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The Man Who Solved the Market — how Jim Simons built a moneymaking machine
November 1, 2019 | | Financial Times | Robin Wigglesworth

The Man Who Solved the Market: How Jim Simons Launched the Quant Revolution, by Gregory Zuckerman, Portfolio, RRP$30/£20, 384 pages

Jim Simons looked to math and computers as ways to eliminate the emotional ups and downs of investing. “I don’t want to have to worry about the market every minute. I want models that will make money while I sleep.”
algorithms  books  finance  hedge_funds  James_Simons  massive_data_sets  mathematics  moguls  quantitative  Renaissance_Technologies  talent_spotting  winner-take-all 
11 weeks ago by jerryking
London Stock Exchange lays $27bn bet that data are the future
July 28, 2019 | | Financial Times | by Arash Massoudi, Richard Henderson and Richard Blackden.

The London Stock Exchange Group more than 300 years old, is trying to get back on the front foot with a plan for its most ambitious acquisition, one that will shape the direction of the group for years to come. It is the most striking demonstration yet of the charge among exchange operators into the business of supplying the data that is at the heart of markets....The LSE on Friday confirmed a Financial Times report that it was in talks to buy data and trading venue group Refinitiv for $27bn including debt, from a consortium led by private equity group Blackstone. If an agreement is reached for a company best-known for its Eikon desktop terminals, it would transform the LSE into a provider of financial market infrastructure and data with the scale to take on US exchange industry heavyweights Intercontinental Exchange and CME Group as well as Michael Bloomberg’s financial information empire.

“This would be a bold move in the shift among exchanges away from the matching of buyers and sellers and into the business of selling information,” said Kevin McPartland, head of market structure research at consultancy Greenwich Associates. “Data are so valuable and so is having the network of traders and investors to access that data — that’s all at play here.”......The deal would also be a defining moment for the LSE’s chief executive, David Schwimmer, just a year after the relatively unknown former Goldman Sachs banker was parachuted in to steady the ship. Its scale will bring considerable risk in execution alongside the need to convince LSE shareholders that taking on Refinitiv’s $12bn of debt will prove worth it.

Industry analysts see the strategic logic of the deal for the LSE, best known for its UK stock exchange and derivatives clearing house LCH. While revenue from initial public offerings can be more volatile, spending by everyone from asset managers to hedge funds on financial data and the analytical tools to make use of it has been going in one direction. It hit a record $30.5bn last year
.......“What’s happened is exchanges have found it more difficult to find ways of generating revenue in their traditional businesses,” “You can deliver data so easily now, there is voracious appetite from anyone making investment decisions so they can get an edge.”.....As well as winning over LSE shareholders, any deal is likely to face a lengthy period of antitrust approvals.

“There is a wider market concern about exchanges and data vendors combining,” said Niki Beattie, founder of Market Structure Partners. “The global world of data distribution is presided over by a small number of players who have a lot of power.”
asset_management  Blackstone  Bloomberg  bourses  data  financial_data  hedge_funds  inflection_points  IntercontinentalExchange  investors  LSE  mergers_&_acquisitions  M&A  Refinitiv  stockmarkets  Thomson_Reuters  tools  trading_platforms  turning_points  defining_moments 
july 2019 by jerryking
White men run 98% of finance. Can philanthropy bring change?
June 16, 2019 | Financial Times | by Rob Manilla.

Q: How do you achieve change at the decision making level in the finance industry when diversity moves at glacial pace?
asset_management  diversity  endowments  hedge_funds  finance  foundations  Kresge  meritocratic  philanthropy  private_equity  real_estate  results-driven  social_enginering  structural_change  under-representation  white_men  women 
june 2019 by jerryking
Spy tactics can spot consumer trends
MARCH 22, 2016 | Financial Times | John Reed.
Israel’s military spies are skilled at sifting through large amounts of information — emails, phone calls, location data — to find the proverbial needle in a haystack: a suspicious event or anomalous pattern that could be the warning of a security threat.....So it is no surprise that many companies ask Israeli start-ups for help in data analysis. The start-ups, often founded by former military intelligence officers, are using the methods of crunching data deployed in spycraft to help commercial clients. These might range from businesses tracking customer behaviour to financial institutions trying to root out online fraud......Mamram is the Israel Defense Forces’ elite computing unit.
analytics  consumer_behavior  cyber_security  data  e-mail  haystacks  hedge_funds  IDF  insights  intelligence_analysts  Israel  Israeli  Mamram  maritime  massive_data_sets  security_&_intelligence  shipping  spycraft  start_ups  tracking  traffic_analysis  trends  trend_spotting 
april 2019 by jerryking
A Man for All Markets by Edward O. Thorp
by Edward Thorp, a mathematician who applied his skills, from Las Vegas to Wall Street, from the blackjack tables to the world of hedge funds.
books  hedge_funds  Las_Vegas  mathematics  quantitative  Wall_Street 
march 2019 by jerryking
DE Shaw: inside Manhattan’s ‘Silicon Valley’ hedge fund
March 25, 2019 | Financial Times Robin Wigglesworth in New York.

for a wider investment industry desperately trying to reinvent itself for the 21st century, DE Shaw has evolved dramatically from the algorithmic, computer-driven “quantitative” trading it helped pioneer in the 1980s.

It is now a leader in combining quantitative investing with traditional “fundamental” strategies driven by humans, such as stockpicking. This symbiosis has been dubbed “quantamental” by asset managers now attempting to do the same. Many in the industry believe this is the future, and are rushing to hire computer scientists to help realise the benefits of big data and artificial intelligence in their strategies........DE Shaw runs some quant strategies so complex or quick that they are in practice almost beyond human understanding — something that many quantitative analysts are reluctant to concede.

The goal is to find patterns on the fuzzy edge of observability in financial markets, so faint that they haven’t already been exploited by other quants. They then hoard as many of these signals as possible and systematically mine them until they run dry — and repeat the process. These can range from tiny, fleeting arbitrage opportunities between closely-linked stocks that only machines can detect, to using new alternative data sets such as satellite imagery and mobile phone data to get a better understanding of a company’s results...... DE Shaw is also ramping up its investment in the bleeding edge of computer science, setting up a machine learning research group led by Pedro Domingos, a professor of computer science and engineering and author of The Master Algorithm, and investing in a quantum computing start-up.

It is early days, but Cedo Crnkovic, a managing director at DE Shaw, says a fully-functioning quantum computer could potentially prove revolutionary. “Computing power drives everything, and sets a limit to what we can do, so exponentially more computing power would be transformative,” he says.
algorithms  alternative_data  artificial_intelligence  books  D.E._Shaw  financial_markets  hedge_funds  investment_management  Manhattan  New_York_City  quantitative  quantum_computing  systematic_approaches 
march 2019 by jerryking
The Oracle of Boston - Seth Klarman
Jul 7th 2012 | Boston

A scanned version of “Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor” has been circulating around trading floors. One hedgie likens Mr Klarman's book to the movie “Casablanca”: it has become a classic......Mr Klarman still runs Baupost like a family office. He is extremely risk averse; his primary goal is not stellar returns but preservation of capital.......He has deliberately maintained a sticky investor base composed almost entirely of endowments, foundations and families, which understand his investment philosophy and will not redeem after a few negative quarters.
Boston  hedge_funds  investors  investing  margin_of_safety  Seth_Klarman  value_investing/investors  books  Baupost  family_office 
january 2019 by jerryking
How do hedge funds learn new industries quickly? - Quora
Quickly' is very subjective and remember funds(hedge,mutual,pension,etc) do not need to know everything about a industry only to understand the drivers of what moves the stock. That is a massive difference between how a student approaches learning and a analyst, analysts aren't trying to know everything only what can make them money.

Exceptional People
They are used to covering certain sectors some may come from the sell side and covered maybe 15-30 stocks or the buy side and covered 40-60 stocks. Regardless of where they came from they are used to tracking and getting alot of information very efficiently. They are also willing to put in long hours and read/study anything that is needed. After a while(if they don't burn out) they become masters are managing huge information bandwidth.

Tools/Data
For accounting and raw data there are plenty of tools. Bloomberg is quite widely used and with a few commands/clicks you can have a excel sheet with all the data you can want about a companies financials.

Sell side
If you have a large enough fund and relationships on the sell side then they'll do all they can to get you up to speed very quickly. The sell side will have a team of analysts covering a industry/sector your intrested in and if your a good client then they'll spend time and teach you want you want to know.

Reduce noise/Very focused:
Great analysts are masters are reducing the amount of noise that comes there way. They filter emails and calls like crazy so there are less distractions. If your ideas don't make them money they will ignore you(regardless of how smart you are). If they are really good they won't even open your emails if you have not proven you add value to them.
hedge_funds  ideas  discernment  filtering  learning_curves  noise  signals  Quora  new_industries  sell_side 
november 2018 by jerryking
Offering Inspiration and Advice, Real Vision Is HGTV for Hedge Fund Hopefuls - The New York Times
By Landon Thomas Jr.
Oct. 2, 2018

Real Vision offers a way to skip the traditional hedge fund path: slog away at an investment bank or a mutual fund, then settle down in Midtown Manhattan or Greenwich, Conn. For a modest fee, Real Vision will connect investors to a network of elite Wall Street analysts, traders and hedge fund managers, making it easier for novices like Mr. O’Dea to jump the line.

Raoul Pal, a former hedge fund executive who also worked at Goldman Sachs and runs an investment strategy service called Global Macro Investor, co-founded Real Vision. Since then, 20,000 people have signed up, paying $180 a year to hear directly from financial insiders.

It is a vibrant community with an average age of 38, which distinguishes it from CNBC and its more mature audience. Mixing the Netflix payment model with a cozy interview style, Real Vision offers to help upstart investors decode the mysteries of today’s markets. It features those insiders presenting their views in lengthy, explanatory videos: How to short China, the long-term opportunities in emerging markets and the best way to play Bitcoin, among others.
hedge_funds  television  inspiration  subscriptions  investors  explanatory 
october 2018 by jerryking
Paul Singer, Doomsday Investor
August 27, 2018 | The New Yorker | By Sheelah Kolhatkar.

Paul Singer, ,
The head of hedge fund Elliott Management, has developed a uniquely adversarial, and immensely profitable, way of doing business.

Bush had co-founded Athenahealth, a platform that digitizes patient medical records and billing claims for hospitals and health-care providers, in 1999, and he had built it into an enterprise with more than a billion dollars in revenue. One of the firm’s marketing taglines was that it freed doctors and nurses to spend more time doing what they loved—practicing medicine—and less time on paperwork. Athena served more than a hundred thousand health-care providers...... Paul Singer, the founder of Elliott Management and one of the most powerful, and most unyielding, investors in the world. Singer, who is seventy-three, with a trim white beard and oval spectacles, is deeply involved in everything Elliott does. The firm has many kinds of investments, but Singer is best known as an “activist” investor, using his fund’s resources—about thirty-five billion dollars—to buy stock in companies in which it detects weaknesses. Elliott then pressures the company to make changes to its business, with the goal of improving the stock price.....Hedge funds, especially activist hedge funds, are established users of private-investigation services.....The investor acknowledged that Bush was far from perfect, and said that “there is a role for activists to hold managements accountable.” But the investor worried that the focus on the bottom line would undermine the innovative spirit that had made Athena successful. “.....The idea that companies exist solely to serve the interests of shareholders—rather than also to serve workers, customers, and the larger community—has been dominant in the business world in the past thirty years. As the field of activist investing becomes increasingly crowded, many investors are going beyond their original mission of finding ailing or mismanaged companies and pushing them to improve. Instead, some have been targeting larger, financially prosperous companies, such as Procter & Gamble, Apple, and PepsiCo. ......Often, activists advocate for measures that drive up the stock price but can have negative effects in the future, such as the outsourcing of jobs, the elimination of research and development, and the borrowing of money to buy back a company’s own stock. The wisdom of these tactics has come under increasing scrutiny. Some of the most successful businesses to emerge in recent decades have staved off short-term pressures, forcing their investors to be patient with uncertainty and experimentation. The founder of Amazon, Jeff Bezos, wrote in an early investor letter that building something new “requires you to experiment patiently, accept failures, plant seeds, protect saplings.” ........Over time, this lack of long-term vision alters the economy—with profound political implications. Businesses are the engine of a country’s employment and wealth creation; when they cater only to stockholders, expenditures on employees’ behalf, whether for raises, job training, or new facilities, come to be seen as a poor use of funds. Eventually, this can result in fewer secure jobs, widening inequality, and political polarization. ..........Bush spoke about his last day in the office, when he had sobbed during his final address to Athena’s employees. He had also written a farewell letter. “I believe that working for something larger than yourself is the greatest thing a human can do. A family, a cause, a company, a country—these things give shape and purpose to an otherwise mechanical and brief human existence,” the letter read. “The downside about things that are larger than ourselves, of course, is that we who have the privilege of serving them ourselves are fungible. It is the fundamental definition. You can’t have the grace of the one without the other......Throughout our conversations, Bush returned to a theme that consumed him. He talked about how investors like Singer—financiers who take the assets built by others and manipulate them like puzzle pieces to make money for themselves—are affecting the country on a grand scale. A healthy country, he said, needs economic biodiversity, with companies of different sizes chasing innovation, or embarking on long, hard projects, without being punished. The disproportionate power of the Wall Street investor class, Bush felt, dampened all that, and gradually made the economy, and most of the people in it, more fragile.
distressed_debt  Elliott_Management  financiers  hard_goals  hard_work  hedge_funds  investors  long-term  patience  Paul_Singer  profile  shareholder_activism  Sheelah_Kolhatkar  time_horizons  vulture_investing  Wall_Street 
august 2018 by jerryking
Hedge funds fight back against tech in the war for talent
August 3, 2018 | | Financial Times | by Lindsay Fortado in London.

Like other industries competing for the top computer science talent, hedge funds are projecting an image that appeals to a new generation. The development is forcing a traditionally secretive industry into an unusual position: having to promote itself, and become cool.

The office revamp is all part of that plan, as hedge funds vie with technology companies for recruits who have expertise in machine learning, artificial intelligence and big data analytics, many of whom are garnering salaries of $150,000 or more straight out of university.

“A lot have gone down the Google route to offer more perks,” said Mr Roussanov, who works for the recruitment firm Selby Jennings in New York. “They’re trying to rebrand themselves as tech firms.”...While quantitative investing funds, which trade using computer algorithms, have been on the forefront of hiring these types of candidates, other hedge funds that rely on humans to make trading decisions are increasingly upping their quantitative capabilities in order to analyze reams of data faster.

The casual work atmosphere and flexible hours at tech firms such as Google have long been a strong draw, and hedge funds are making an effort to 'rebrand themselves' Besides the increasing amount of perks funds are trying to offer, like revamping their workplace and offering services such as free dry-cleaning, they are emphasizing the amount of money they are willing to spend on technology and the complexity of the problems in financial markets to entice recruits.

“The pitch is . . . this is a very data-rich environment, and it’s a phenomenally well-resourced environment,” said Matthew Granade, the chief market intelligence officer at Point72, Steve Cohen’s $13bn hedge fund.

For the people Mr Granade calls “data learning, quant types”, the harder the problem, the better. “The benefit for us is that the markets are one of the hardest problems in the world. You think you’ve found a solution and then everyone else catches up. The markets are always adapting. So you are constantly being presented with new challenges, and the problem is constantly getting harder.”
hedge_funds  recruiting  uWaterloo  war_for_talent  millennials  finance  perks  quantitative  hard_questions  new_graduates  data_scientists 
august 2018 by jerryking
The quant factories producing the fund managers of tomorrow
Jennifer Thompson in London JUNE 2, 2018

The wealth of nations and individuals is ever more likely to be influenced by computer algorithms as investors look to computer-powered quantitative trading strategies to generate returns. But underpinning those machines and algorithms are real people, namely the world’s sharpest mathematicians and data scientists.

Though not hard to identify, virtually every industry — and especially Big Tech — is competing with the financial world for their skills....Competition for talent means the campuses of elite universities have become a favoured hunting ground for many groups, and that the very best students and early career academics can command staggering starting salaries should they join the investment world......The links asset managers foster with universities vary. In the UK, Oxford and Cambridge are home to dedicated institutes established and funded by investment managers. Although these were set up with a genuine desire to foster research in the field, with a nod to philanthropy, they are also proving to be an effective way to spotting future talent.

Connections between hedge funds and investment managers are less formalised on US campuses but are treated with no less importance.

Personal relationships are important,
mathematics  data_scientists  quants  quantitative  hedge_funds  algorithms  war_for_talent  asset_management  PhDs  WorldQuant  Big_Tech 
june 2018 by jerryking
Pentagon Turns to High-Speed Traders to Fortify Markets Against Cyberattack
Oct. 15, 2017 7| WSJ | By Alexander Osipovich.

"What it would be like if a malicious actor wanted to cause havoc on U.S. financial markets?".....Dozens of high-speed traders and others from Wall Street are helping the Pentagon study how hackers could unleash chaos in the U.S. financial system. The Department of Defense’s research arm, DARPA, over the past year and a half has consulted executives at high-frequency trading firms and quantitative hedge funds, and people from exchanges and other financial companies, participants in the discussions said. Officials described the effort, the Financial Markets Vulnerabilities Project, as an early-stage pilot project aimed at identifying market vulnerabilities.

Among the potential scenarios: Hackers could cripple a widely used payroll system; they could inject false information into stock-data feeds, sending trading algorithms out of whack; or they could flood the stock market with fake sell orders and trigger a market crash......Among potential targets that could appeal to hackers given their broad reach are credit-card companies, payment processors and payroll companies such as ADP, which handles the paychecks for one in six U.S. workers, participants said.....The goal of Darpa’s project is to develop a simulation of U.S. markets, which could be used to test scenarios, Such software would need to model complex, interrelated markets—not just stocks but also markets such as futures—as well as the behavior of automated trading systems operating within them....Many quantitative trading firms already do something similar.......
In 2009, military experts took part in a two-day war game exploring a “global financial war” involving China and Russia, according to “Currency Wars: The Making of the Next Global Crisis,” a 2011 book by James Rickards. ....“Our charge at Darpa is to think far out,” he said. “It’s not ‘What is the attack today?’ but ‘What are the vectors of attack 20 years from now?’”
Pentagon  financial_markets  financial_system  vulnerabilities  DARPA  traders  hedge_funds  Wall_Street  hackers  books  rogue_actors  scenario-planning  cyber_security  cyber_warfare  cyberattacks  high-frequency_trading  pilot_programs  contagions 
october 2017 by jerryking
Bridgewater Founder Ray Dalio’s Next Investment
Oct. 13, 2017 | WSJ | By Alexandra Wolfe.

Ray Dalio, founder of Bridgewater Associates, believes in radical truthfulness. He lives by a mélange of maxims about being transparent and embracing reality. “Don’t filter.” “Don’t treat all opinions as equally valuable.” “Don’t ‘pick your battles.’ Fight them all.”

New book, “Principles: Life and Work,” a new 592-page tome about how to succeed. Truth is “the essential foundation for producing good outcomes.” He says it’s also the foundation on which he built Bridgewater, which manages $160 billion.
Ray_Dalio  Bridgewater  hedge_funds  values  truth-telling  transparency  tough_love  books 
october 2017 by jerryking
Ray Dalio and the Market’s Pulse
Sept. 24, 2017 | WSJ | By Andy Kessler

Has Ray Dalio lost the pulse? The founder of the $160 billion hedge fund Bridgewater Associates is all over the place spouting his management philosophy of radical transparency. .....The investment whiz lives and manages by a set of principles that employees have to memorize. ..... “Most problems are potential improvements screaming at you.” Or this reworked cliché: “While most others seem to believe that pain is bad, I believe that pain is required to become stronger.”.....Bridgewater is losing money this year. Through July its flagship fund is down 3%, while the market is up more than 10%. ......The core of investing is quite simple: Determine what everyone else thinks, and then figure out in which direction they are wrong. That’s it. No one tells you what they think. You’ve got to feel it. .....It’s all about figuring out what is priced into a stock right now. That’s the pulse of the market, the collective mind meld aggregated into stock prices. I know from experience this is the hardest part of running a hedge fund. You can find the greatest story ever, but if everyone already knows it, there’s no money to be made..... the pulse changes with each government statistic, each daily ringing of cash registers and satellite images taken of parking lots. That’s why stocks trade every day. Real-world inputs and the drifting pulse drive the psychotic tick of the stock market tape. ....How do you find that pulse? .....

It’s best to survey your own people......Dalio doesn’t care about employees’ opinions or ideas; he just wants to take their pulse to figure out what the market already knows. Or as he puts it: “The biggest mistake most people make is to not see themselves and others objectively.”....Too much capital is often a burden. There are only so many good investment ideas out there, and it’s late in this cycle.....“Truth—more precisely, an accurate understanding of reality—is the essential foundation for any good outcomes.” Here’s a truth: If Bridgewater has lost its mojo, Mr. Dalio would be smart to manage a much smaller pot of money rather than torture his employees.
Andy_Kessler  Ray_Dalio  Bridgewater  hedge_funds  investors  investing  biases  market_sentiment  pretense_of_knowledge  principled  transparency 
september 2017 by jerryking
Chinks emerge in the armour of prized malls
22 July/23 July 2017 | Financial Times | Miles Johnson.

A defining feature of the financial crisis was a group of hedge funds making vast sums by wagering against supposedly AAA-rated mortgage debt well before markets imploded in 2008.

Now some believe a similar story will play out for US shopping malls — that the most risky investments will end up being those that investors now believe to be the safest. Central to their premise is the idea that too much faith may be being placed in a classification system used for shopping malls that is little known outside of the real estate sector.....investors are also actively leaving the office and conducting field research.

In April researchers from a large US hedge fund travelled to the outer boroughs of New York to a shopping mall that is home to Apple and Armani among other retailers....To their surprise the researchers quickly came across a pop-up shop selling cheaply manufactured stuffed teddy bears and plastic toys. Two months later the store had disappeared....
The stock market has until recently appeared to believe that prime “A” malls are largely insulated from the pain being felt across a US retail sector being shaken by e-commerce.

Shares in Washington Prime, an operator of lower quality B and C classed malls, are down by half since the start of 2015. However, until recently shares in “prime” mall operators Simon Property Group and GGP had held up, underpinned by the belief that their A-quality malls in prime locations were safe from the challenge of online shopping.......Yet there is growing evidence to suggest that these prime malls, which have been treated by investors and lenders alike as rock solid bets in the face of the internet headwinds, are not as protected as once thought.

Shares in Simon Property, the largest Reit in America with a market value of $50bn, are down by almost 30 per cent over the past 12 months, having held up strongly to the middle of 2016. Short interest in Simon, which tracks the amount of shares hedge funds have borrowed to bet that its value will fall, rose to the highest level since the financial crisis last month, with bets worth more than $1bn.....The hedge funds wagering against the highest quality malls believe that the wider market will come to believe these A-quality malls are far more similar to lesser ranked ones. “This idea that there are these magic malls in America that are immune to secular change is a myth,” the US-based hedge fund manager says.

Some argue that the market under-appreciates that A class mall operators and B and C class mall operators all have very similar tenant bases, in spite of being in different locations. L Brands, the owner of lingerie chain Victoria’s Secret, is the largest single tenant for prime operator GGP, according to company filings.....it is also the biggest tenant for the lesser ranked CBL and second largest for Washington Prime.....Russell Clark of Horseman Capital notes the vulnerability malls have to the loss of single big brands, known as anchor tenants, with their departure often triggering a wave of rent loss with other tenants.

“Many tenants have a clause in their lease to reduce rents should an anchor close a store. Thus, even though the loss of rent due to an anchor closing is minimal, the knock-on effect of reduced rents from the remaining tenants is a serious concern,” he noted.....the hunt for opportunities to bet against quality malls outside the US. The share prices of Intu Properties and Hammerson, the UK’s largest publicly listed shopping centre operators, have not yet followed the falls seen in the shares of their largest tenants.
shopping_malls  commercial_real_estate  real_estate  MappedIn  mapping  hedge_funds  primary_field_research  pop-ups  store_closings  pretense_of_knowledge  illusions  under_appreciated  retailers  vulnerabilities  anchor_tenants  REITs  L_Brands  A-class  B-class  C-class  Victoria's_Secret 
july 2017 by jerryking
An Activist Investment in Whole Foods Exposes Shifting Power on Wall St. - The New York Times
APRIL 25, 2017 | NYT | By ALEXANDRA STEVENSON.

Neuberger Berman has eschewed its nearly 80-year-old tactic of playing nice (i.e. buy and hold stocks, sit back, and hope for the best), turning to the bare-knuckled world of activist investors made famous by the likes of Carl C. Icahn and William A. Ackman. Last year, as Neuberger Berman’s roughly $200 million investment in Whole Foods Market languished, the firm quietly approached some hedge funds and urged them to agitate for change at the high-end grocer. Two weeks ago, Jana Partners took up the fight......Neuberger Berman’s behind-the-scenes campaign to shake up Whole Foods is the latest example of a dynamic that is upending relations between public companies and the big investors that own their stock.....a reflection of the shifting balance of power on Wall Street....Traditional money managers in search of market-beating returns are demanding a seat at the table, turning to activists for help and even employing some hedge fund tricks of their own. And activists, once the black sheep of the investment world, are now accepted as regular, if meddlesome, investors. ....[Activist investors], she added, “[are an] important ‘check and balance’ on management that has lost its way.”....Neuberger Berman executives prepared an inch-thick presentation--a thorough critique--the kind of document usually produced by activists.....failures in how Whole Foods handled its brand development, and to what it said were customer service deficiencies and a poor strategy for distribution......Relations between institutional investors and activists have evolved in recent years, and it is not unheard-of for big investors to support activists who have set their sights on a high-profile company. ..... be careful of what you wish for, Neuberger Berman discovered that utilizing board seats on an underperforming portfolio company can be "expensive and time-consuming.”.....it is less common for an institutional investor to share its work on a specific target with activists in the way Neuberger Berman did with Whole Foods....There is even a term for the interplay: “R.F.A.s” or “requests for activism.”....Institutional investors do not make investments predicated on an activist showing up.
Wall_Street  money_management  shareholder_activism  beat_the_market  hedge_funds  Whole_Foods  Jana_Partners  Neuberger_Berman  institutional_investors  checks_and_balances  Carl_Icahn  William_Ackman  boards_&_directors_&_governance 
april 2017 by jerryking
An Insider-Trading Tale That Reads Like a Thriller - The New York Times
By ANDREW ROSS SORKINFEB. 7, 2017

“Black Edge: Inside Information, Dirty Money, and the Quest to Bring Down the Most Wanted Man on Wall Street,”
nonfiction  hedge_funds  Andrew_Sorkin  books  slight_edge  insider_trading  informational_advantages  Wall_Street  Preet_Bharara  SAC_Capital  Steven_Cohen  book_reviews  white-collar_crime  Sheelah_Kolhatkar 
february 2017 by jerryking
A Quiet Giant of Investing Weighs In on Trump
FEB. 6, 2017 | The New York Times | Andrew Ross Sorkin

In his letter, Mr. Klarman sets forth a countervailing view to the euphoria that has buoyed the stock market since Mr. Trump took office, describing “perilously high valuations.”

“Exuberant investors have focused on the potential benefits of stimulative tax cuts, while mostly ignoring the risks from America-first protectionism and the erection of new trade barriers,” he wrote.

“President Trump may be able to temporarily hold off the sweep of automation and globalization by cajoling companies to keep jobs at home, but bolstering inefficient and uncompetitive enterprises is likely to only temporarily stave off market forces,” he continued. “While they might be popular, the reason the U.S. long ago abandoned protectionist trade policies is because they not only don’t work, they actually leave society worse off.”

In particular, Mr. Klarman appears to believe that investors have become hypnotized by all the talk of pro-growth policies, without considering the full ramifications. He worries, for example, that Mr. Trump’s stimulus efforts “could prove quite inflationary, which would likely shock investors.”.....“The big picture for investors is this: Trump is high volatility, and investors generally abhor volatility and shun uncertainty,” he wrote. “Not only is Trump shockingly unpredictable, he’s apparently deliberately so; he says it’s part of his plan.”

While Mr. Klarman clearly is hoping for the best, he warned, “If things go wrong, we could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst.”...In his recent letter, he explained for the first time his decision to say something publicly. “Despite my preference to stay out of the media,” he wrote, “I’ve taken the view that each of us can be bystanders, or we can be upstanders. I choose upstander.”....How Mr. Klarman wants investors to behave in the age of Trump remains an open question. But here’s a hint: At the top of his letter, he included three quotations. One was attributed to Thomas Jefferson: “In matters of style, swim with the current; in matters of principle, stand like a rock.”
uncompetitive  Seth_Klarman  investors  hedge_funds  Donald_Trump  investing  ETFs  value_investing/investors  money_management  Andrew_Sorkin  countervailing  the_big_picture  nobystanders  Thomas_Jefferson  quotes  stylish  principle 
february 2017 by jerryking
When the Feds Went After the Hedge-Fund Legend Steven A. Cohen - The New Yorker
ANUARY 16, 2017 ISSUE
WHEN THE FEDS WENT AFTER THE HEDGE-FUND LEGEND STEVEN A. COHEN
Inside the government’s nearly ten-year battle against one of the most powerful men on Wall Street.
By Sheelah Kolhatkar
Wall_Street  Preet_Bharara  insider_trading  hedge_funds  SAC_Capital  Steven_Cohen  white-collar_crime  nonpublic  Sheelah_Kolhatkar 
january 2017 by jerryking
Hedge fund manager driven by a thirst for knowledge
December 10/11th, 2016 | Financial Times | Lindsay Fortado.

“I am always paranoid I’m not smart enough,” he said. “The biggest challenge in today’s world is that knowledge has increasingly become a commodity. How do you find the kernel of information, that anomaly that enables you to generate alpha?"
hedge_funds  United_Kingdom  HBS  slight_edge  anomalies  philanthropy  alpha  kernels  commoditization_of_information 
december 2016 by jerryking
Winton Capital’s David Harding on making millions through maths
NOVEMBER 25, 2016 | Financial Times | by Clive Cookson.

Harding’s career is founded on the relentless pursuit of mathematical and scientific methods to predict movements in markets. This is a never-ending process because predictive tools lose their power as markets change; new ones are always needed. “We have 450 people in the company, of whom 250 are involved in research, data collection or technology,” he says. That is equivalent to a medium-sized university physics department....Harding's approach to making money is to exploit failures in the efficient market theory...the problem with the EMT is that “It treats economics like a physical science when, in fact, it is a human or social science. Humans are prone to unpredictable behaviour, to overreaction or slumbering inaction, to mania and panic.”...The Winton investment system is based instead on “the belief that scientific methods provide a good means of extracting meaning from noisy market data. We don’t make assumptions about how markets should work, rather we use advanced statistical techniques to seek patterns in huge data sets and base all our investment strategies on the analysis of empirical evidence...Harding emphasises the breadth and volume of investments involved, covering bonds, currencies, commodities, market indices and individual equities. The aim is to exploit a large number of weak predictive signals, he says: “We don’t expect to find any strong relationships between data and the price of the market. That may sound counter-intuitive but if there are strong relationships, someone else is going to be exploiting those. Weak relationships are where we have a competitive advantage.” Weather strategies are one feature of Winton research, including analysis of cloud cover and soil moisture levels to predict the prices of agricultural commodities. Other important indicators, for which maths can uncover value not fully reflected in market prices, include seasonal factors and inventory levels across supply chains....When I ask Harding about the use of machine learning and artificial intelligence to guide investment decisions, he bristles slightly. “There is a sudden upsurge of excitement about AI,” he says, “but we have used techniques that would be described as machine learning for at least 30 years.”

Essentially, he says, quantitative investing, self-driving cars and speech recognition are all applications of “information engineering”....he heads off to a lecture by German psychologist Gerd Gigerenzer, who runs the Harding Centre for Risk Literacy in Berlin
communicating_risks  mathematics  hedge_funds  investment_research  financiers  Winton_Capital  physics  Renaissance_Technologies  James_Simons  moguls  quantitative  panics  overreaction  massive_data_sets  philanthropy  machine_learning  signals  human_factor  weak_links  JumpMath 
november 2016 by jerryking
Wall Street’s Insatiable Lust: Data, Data, Data
By BRADLEY HOPE
Updated Sept. 12, 2016

One of his best strategies is to attend the most seemingly mundane gatherings, such as the Association for Healthcare Resource & Materials Management conference in San Diego last year, and the National Industrial Transportation League event in New Orleans.

“I walk the floor, try to talk to companies and get a sense within an industry of who collects data that could provide a unique insight into that industry,” he said.....Data hunters scour the business world for companies that have data useful for predicting the stock prices of other companies. For instance, a company that processes transactions at stores could have market-moving information on how certain products or brands are selling or a company that provides software to hospitals could give insights into how specific medical devices are being used......A host of startups also are trying to make it easier for funds without high-powered data-science staffers to get the same insights. One, called Quandl Inc., based in Toronto, offers a platform that includes traditional market data alongside several “alternative” data....
alternative_data  conferences  data  data_hunting  hedge_funds  insights  investors  exhaust_data  market_moving  medical_devices  mundane  private_equity  Quandl  quants  sentiment_analysis  unconventional  unglamorous  Wall_Street 
september 2016 by jerryking
Steven A. Cohen’s Newest Bet: Do-It-Yourself Computer Traders - WSJ
By BRADLEY HOPE
July 27, 2016

Steven A. Cohen is betting as much as as $250 million that mechanical engineers and nuclear scientists can come up with market-beating mathematical models in their spare time. He's investing in a hedge fund launched by Boston investment firm Quantopian that provides money to do-it-yourself traders who come up with the best computerized investing methods, giving a share of any profits to the creators.

Mr. Cohen, chief executive officer of Point72 Asset Management LP, is also making an undisclosed investment in Quantopian itself through his family-office venture arm Point72 Ventures.

The billionaire’s new commitments are part of a broader push in the money- management world to embrace quantitative investing, which relies mainly on math-based models to bet on statistical relationships or patterns in stocks, bonds options, futures or currencies......Point72 Asset Management oversees the personal wealth of Mr. Cohen, his family and employees. It already has an internal team devoted to computer-driven trading strategies......Quantopian says it has 85,000 users signed up from 180 countries who have created more than 400,000 algorithms on the company’s free web-based platform. So far, the firm has only selected 10 of those to trade a few hundred thousand dollars on behalf of Quantopian. The platform is only for U.S. equities trading so far, but Quantopian plans to expand to other asset classes.
algorithms  quantitative  Wall_Street  Steven_Cohen  beat_the_market  hedge_funds  DIY  SAC_Capital  money_management  investing  Point72  asset_classes  family_office 
july 2016 by jerryking
Kevin Turner, Microsoft Executive, to Join Citadel Securities
JULY 7, 2016 |- The New York Times| by NICK WINGFIELD and ALEXANDRA STEVENSON.

A top Microsoft executive, Kevin Turner, is leaving the company to join Citadel Securities as its new chief executive, continuing a wave of executive departures of technology industry leaders to financial firms.

Mr. Turner, Microsoft’s chief operating officer, oversaw Microsoft’s large sales organization, but Microsoft said he would not be replaced. .....Several prominent Silicon Valley executives have been hired by hedge funds in recent years. Bridgewater Associates, the world’s biggest hedge fund, hired a former senior Apple executive, Jonathan J. Rubinstein, this year. Mr. Rubenstein, who earned the nickname “the Podfather” for his work leading Apple’s iPod team, joined Bridgewater as co-chief executive in May.

And Two Sigma Investments, a quantitative hedge fund based in New York, hired Alfred Spector, a senior executive at Google, to be chief technology officer last year.

Citadel Securities is owned by the billionaire Kenneth C. Griffin, who also founded a $25 billion hedge fund called Citadel. Mr. Griffin founded the hedge fund 25 years ago as a young graduate after successfully trading bonds out of his Harvard dorm.

In recent years, Mr. Griffin has made a big push into market, making and electronic trading with Citadel Securities, disrupting a business that was once the domain of banks. It also claims to have 35 percent share of daily retail stock trading in the United States.
Microsoft  Citadel  hedge_funds  CEOs  departures  resignations  appointments  brokerage_houses  Ken_Griffin  market_makers 
july 2016 by jerryking
A Reading List of Tell-Alls, Strategic Plans and Cautionary Tales in Finance - The New York Times
JULY 4, 2016 | DEALBOOK | Andrew Ross Sorkin

(1) “Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley,” by a former Facebook executive, Antonio García Martinez.
(2) “The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse” by Mohamed A. El-Erian, chief economic adviser at Allianz and chairman of President Obama’s Global Development Council.
(3) “Makers and Takers: The Rise of Finance and the Fall of American Business” Rana Foroohar
(4) “Originals: How Non-Conformists Move the World” Adam Grant
(5) Bloodsport: When Ruthless Dealmakers, Shrewd Ideologues, and Brawling Lawyers Toppled the Corporate Establishment” by Robert Teitelman,
(6) “Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism,” by Jeff Gramm, owner and manager of the Bandera Partners hedge fund and an adjunct professor at Columbia Business School.
(7) “Brazillionaires: Wealth, Power, Decadence, and Hope in an American Country” by the journalist Alex Cuadros.
(8) a biography of Alan Greenspan titled, “The Man Who Knew: The Life and Times of Alan Greenspan.” It is by the journalist Sebastian Mallaby, an adroit writer who also published a brilliant book on hedge funds several years ago, called “More Money than God: Hedge Funds and the Making of a New Elite.”
(9) “To Pixar and Beyond: My Unlikely Journey with Steve Jobs to Make Entertainment History” by Lawrence Levy, the former chief financial officer of Pixar.
Rana_Foroohar  books  booklists  summertime  Andrew_Sorkin  Pixar  Mohamed_El-Erian  hedge_funds  central_banks  finance  dealmakers  Silicon_Valley  Brazil  biographies  Adam_Grant  cautionary_tales 
july 2016 by jerryking
Hedge Funds Are the New Venture Firms - The New York Times
By ALEXANDRA STEVENSONAPRIL 6, 2016
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fin-tech  financial_services  hedge_funds  venture_capital 
april 2016 by jerryking
The humbling of Valeant’s Michael Pearson - The Globe and Mail
TIM KILADZE
The humbling of Valeant’s Michael Pearson
SUBSCRIBERS ONLY
The Globe and Mail
Published Tuesday, Mar. 22, 2016

What we’re left with: A “Canadian” company we should happily disown, and critical reminders that certain business rules should never be broken. Chief among them: Debt is never a problem until, suddenly, it is; markets will love you until, suddenly, they don’t; and the roll-up game, driven by endless acquisitions, is nearly impossible to sustain.....By slashing R&D spending costs, Mr. Pearson freed up cash flow to buy more companies – whose R&D departments were then gutted to repeat the same trick. To juice earnings, he acquired Ottawa-based Biovail in 2010, which came with a Barbados-based subsidiary. Valeant started ushering U.S. profits to offshore tax domiciles – marking the first-ever pharmaceutical tax inversion and sending its corporate tax rate to the mid-single digits.

To fuel acquisitions, Mr. Pearson borrowed tens of billions of $ of incredibly cheap debt. By mid-2015, Valeant had $31-billion (U.S.) in debt and paid over $1-billion a year in interest.

There were warning signs these bold acts would backfire. Last March, Warren Buffett’s inner circle started to inflict damage. At an investor meeting, Charlie Munger, one of the value investor’s best friends, said he was “holding his nose” by looking at Valeant, adding that the company “wasn’t moral.”

That cautionary message did little to deter two of Valeant’s top investors: the Sequoia Fund – which has ties to Mr. Buffett – and Bill Ackman’s Pershing Square Capital Management. Whatever criticisms were hurled at the drug maker, they stood by it, repeatedly stressing that they believed in Mr. Pearson. Their faith in him seemed nearly biblical. And because they showed resolve, hedge funds kept piling in – momentum investing at its very worst. By the end of June, nearly 100 of them had stakes in the drug maker........One of the best lessons from the global financial crisis was that everything became correlated when the U.S. housing market crashed. The same is true for Valeant. Investigations into its pricing policy made investors worry about revenue; worries about the income statement morphed into fears about balance-sheet debt; leverage woes prevented Valeant from borrowing more to fund future acquisitions.

The cynicism turned investors’ momentum strategy on its head.
Valeant  Bay_Street  CEOs  pharmaceutical_industry  Charlie_Munger  Warren_Buffett  M&A  boards_&_directors_&_governance  correlations  hedge_funds  Pershing_Square  William_Ackman  debt  R&D  cash_flows  roll_ups 
march 2016 by jerryking
Hedge Funds’ Idea Man - WSJ
By JULIET CHUNG
Jan. 4, 2016

The 54-year-old Brazilian immigrant is part of a larger ecosystem of consultants who sell their investment beliefs to hedge funds. The funds, hungry for returns or cheap hedges for their portfolios, get fresh ideas that comprise or inform their wagers. The consultants, in exchange, often expect to share in gains tied to their ideas, they and their clients said.....The ideas don’t always result in profits. ...Such arrangements make some veteran investors in hedge funds uneasy.

“If your manager’s renting a lot of ideas, you have to question the value-add they bring to the partnership,” said Chuck Bryceland of New York-based Bessemer Trust, which advises wealthy families and individuals on investments, including in hedge funds. “We want our people generating primary trade ideas and doing the primary work themselves.”
investment_advice  investment_research  ideas  Wall_Street  money_management  private_banking  hedge_funds  shareholder_activism  traders  exclusivity  idea_generation  value_added  financial_advisors  high_net_worth  Bessemer  Bessemer_Trust 
january 2016 by jerryking
Investors Find Ways to Indirectly Profit From Valuable Start-Ups - The New York Times
AUG. 9, 2015 | NYT | By KATIE BENNER.

Frank Timons and LeAnne Schweitzer, the co-founders of Pier 88, believe there is money to be made on this big gap between public and private company valuations. In their view, the public companies are such relative bargains that they will make great acquisitions for purchasers that want to better compete with upstarts like Airbnb. Then, when those publicly traded companies are snapped up — often for a premium of more than 50 percent — Pier 88 can profit from the bet.
investors  privately_held_companies  hedge_funds  start_ups  valuations  Airbnb 
august 2015 by jerryking
Boards getting better at battling activists - The Globe and Mail
JACQUELINE NELSON
Boards getting better at battling activists
SUBSCRIBERS ONLY
The Globe and Mail
Published Wednesday, May. 13 2015
hedge_funds  Bay_Street  boards_&_directors_&_governance  shareholder_activism 
may 2015 by jerryking
Hedge-Fund Magnate Robert Mercer Emerges as a Generous Backer of Cruz - NYTimes.com
APRIL 10, 2015 | NYT| By ERIC LICHTBLAU and ALEXANDRA STEVENSON.

Mr. Mercer, a reclusive Long Islander who started at I.B.M. and made his fortune using computer patterns to outsmart the stock market, emerged this week as a key early bankroller of Mr. Cruz’s surprisingly fast campaign start.

...Mr. Mercer does not have the name recognition of fellow Republican financiers like the Koch brothers or Sheldon Adelson, but he has spent more than $15 million since 2012 in support of conservative political campaigns and causes, donating to a number of candidates who had never even met him. ....Robert Mercer is discussed in “More Money Than God,” a book about the hedge fund industry by Sebastian Mallaby....Before joining Renaissance Technologies, Mr. Mercer, 68, worked at I.B.M.’s research center, where he specialized in computerized translation of languages.....When James H. Simons, the billionaire founder of the Renaissance hedge fund, hired Mr. Mercer in 1993, the company was more university campus than Wall Street firm. Mr. Simons, a mathematician and former code-breaker for the National Security Agency, brought in astronomers and physicists to analyze reams of data, using computer programs to search for patterns that could be used to inform trading decisions. Mr. Simons has been a major political backer of Democrats, donating $8.3 million in 2014.
hedge_funds  moguls  high_net_worth  Robert_Mercer  Wall_Street  Ted_Cruz  Renaissance_Technologies  books  Citizens_United  James_Simons  PACs 
april 2015 by jerryking
Approach with roses, not Tinder come-ons: Activist investors - The Globe and Mail
NIALL McGEE
Approach with roses, not Tinder come-ons: Activist investors Add to ...
SUBSCRIBERS ONLY
The Globe and Mail
Published Friday, Oct. 17 2014
shareholder_activism  hedge_funds  Bay_Street 
october 2014 by jerryking
Bill Ackman and His Hedge Fund, Betting Big - NYTimes.com
By ALEXANDRA STEVENSON and JULIE CRESWELLOCT. 25, 2014

“We certainly have to make bigger investments, that’s definitely true. But not riskier investments.” Asked about failures, like the Target bet, he sighed deeply. “Target was a bad investment,” he said, “but out of 30 investments, I don’t know of another investor with as high a batting average.”...Mr. Ackman’s role as an activist hedge fund investor is to persuade other shareholders that he knows how to run companies better than current management does. This involves research, argument and, perhaps most important, a sensitivity to how every pronouncement and gesture will be perceived....“I said, the next time I have a really good idea, I’m not going to listen just because someone is older than me.” Mr. Ackman continued, “It’s not going to stop me from going forward.”...His first foray into activist short-selling was in the spring of 2002, when he released a 48-page, scrupulously researched paper criticizing the management and reserve levels of the Federal Agricultural Mortgage Corporation....At Gotham, he learned that he needed research and a story. At Pershing, he perfected the skill of telling that story to an audience of shareholders, corporate directors and the news media.... he has spent $50 million just on research and legal fees for his campaign ...
William_Ackman  hedge_funds  storytelling  Communicating_&_Connecting  big_bets  shareholder_activism 
october 2014 by jerryking
U.S. junk-bond specialists behind Postmedia’s Project Canada - The Globe and Mail
JACQUIE MCNISH AND JACQUELINE NELSON
The Globe and Mail (includes correction)
Published Tuesday, Oct. 07 2014
Postmedia  investors  hedge_funds  distressed_debt  Paul_Godfrey  digital_media 
october 2014 by jerryking
3G Capital, the latest private equity darling - The Globe and Mail
Aug. 25 2014 | G&M | JACQUELINE NELSON.

“It is something that’s embedded in our culture is that we are going to continuously look for areas to find efficiencies and to operate our business in a smarter way,” said Josh Kobza, Burger King’s chief financial officer, discussing costs on a recent earnings call with analysts. “That’s another area that will continue to be focused on over the next few years, in trying to be the most efficient operator in our sector. And that is really how we think about driving underlying growth in our business and those are the big focuses for our model going forward.”
3G_Capital  cost-cutting  Berkshire_Hathaway  Burger_King  efficiencies  hedge_funds  private_equity  Tim_Hortons 
august 2014 by jerryking
The Most Important Question You Can Ask
APRIL 25, 2014 | NYT | By TONY SCHWARTZ.

The answer to “In the service of what?” is to add more value to the commons than we take out, and not to discount any good that we can do.

“We must not, in trying to think about how we can make a big difference,” said the children’s rights advocate Marian Wright Edelman, “ignore the small daily differences we can make, which, over time, add up to big differences that we cannot foresee.”

Personal accomplishments make us feel good. Adding value to other people’s lives makes us feel good about ourselves. But there is a difference. The good feelings we get from serving others are deeper and last longer. Think for a moment about what you want your children to remember about you after you’re gone. Do more of that.
work_life_balance  Tony_Schwartz  serving_others  hedge_funds  questions  slight_edge  legacies  values  life_skills  compounded  personal_accomplishments  foundational  cumulative 
april 2014 by jerryking
Pension Funds Sue on a Deal Gone Cold - NYTimes.com
February 24, 2014, 9:51 pm
Pension Funds Sue on a Deal Gone Cold
By RACHEL ABRAMS
Wall_Street  African-Americans  hedge_funds  litigation  Buddy_Fletcher  pension_funds 
february 2014 by jerryking
Wes Hall: From mail room clerk to Bay Street power broker
Jan. 30 2014 | The Globe and Mail | Doug Steiner.

Welcome to the full-combat world of activist investing. Wall Street agitators such as Bill Ackman, Barry Rosenstein and Carl Icahn, and a small but growing number of Canadians, such as Greg Boland of West Face Capital, want underperforming executives to raise shareholder returns fast, or get out of the way. And they come armed with detailed business makeover plans, lawyers, investment bankers, PR reps and what, over the past decade, has become one of the most powerful weapons in their arsenal: the proxy solicitation and advisory specialist....What does a proxy specialist do? A generation ago, the job was little more than an administrative position–arranging annual meetings and monitoring the collection of proxy forms from docile shareholders who didn’t have the inclination to attend, and whose shares would then be voted in favour of existing directors and management. Hall began his career in that routine end of the business in the 1990s. He founded Kingsdale in 2003 because he saw a growing and profitable niche: Activists and target regimes needed high-level advice and coaching in shareholder disputes.

Now Hall and a handful of other top Canadian specialists are like the superstar managers who hatch U.S. presidential campaigns. They plot strategy, control written communications to investors, stage cross-country tours, corral shareholder votes and whip their candidates–be it the activist or the target company–into shape, keeping them focused and on-message.
Doug_Steiner  Bay_Street  entrepreneur  movingonup  power_brokers  hedge_funds  West_Face  shareholder_activism  boards_&_directors_&_governance  William_Ackman  Pershing_Square  CP  public_relations  African_Canadians  Wes_Hall  proxy-advisory  niches  insights  superstars 
february 2014 by jerryking
Hedge-Fund Managers Playing Larger Role in Art Market - WSJ.com
By
Kelly Crow,
Sara Germano and
David Benoit
Jan. 23, 2014

Hedge-fund managers, who play a vital but disruptive role in the broader financial markets, are increasingly throwing their weight around the art market: They are paying record sums to drive up values for their favorite artists, dumping artists who don't pay off and offsetting their heavy wagers on untested contemporary art by buying the reliable antiquity or two. Aggressive, efficient and armed with up-to-the-minute market intelligence supplied by well-paid art advisers, these collectors are shaking up the way business gets done in the genteel art world.....Today, are applying their day-job tactics to their art shopping, dealers say.

Corporate raiders a generation ago typically held their art purchases for at least a decade. Today, the average holding period for contemporary art is two years, according to a former Sotheby's specialist. That is enough time to reap a tidy profit on a rising-star artist but hardly enough for art history to rule on the artist's lasting merits.
art  artists  collectors  Wall_Street  hedge_funds  contemporary_art  moguls  Sotheby's  investors  dealerships  Citadel  Ken_Griffin  volatility  Christie's  market_intelligence  herd_behaviour  aggressive  art_advisory  real-time  holding_periods  art_market 
january 2014 by jerryking
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