June 27, 2017

How to Beat Argentina in a Staring Contest

Thierry Henry, who had a famous handball in 2009

Hedge funds have just given us a primer on how to beat Argentina in a staring contest. Today the U.S. Supreme Court ordered Argentina to pay holdout debt holders from its 2001 default, including Elliott Management, among others. Ken Parks, Nicole Hong, Brent Kendall and Matt Wirz explain the repercussions in the Wall Street Journal. […]

Malaysia Airlines: You’ll Find More Success Flying a Magic Carpet Singing, “Icahn Show You the World…”

Malaysian Airlines in the early years

The Malaysian airline disappearance is dominating the headlines. Where is that plane, anyway? Well, perhaps the airline company and others can take a cue from the growing trend of successful activist investors’ results. Carl Icahn is the most notorious of the bunch and has the track record to back up his requests. If he had […]

Hedge Funds Need an Oil Change

Future hedge fund manager?

Today’s Wall Street Journal says hedge funds need an oil change. Some of the best and the brightest got caught up in the trade going the wrong way on them. CHRISTIAN BERTHELSEN, JULIET CHUNG and HARRIET AGNEW write: A wrong-way bet on global oil prices has hit some of the crude market’s most high-profile investment […]

SAC Capital Traders Found Guilty

Before "Man of Steel" and even before SAC Capital was started, juries have been finding defendants guilty throughout the universe.

SAC Capital has been all over the news recently. Besides the art scene, the hedge fund’s manager, Steve Cohen, makes every attempt to avoid the press. The firm settled with the SEC for $500 million related to insider trading allegations. In December, the New York Times had the headline: “SAC Capital Traders Found Guilty.” It […]

Hedge Funds with the Wrong Kind of Indians

Much like Columbus, some hedge funds greeted the wrong kind of Indians.

Hedge Funds with the Wrong Kind of Indians are addressed in Anita Raghavan’s new book, “The Billionaire’s Apprentice,” an account of the insider trading scandal surrounding Galleon Group. The Wall Street Journal‘s Stewart Pinkerton gives a good summary so you don’t have to read the whole thing. I give you a summary of the summary […]

Hedge Funds Living in the Past

Living in the Past

All hedge funds have to study the history of the markets to notice possible patterns in the future. (Though past performance is no guarantee of future results.) Hedge funds living in the past may see trends others miss. Barron’s Eric Uhlfelder reports: Which hedge-fund strategies are working and which aren’t? Fixed-income-related plays continue to set […]

Argentina Gets Their Own Man of Steel in Hedge Fund

Man of Steel

The only thing Argentina does better than default on its debt payments is find a representative to save them. Argentina gets their own Man of Steel in hedge fund, reports The New York Times‘s Gretchen Mogenson. Gramercy Funds Management is not exactly a household name in the investing world. But in recent weeks it has […]

Gun Control News Makes Hedge Funds Unload

Houston Gun Show

The nation no longer has to worry about guns. Following mass shootings last year, gun control dominated the news. Some managers must have felt the heat because they divested of investments in gun companies. The New York Times, known for their unbiased political stances, basically ran the headline, “Gun Control News Makes Hedge Funds Unload.” […]

How to Avoid the Next Madoff

Bernard Madoff

“Madoff with the Money.” It’s one of the worst puns I’ve heard but it’s one of many book titles about Bernie Madoff and his scandal that robbed thousands of people of billions of dollars. There’s a lot of interest there. Barron’s has timeless advice for a question many hedge fund investors have: How to avoid […]

What’s the Outlook for Hedge Funds in the Year 2013?

The waters look murky for hedge funds in 2013, especially SAC. Pictured is SAC manager Steve Cohen's reported $8 million artwork, a shark in a tank of formaldehyde.

The market’s direction is anyone’s guess. Hedge fund managers are supposed to add alpha, or value. Their goal is to make better picks than the general market (or their respective index), minimize risk, and thus provide a higher risk-to-reward profile for investors. In 2012, hedge funds that reported their performances returned less to investors than […]