Mets’owners Fred Wilpon and Saul Katz usedBernie Madoff as their banker du jour is funny and sad at the same time. To be frank, I have never liked the Mets, particularly after the 1986 World Series when they beat my beloved Red Sox, but

Hedge funds and other “alternative” investment vehicles are about to go mainstream as a result of Dodd-Frankand the Financial Stability Council. Today the SEC voted to introduce a proposal to require managers with north of a billion in assets under management to report portfolio information. Managers will now be required

These days, news about the hedge fund industry is either positive or negative. Either the press is writing story after story about the insider trading scandal or the how a manager is attacking a board of directors or it’s writing stories about how assets keep flowing into hedge funds from

The smart money seems to be dumping gold according to a recent report in Bloomberg News. Hedge fund managers are systematically reducing their positions in theprecious metal – simply put they are taking profits. According to Bloomberg, manager’s have reduced the number of long positions by over 9 percent for

Insider trading is all the rage, or at least most of the news, in the hedge fund industry these days. More than a year into this mess, the flames of the scandal continue to burn bright. Regardless of what happens with asset flows, performance or new fund launches, all people

The prime brokerage industry is getting smaller.HEDGEAnswers has learned that a mid-Atlantic based-broker dealer, has decided to exit the prime brokerage business. The company has not gone public but our source says the announcement is just days away. The news will send funds that do business with the firm scrambling

I know that I have not posted in a while and I apologize. Things have been going crazy over the last few weeks and I haven’t had the time to sit down and write. Today, however, I seem to have plenty of time and so I’m putting down my final

The broadcast and print media over the last week or so have been filled with stories of a massive investigation by the feds into the who, what, where, when, why and how investment managers are trading on inside information. Names have been named, the hunt is on and before the

Gold! That’s right folks all that glitters on the minds of hedge fund managers’ is goldaccording to a recent piece of news on the “Wizards of Wall Street”. Click here to read. Yesterday it was funding lawsuits, today it is gold, and tomorrow maybe it will be General Motors? Hedge

Hating hedge funds has become easy. First we had the credit crisis, then we had the insider tradingscandals, now we have lending money to those who can’t afford their legal bills. Click here to Read It is clear to me that hedge funds are destined to be the punching bag

It is really sad that the hedge fundindustry has been once again hit by news of insider trading. Click here to read a story. However, these sorts of charges and investigations have become common place in the hedge fund industry and all around Wall Street in the wake of the

Last week the election, this week the news that the mayor thinks Congressis dumb, next week who knows… You can’t make this stuff up. You can read the comments by Mayor Bloomberg here. One thing is for sure, at next week’s, HEDGEAnswers Launch Series Conference Call on Wednesday, the 17th

Last night’s victory by the Republican Party is the direct result of voter frustration. The people are frustrated with the tax and spend ways of theDemocrats and believe that by bringing two-party rule to the district – some semblance of order will be restored across the land. People believe that

Just a quick note… Dateline Washington, D.C., Treasury Secretary Timothy Geithner is mad as hell at the way France seems to be bullying the E.U. in regards to hedge funds regulation and is not going to take it anymore. Mr. Geithner has written to French economic minister Christine Lagarde warning

Take a look at the stories below. Each provide a glimpse of what is happening right now in the hedge fund industry both in the US and abroad. Hedge Funds post big gains in September: According to Bloomberg, hedge funds had one hell of a September as benchmark for U.S.

Many of the questions that constantly come up during theHEDGEAnswers conference calls, as well as from readers ofmy books, are about choosing a service provider. Hedge fund managers, both new and old, seem to think that just because someone offers a service to the hedge fund industry, well, they are

It seems that Europeans can just not agree on what to do with the hedge funds. France’s finance minister, Christine Lagarde, is expected to say no to a plan by the E.U. to create a license or passport for hedge funds at this week’s meeting in Brussels of European finance

The news that D.E. Shaw & Company is laying off 10 percent of its workforce is the talk of the town today. All the major financial networks and print publications lead with the story today. Read The Times coverage here. My question is who cares? Well, I guess the ten

That markets rise and fall is one thing we know for sure – the other thing we know for sure is that hedge funds are here to stay. That’s right: The demise of the hedge fund industry has been highly overstated. New funds are starting up, assets are pouring in

Markets work when they are liquid – without liquidity -well – we all know what happens. Flash crash or not, it is questionable if high frequency traders (really computers) and the hedge funds they work for are the reason for the massive dip back in May. However, Washington wants to