A reflection on the newly released trailer for the forthcoming Paramount movie The Big Short, with Christian Bale front and center as Michael Burry. Brad Pitt shows up, too.
Media Coverage of Hedge Funds
BATS now proposes to define spoofing in an elaborate and narrow two-part manner. An investor, commenting to the SEC, accurately notes that this is a good deal different from the statutory definition, or from a definition endorsed recently in another context by BATS itself.
As regular readers of this blog may recall, I have found much to admire in the writings of Nassim Nicholas Taleb. So I am happy that he had decided to put some distance between himself and a recent claim that Universa made $1 billion when bad news from China shook the world's markets in late August.
Not even Schrodinger blamed the reporters for market irrationality. Saying out loud, "Hey, this cat is dead," doesn't kill the cat.
Guest columnist Don Steinbrugge on why hedge fund AUM is set for an increase over the course of the next 12 months.
Larry Fink is "deeply worried" that the combination of share repo with high-yield debt is "one of the reasons why we have a below trend-line economy. We're not investing in the future as much as we should." Carl Icahn, predictably, has a very different view of what ails us.
Trafigura has done quite well from the decline in crude oil prices in recent months. So well, in fact, as to throw a harsh light on a story that appeared in The New York Times in December 2013.
Much of the ubiquitous talk of the short-sightedness of nasty activist investors or traders is simply confused, analytically sloppy. It is a sort of confusion likely to have negative consequences to the extent that investors/traders themselves come to take it seriously.
Faille is struck by a brief passage in the recent Nortel decision (the Delaware side of the Delaware/Ontario concord over allocation) that suggests the degree to which the United States dominates the patent-granting as well as the patent-litigating world. Like what the U.K. is for defamation....
The tear-jerker ending to a famous Broadway musical comes to Faille's mind as he contemplates the latest twist in the struggle over DuPont's board.
Guest columnist Donald Steinbrugge, CFA, looks at the bad rap hedge funds have gotten and talks about why it's not deserved.
The success of Wynn's lawsuit would have chilled free speech by short sellers. So let us take a moment to celebrate its quick demise at the hands of Judge Orrick. As a general rule, though, when a plaintiff quotes an expression from a transcript that, in fact, is immediately preceded by the word "not," and the plaintiff leaves the "not" out of the quote ... things are knotty.
The story on the front page of The Wall Street Journal, about the Dendreon/Provenge investigations, focuses on trading in Dendreon stock over a three week period, beginning with the date of an e-mail sent out on June 7th, 2010.
The great thing about short sellers has always been that -- if they're good -- it's because they have a keen nose that can smell a boiler room. If they are open about what they're doing, they can also serve as a valuable red light for others in connection with overblown enthusiasms. Don't be the bag holder.
Guest columnist Don Steinbrugge looks at why allocators continue to invest in hedge funds, even when the media thinks they shouldn't.
Michael Lewis portrays Aleynikov, the Russian born coder convicted of two counts of theft in 2010 and imprisoned, then released by decision of an appeals court two years later, as a central figure in this dramatic tale about high-frequency trading. Aleynikov is not one of the bad guys, as such: but he is a self-blinkered tool of the bad guys. Some sympathy is extended: not much.
Delaware's governor has nominated Leo Strine for the state supreme court. With that in mind, we review some of the highlights of Strine's career at the Court of Chancery especially as they concern clashes between corporate managers one the one hand and activist investors on the other.
Two academics had the nerve to question a thesis dear to the heart of David Kocieniewski of The New York Times. So he struck back.
Judge Rakoff has hit a nerve with his contention that criminal cases in connection with the late mortgage derivatives bubble aren't being brought in large part due to "the government's own involvement in the underlying circumstances that led to the financial crisis."
Facile parallels notwithstanding, neither the argument Druckenmiller made at Sohn nor any other good reasons that may now exist for shorting the Aussie have a lot to do with the case against the pound in 1992. That tug-of-war occurred in a unique context, not here replicated.
One take-away from David Stockman's new best selling book is that the phrase "hedge fund" may well be on its way beyond descriptive significance. In the public realm, a "hedge fund" is now as much a metaphor as is a "Trojan horse." It is becoming a metaphor for any institution's failure to hedge.
“It was quite convenient to blame the Hedge Funds. They were an easy target, in that they were super-rich, a lot of them were American, and they were presented as bad people. They were blamed for what was happening to our banking system, which in reality was complete rubbish.”--Kate Walsh, Sunday Times, 2010.
One of the long-term trends that the hedge fund industry, and many others, face is the fact that the new media have unpredictable and sometimes unsettling consequences for many ways of doing business, including ways of finding alpha. The case of Barclays v. Fly on the Wall illustrates some of those consequences.
"Bernie" is back in the headlines, squawking from the jailhouse about how the banks and others should have seen his scheme for what it was - and actually may have. The broader question is whether suspicions about Madoff's bogus strategy would have made a difference.
Study quantifies media biases regarding hedge funds and proposes way for hedge funds to exploit themJul 13th, 2010 | Filed under: Academic Research, Media Coverage of Hedge Funds, Today's Post
Hedge funds and the mass media have always had a love/hate relationship (with emphasis on the "hate" part). But it turns out that an analysis of media word choices - and the choices of words in funds' own press releases - may contain valuable information.
A new report on the challenges faced by the hedge fund industry reveals some somewhat positive news: that hedge funds weren't the renegade, levered up, ready-to-destroy-the-global-financial-markets types that many believed.
The administrator in charge of distributing the frozen assets of Lehman Brothers Holdings Inc. announced last week that it had struck a deal to return some $11 billion to creditors. But how exactly are those assets being valued?
Earlier this week a widely-read columnist provided a wonderful example of the challenges faced by those who wish to ban hedge funds - a lack of hard data.
Were Credit Default Swaps of symptom or a cause of AIG's downfall? Was AIG really a "hedge fund"? These questions and more are addressed in a new paper by the traffic cop in the "intersection of law and finance".
The so-called "D-Day" is here once again. With about 45 days left until the end of Q1, market watchers turn an eye toward hedge fund redemptions as a possible explanation for all that ails markets.
When we read some hedge fund headlines, we are forced to ask ourselves a critical question: WTF? (that's "Whither the facts...")
Now everyone from pensions to governments to legitimate hedge funds are in the Ponzi game. Given this, we guess it shouldn't be that hard for the SEC to rack-up the score.
Barton Biggs says the hedge fund industry isn't coming to an end after all. What if he's right?
Back in the old days (like, in August), shutting a "redemption gate" used to be a form of punishment. Now it's more like "tough love".
What faces the asset management after the dust settles? Hopefully, a sober and renewed examination of alpha across all investments - not a renunciation of it.
There's no question that it's rough seas ahead for hedge funds. But the industry will weather this storm better than many think.
The acquisition of Reuters by Thomson sounded the death knell last week for one of the industry's first online portals.
Politicians have been doing it for years. But now journalists have begun to switch teams - joining the very hedge funds on which they used to report.
What's the difference between the hedge fund industry and Tom Hanks' character in the movie "Castaway"? Only one is clinging to hope.
A popular columnist says hedge funds might be the "next shoe to drop" as a result of the credit crunch - prompting one chapter of AIMA to speak out.
Canada’s National Post reports that the FBI is now warning of hedge fund fraud (“FBI Warns of Hedge Fund Fraud“). But in actuality, FBI Director Robert Meuller gave a 2,000 word speech last week in which “hedge fund” appeared only once – after a lengthy discussion corporate fraud, public corruption, insider trading, mortgage fraud and […]
A widely-syndicated column about the 130/30 "fad" misses the mark and sets the stage for years of public confusion regarding short-extension strategies.
There is little debate that top hedge fund managers make astronomical amounts of money. But are such amounts actually that new? If not, why are they an issue now?
The closest thing hedge fund managers have to a global trade association is apparently fed up with reading how its members are at the root of all that is evil.
It's deja vu all over again this month as one early-reporting database pronounces that hedge fund assets - at least in one category - shrank last month.
It's Halloween and you know what that means: spooky stories of haunted hedge funds and private equity slashers. This year's tale is presented by the London Daily Telegraph.
Two articles this week aim to provide a "balanced" view of 1X0/X0 funds. One because its analysis is dispassionate and one because it tries its darndest to create controversy.
The New York Times concludes that there is little risk of a dot-com-style implosion of the hedge fund industry. We generally agree with this assertion. But recent hedge fund IPOs add a new dimension that now gives us pause.