From the category archives:


Hedge Funds Are Not Imploding

November 23, 2015

The performance of the S&P 500 is on a par with real ten-year Treasury rates yet, many financial reporters prefer to focus on hedge fund performance, going so far as to suggest they are imploding which, by definition, means a sudden and complete failure. While it is true that not every hedge fund develops and [...]

read more…

65 Million Reasons Bill Gross Is Wrong About a Fed Rate Hike

November 10, 2015

Bill Gross has spent the past several months beating the drum for a rate hike. His reasons for taking this position are fairly obvious. Mr. Gross is in the bond market. Many of those favoring the status quo also have ulterior motives, so please understand…this is no condemnation of Mr. Gross’ position on the subject [...]

read more…

Hedge Funds Take a Lickin’ but Keep on Tickin’

October 28, 2015

Warren Buffett’s celebrated bet that the S&P 500 will outperform a portfolio of funds of hedge funds springs to mind in the wake of Berkshire Hathaway’s recent $400 million haircut as a result of Wal-Mart’s share-price decline. Although the Wal-Mart loss was a stinging one, it fell short of the $600 million plus loss Berkshire [...]

read more…

Hedge Funds – Beware Yellen’s “X” Factor

October 12, 2015

It is almost universally accepted that the FOMC has only a brace of tools with which to manage U.S. economic activity, quantitative easing (QE) and establishing the fed funds rate. Janet Yellen and her FOMC have demonstrated over the course of the past several months that a third mechanism exists; for lack of a better [...]

read more…

Will Interval Alternatives Accomplish what Liquid Alternatives Could Not?

September 30, 2015

Hedge funds have endured the slings and arrows of multiple critics, including presidential contenders on both sides of the aisle, yet they remain the investment platform of choice for institutional investors and high net worth individuals. This fact is not lost on the small investor who, unable to meet the definition of a qualified investor, [...]

read more…

Investors, Refugees and Economies Collide at Hedge Fund Junction

September 15, 2015

The human tsunami of refugees created by ISIS’ unprecedented and unchecked rise in the Middle East may prove to be a greater barrier to hedge fund gains than the on-again-off-again FOMC rate hike. Any FOMC rate hike would likely impact hedge funds with equity strategies first and, one could argue, with greater negativity than funds [...]

read more…

Hedge Funds and Third Quarter Market Jitters

September 3, 2015

As the scoreboard signals the final minutes of the third quarter, mayhem breaks out on the field of play. It isn’t football, basketball, soccer or hockey; it is the equity markets. The Play by Play On December 23rd, 2014, the DJIA closed above 18,000 for the first time, which, coincidentally, marked the 101st anniversary of [...]

read more…

You Can Whistle While You Work

August 18, 2015

Rooted in the American culture is a certain level of disdain for those who bite the hand that feeds them. Snitching on a friend, co-worker or neighbor is widely viewed as un-American or, at the very least, disloyal. The extent to which this contempt applies to employees ratting out employers is open to debate—or was [...]

read more…

The Corporate World Reacts to Hedge Fund Activism

August 6, 2015

The past several months bears witness to a dramatic rise in aggressive hedge fund activist attacks. This activism is not directed solely toward small, weak or poorly managed companies as one might expect. On the contrary, large, respected, successful enterprises are prime targets. Examples include Amgen, Sony, Proctor & Gamble, DuPont and Qualcomm to cite [...]

read more…

Hedge Fund Health: a Mid Year Check Up

July 22, 2015

By any measure, the first six months of 2015 has been a wild ride. The uncertainties swirling around the potential “Grexit”, the on-again, off-again specter of an FOMC rate hike, quantitative easing by the European Central Bank, China’s comparatively sluggish economy and stagnant oil prices represent a few of the numberless variables hedge funds have [...]

read more…