April 22, 2019

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 […]

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 […]

Lasry Boldly Goes Where Few Men are Going: Europe

The Queen's Guard marching in England, a country with a safer risk profile for hedge funds like Avenue Capital

Distressed hedge fund manager, Marc Lasry, founder of Avenue Capital, is known for fishing in dangerous waters. Whether it’s debt of a company in bankruptcy or a falling country’s sovereign bonds, Lasry has made a fortune for his investors through his savvy investing. Described as “adventurous” by fellow financiers, Lasry boldly goes where few men […]

Trian Tries on Lazard for Size

Trian Partners is bullish on Lazard shares, whose headquarters are Rockefeller Center.

I’d want to own a legendary boutique investment bank. In fact, I can, because Lazard (pronounced “Luh-Zahrd”) went public in 2005 and shares cost $26. But one hedge fund, Trian Partners, wants to own Lazard more than I do (or has more money) because they recently disclosed a 5% stake in the bank. The announcement […]

The Black Swan Swims with the Fishes

The Godfather

When one of the most successful hedge fund managers blows up, the investment world takes notice. Victor Niederhoffer is one of the legends of Wall Street but had two funds completely collapse. Even today, with the recent $2 billion loss by J.P. Morgan, the focus is on risk management. That’s where Nassim Taleb comes in. […]

Return of the Mortgage-Backed Security

Low-income housing, like this one in Toronto, was a prime target for bets against the mortgage market. Now those same underlying securities may be undervalued.

How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans. That’s how Michael Lewis partly described the beginning of the 2007 financial crisis. In his book “The Big Short”, Lewis chronicles how poor-quality loans were bundled and sold as mortgage-backed securities, or MBS for short. He does a […]

Apple Juices Up the Gains of the Biggest Hedge Funds

Apple's inclusion in the biggest hedge funds's basket of stocks has juiced up their returns.

The stock market is on a tear since the beginning of the year. Apple has dominated the headlines by trouncing Wall Street estimates. Its stock has risen 34% in 2012 increasing its market capitalization to over $500 billion. Fortunately for hedge fund managers, Apple makes up some of their biggest stock holdings. Stephen Taub of […]

Baupost Group Founder Between a Rock and Hard Place

A proposed limestone quarry in Ontario, like this one in Virginia, puts the Baupost Group founder between a rock and a hard place with local residents.

Seth Klarman runs the 11th-largest hedge fund with $24 billion under management. He’s not being conservative with that tidy sum under his care. Klarman wants to transform 2,300 acres of Canadian farmland into a limestone mine writes Scott Cendrowski in Fortune. The people of Melancthon, Ontario, however, raise environmental, health, and aesthetic concerns. They say […]

It’s Time for Hedge Fund Investors to Know Their Options

The hectic Chicago Board Options Exchange trading floor is not the only place hedge fund investors can learn about options.

Ah, the masters of the universe – hedge fund managers. They get paid to manage money often using complicated financial instruments or knowing a particular market better. One market that can seem more complicated than stocks and bonds is the options market. Investors can arm themselves with knowledge so they know what their managers are […]