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
Getting off the dime is the most important piece of any successful business launch. Pulling the trigger is the hardest thing for even the bravest of entrepreneurs. And it is hard, agonizingly hard, but it’s what separates those who do from those who don’t. Over the last ten years, I’ve
Happy days are here again: The hedge fund industry is here to stay. Reports of its demise have been highly over-reported. Hang on tight, because before we all know it, many new funds will be starting as investor demand increases. I predict that 2011 – is going to be the
Finally, the hedge fund industry has won, one! The recent news that New York- Governor Paterson (D) isdropping the tax proposal on hedge fund managers who work in the Empire State but live elsewhere is welcome news to the industry. The Governor in his infinite wisdom seems to have decided
The extended volatility in the markets has caused hedge fundmanagers around the globe to post losses, to buy treasuries and, in some cases, to put out the “gone fishing” sign. It would appear that many of these so-called “Wizards of Wall Street” just can’t figure out how to make money
The recent news that the so-called Financial Reform Bill is out of committee and ready for a vote once the replacement for late Senator Robert Byrd is sworn in – has allowed Wall Street, Hedge Fund Managers and Capitalist everywhere to breathe a massive sigh of relief. For those of
