Media Coverage of Hedge Funds

Thoughts about Latest Insider-Trading Scandal

Oct 30th, 2014 | Filed under: Media Coverage of Hedge Funds, Today's Post

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.


Terwilliger’s Legal Troubles: Give Mark Cuban a Cigar

Aug 7th, 2014 | Filed under: Alpha Strategies, Media Coverage of Hedge Funds, Regulatory, Today's Post

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.


Why are Hedge Fund Assets Reaching All-time Highs?

May 12th, 2014 | Filed under: Alpha Hunters, Asset allocation, Institutional Investing, Media Coverage of Hedge Funds, Performance, Analytics & Metrics, Today's Post

Guest columnist Don Steinbrugge looks at why allocators continue to invest in hedge funds, even when the media thinks they shouldn't.


Thoughts on Lewis and Flash Boys

Apr 8th, 2014 | Filed under: Algorithmic and high-frequency trading, Media Coverage of Hedge Funds, Today's Post

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.


Chancellor Leo Strine is ‘Moving on Up’

Jan 13th, 2014 | Filed under: Legislation/Court rulings, Media Coverage of Hedge Funds, Today's Post

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.


Causality in Commodity Prices: The Debate Gets Personal

Jan 7th, 2014 | Filed under: Commodities, Media Coverage of Hedge Funds, Today's Post

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.


Finance, Fraud, and Still-Recent Memories

Dec 18th, 2013 | Filed under: Derivatives, Media Coverage of Hedge Funds, Today's Post

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."


The Mere Whisper of the Name ‘Soros’

May 15th, 2013 | Filed under: Currencies, Forex, Media Coverage of Hedge Funds, Today's Post

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.


Hedge Funds as Metaphor: And Not in a Good Way

Apr 22nd, 2013 | Filed under: Book review, Hedge Fund Industry Trends, Media Coverage of Hedge Funds, Today's Post

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.


Hedge Funds & the Global Economic Crisis: Willing Culprits or Easy Scapegoats?

Oct 11th, 2012 | Filed under: Media Coverage of Hedge Funds, Today's Post

“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.


Old News (but still timely): Federal Common Law Torts Don’t Exist

Jul 6th, 2011 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds, Today's Post

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.


Three split-strikes and you’re out

Feb 21st, 2011 | Filed under: Media Coverage of Hedge Funds, Today's Post

"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 them

Jul 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.


Hedge funds: Not the juiced-up, ready-to-destroy-financial-markets types many believe

Jun 9th, 2010 | Filed under: Media Coverage of Hedge Funds, Today's Post

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.


Cold Snap: What’s a “frozen” hedge fund asset really worth?

Jan 3rd, 2010 | Filed under: Hedge Fund Operations and Risk Management, Media Coverage of Hedge Funds, Today's Post

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?


Columnist argues hedge funds should be “regulated out of existence.” Time for a reality check.

May 21st, 2009 | Filed under: Academic Research, Featured Post, Media Coverage of Hedge Funds, Today's Post

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.


CDS Guilt Trip

Apr 1st, 2009 | Filed under: Academic Research, Institutional Investing, Media Coverage of Hedge Funds, Today's Post

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".


More mystical dates

Feb 13th, 2009 | Filed under: Media Coverage of Hedge Funds, Today's Post

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.


Newsreel: Who’s writing these headlines?

Feb 11th, 2009 | Filed under: Media Coverage of Hedge Funds, Today's Post

When we read some hedge fund headlines, we are forced to ask ourselves a critical question: WTF? (that's "Whither the facts...")


Ponzipalooza

Jan 11th, 2009 | Filed under: Media Coverage of Hedge Funds, Today's Post

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.


Signs of Hope

Nov 16th, 2008 | Filed under: Media Coverage of Hedge Funds, Today's Post

Barton Biggs says the hedge fund industry isn't coming to an end after all. What if he's right?


Stigma of redemption gates fading fast

Nov 3rd, 2008 | Filed under: Media Coverage of Hedge Funds, Today's Post

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".


Leaving Lake Wobegon

Oct 13th, 2008 | Filed under: Media Coverage of Hedge Funds, Today's Post

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.


If hedge funds are “heading for the rocks”, it’s to rescue long-only castaways

Oct 2nd, 2008 | Filed under: Media Coverage of Hedge Funds, Today's Post

There's no question that it's rough seas ahead for hedge funds. But the industry will weather this storm better than many think.


HedgeWorld Through the Ages

Aug 17th, 2008 | Filed under: Media Coverage of Hedge Funds

The acquisition of Reuters by Thomson sounded the death knell last week for one of the industry's first online portals.


Media Insana-ty?

Aug 14th, 2008 | Filed under: Media Coverage of Hedge Funds

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.


Are hedge funds really “clinging to hope”?

Jul 8th, 2008 | Filed under: Media Coverage of Hedge Funds

What's the difference between the hedge fund industry and Tom Hanks' character in the movie "Castaway"? Only one is clinging to hope.


Respected columnist warns on hedge funds, prompting response from AIMA chapter

May 27th, 2008 | Filed under: Hedge Fund Industry Trends, Hedge Fund Regulation, Media Coverage of Hedge Funds

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.


More media malarkey

Apr 30th, 2008 | Filed under: Media Coverage of Hedge Funds

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 […]


Media turns hostile: 130/30 now “dubious” “overblown” “faddish” “hype”

Apr 21st, 2008 | Filed under: 130/30, Media Coverage of Hedge Funds

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.


Is high hedge fund compensation really that new?

Apr 17th, 2008 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

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?


AIMA comes out swinging

Apr 8th, 2008 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

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.


The assets are falling! The assets are falling!

Nov 11th, 2007 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

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 for some media outlets…

Oct 31st, 2007 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

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 ways to present “balance” in 130/30 discussion

Oct 25th, 2007 | Filed under: 130/30, Media Coverage of Hedge Funds

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.


New York Times Dispels Hedge Fund Bubble Mythology – Nearly

Jul 8th, 2007 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

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.


Bridgewater gives “alpha-centric” a thumbs-up

Jun 4th, 2007 | Filed under: Institutional Investing, Media Coverage of Hedge Funds

"Alpha centric" turns out to be more than just a goofy term used by us as a placeholder until something better comes along.


New York Post latest to butcher hedge fund risk story

May 7th, 2007 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

In a lesson on how rumors start, The New York Post reports this week that the Fed has issued an "unusual warning". This would be a great story, if only it was true...


War of the Worlds (1938 version) unfolds on CNBC

May 6th, 2007 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

On Wednesday, May 2, Reuters ran a story about a New York Fed report on hedge fund correlation. But it appears that Reuters and several of its customers were a little to hasty going to print.


Business Week hedge fund story is so “2005″

Apr 26th, 2007 | Filed under: Investment Management Fees, Media Coverage of Hedge Funds

Alpha Male takes issue with Business Week's apples to oranges comparison of hedge fund and long-only fees.


Bubble, Bubble Hedge Funds In Trouble

Nov 1st, 2006 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

“Trouble is bubbling up for two more hedge funds. First, hot on the heels of Amaranth Advisors meltdown…” Institutional Investor reports on a couple of “troubled” hedge funds.  But although they are compared to Amaranth, which lost a king’s ransom, neither fund actually lost that much money for investors.  In fact, the only ones who […]


Bursting Another Sort of Bubble

Oct 27th, 2006 | Filed under: Hedge Fund Industry Trends, Media Coverage of Hedge Funds

By: Allan Sloan, Newsweek Published: October 30 Issue Newsweek’s Allan Sloan, “The Cruncher”, offers up some pretty weak evidence this week that a bubble exists in hedge funds: “Day after day, I hear about hedge funds’ growing power—we’re up to almost 9,000 funds with $1.225 trillion in assets, according to Hedge Fund Research, from about 3,600 […]