November 18, 2018

The Hobbit and Economics

Smaug's gold

Frances Woolley of Worthwhile Canadian Initiative, a Canadian economics blog, presents an entertaining, short, and informative piece on The Hobbit and economics. The dragon, Smaug’s, hoard of gold is reminiscent of some hedge fund managers’ own stockpiles. Smaug the dragon is typically viewed as a fiscal phenomenon, depressing economic activity by burning woods and fields, […]

Hedge Fund Titans Bill Ackman vs. Daniel Loeb, Round 2

Ingemar Johansson and Floyd Pattersson 1959

Call it Hedge Fund Titans Bill Ackman vs. Daniel Loeb, Round 2. The two managers are squaring off publicly over a stock, Herbalife (HLF). Juliet Chung at The Wall Street Journal explains the feud. Mr. Loeb’s hedge fund disclosed Wednesday it owns an 8.2% stake now valued at $350 million in nutrition-supplements company Herbalife Ltd. […]

Is Tory Burch Going Public?

After reports of new investment firms' stakes in Tory Burch, it's likely the company will go public soon.

Hedge funds may want to get in now. Two investment firms disclosed ownership following a lawsuit settlement. With the success of the Michael Kors IPO, investors are hungry for a fast-growing retail company. Is Tory Burch going public? Clare O’Connor of Forbes describes what we know so far. You heard it here first: 2013 will […]

SeaWorld Puts Stephen Schwarzman Under Glass

The Lisbon Oceanarium

This week’s big IPO was an interesting one. After a dearth of offerings following Facebook’s, the private equite firm, Blackstone is taking SeaWorld public. The theme park’s parent, Busch Gardens, was acquired three years ago by Blackstone for $2.3 billion. Since then the firm has increased revenue at the parks while paying itself $610 million […]

Are Hedge Funds Good Guys or Bad Guys?

Are hedge fund managers good guys or bad guys?

Who says you can’t change world events? Tell that to Paul Singer, a “soft-spoken” hedge fund manager in New York. Singer’s Elliott Management is among some investor hold-outs in Argentina’s debt restructuring. Although recent news has centered around Greek debt and the hedge funds involved in the hold-out there, there is a much older battle […]

Hedge Funds Get Worthless Research

The Crystal Ball by John William Waterhouse

If hedge funds get worthless research, why would they pay so much for it? Hedge funds are brokerage houses’ best clients. SAC Capital, for instance, is known to pay some of the highest trading and brokerage fees. In return, they expect the best equity research on the street. Goldman Sachs and other prime brokers often […]

Hedge Fund Startup Is Riding the Social Media Wave

An iPhone screen with social media icons

Institutional Investors should have known better than to invest in Facebook’s IPO. Despite the stock’s comeback since its poor start, institutional investments own only 19% of the shares outstanding (vs. 67% for Apple). Internet companies are dominating the news and one hedge fund startup is riding the social media wave. Tom Wyman has years of […]

It Takes a Village to Raise a Portfolio Return

The Green Mountains, the location of Ted Cronin's unique family office

George Soros recently turned his hedge fund into a family office. One reason he did is because family offices are often more free to run their businesses with a greater degree of freedom. Less oversight means more discretion in investment decisions. Barron’s Alexander Eule asks Ted Cronin for his best advice for families heading into […]

Do Paulson and Soros Have the Golden Touch?

George Soros, at the 2011 Munich Security Conference, has increased his funds' exposure to gold.

Maybe I should buy gold. After all, the dollar’s value is decreasing. Well, I’m not alone in my interest in gold investing. Two esteemed hedge fund managers have signed on big-time. George Soros and John Paulson are both putting their funds’ capital to work through buying exposure to gold’s rise. Do Paulson and Soros have […]

What’s on Warren Buffett’s Reading List?

Warren Buffett has some reading homework for his fellow investors.

One might not think of Warren Buffett as the stereotypical hedge fund manager. But I’m going to start including him in my posts. Here’s why: Warren Buffet started investing his portfolio well before hedge funds became a household term. Warren Buffett amassed approximately a 24% annual return since 1964, probably beating out every hedge fund […]