From the category archives:

Basics

A Pen, a Telephone, and the SEC?

June 16, 2014

Hardly a day passes without news of one financial scandal or another in the financial services industry, particularly hedge funds, with SAC Capital Advisors, LLC being one of the higher profile examples. Colossal Fines The Security and Exchange Commission (SEC) has posted a list of cases on its website detailing the results of its efforts. [...]

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Hedge Fund Groupthink – Real or Imagined

June 2, 2014

The implication of some in the financial media is that hedge funds and hedge fund managers are demonstrating a groupthink or herd mentality with respect to the investments they are making. The argument, which seems ludicrous, may or may not have merit. Of course, conventional wisdom suggests this to be an improbable argument because hedge [...]

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Hedge Fund Jobs—Yes They Are Out There

May 19, 2014

Employment within the hedge fund industry is the primary goal of many college and university students. It is also a goal to which substantial numbers of people currently employed in the broader financial industry aspire. The appeal of the hedge fund industry is understandable. Even those achieving the nadir in the industry can make jaw-dropping [...]

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Hedge Funds Poised to Capture Their Share of $10 Trillion

May 8, 2014

Ten trillion dollars – the staggering sum estimated to reside within the community of potential retail investors, is soon to be unlocked by the Security and Exchange Commission’s rule changes – a direct result of the language in the JOBS Act of 2012. The global hedge fund industry currently has almost $2.5 trillion in assets [...]

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International Monetary Fund Drops the “D” Word

April 1, 2014

In its January 21st, 2014 update, the IMF hinted at the specter of deflation. The United States has only had two experiences with a deflationary economy; the first from 1870 to 1890 and the second in the 1930’s—in both cases, beyond the living memory of most Americans. Much of our 1930’s our experience with deflation [...]

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Drumming Up Business With a Different Drummer

March 18, 2014

Counting the number of hedge funds in the world is like trying to follow the Major League pitching career of Octavio Dotel. It’s incredibly complicated and subject to sudden change. The former Met-Astro-A-Yank-Royal-Brave-Northsider-Buc-Dodger-Rockie-Jay-Card-Tiger free agent might be running out of teams, though, but the tally of hedge funds just keeps growing. At Hedge Fund Research’s last [...]

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Perfect Pitch – How Not to Be Tone-Deaf to Investors

February 4, 2014

If you’re managing a hedge fund, it goes without saying that you’re off-the-scale smart when it comes to the math underlying investment analysis. You probably have a model that can pick winners, winnow out the losers and provide a return on capital that’s the envy of all your peers. What you need to understand is [...]

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An Element of Hypocrisy

October 1, 2013

SAC Capital Advisers, LLC has been embroiled in legal battles with the SEC for more than a decade, most revolving around the issue of insider trading. When the practice of insider trading among members of the Senate and Congress (including their staffers) received heavy media scrutiny in November, 2011; the Stop Trading on Congressional Knowledge [...]

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What to Do When Your Firm Heads South

September 17, 2013

Millions of Americans have lost jobs in the years following the economy’s implosion and it is an unquestioned blow to their self-esteem, finances and life in general. Americans are particularly vulnerable to the effects of job loss on self-esteem. Culturally, a person’s job defines who they are. This cultural tendency, although pervasive, is more prevalent [...]

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There Is No Market for Good News

August 23, 2013

Headlines are designed to attract the interest of readers. In the past, when print media was king, headlines sold newspapers (and of course they still do). Now, in a news world dominated increasingly by the Internet, headlines are still the best means of encouraging that all important “click.” Clicks are the modern equivalent of daily [...]

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