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Wall Street's Speed War -
9/09/2010 | Forbes |by Christopher Steiner, Contributor
Wall_Street  hedge_funds  slight_edge  fin-tech  speed 
december 2013 by jerryking
Traders Seek an Edge With High-Tech Snooping - WSJ.com
Dec. 18, 2013 | WSJ | By Michael Rothfeld and Scott Patterson.

A growing industry uses surveillance and data-crunching technology to supply traders with nonpublic information.

Genscape's clients include banks such as Goldman Sachs Group Inc., J.P. Morgan Chase & Co. and Deutsche Bank AG, hedge funds including Citadel LLC and large energy-trading outfits such as Trafigura Beheer BV. Surveillance and analysis of the oil, electricity and natural-gas sectors can run Genscape clients more than $300,000 a year.
surveillance  data_driven  slight_edge  traders  hedge_funds  sleuthing  Genscape  sensors  commodities  corporate_espionage  competitive_intelligence  scuttlebutt  due_diligence  market_research  exclusivity  investment_research  research_methods  LBMA  nonpublic  primary_field_research  banks  Citadel  oil_industry  natural_gas  snooping  alternative_data  informational_advantages  imagery  satellites  infrared  electric_power 
december 2013 by jerryking
Cohen Said to Have Warned Friend About Possible Federal Investigation - NYTimes.com
December 23, 2013, 8:59 pm 1 Comment
Cohen Said to Have Warned Friend About Possible Federal Investigation
By MATTHEW GOLDSTEIN
insider_trading  Wall_Street  hedge_funds 
december 2013 by jerryking
Incognito
October 2003 | Report on Business Magazine | by Doug Steiner.

"...He always seemed a step ahead, and he did it by working harder, thinking harder and trading harder—and in ways that the competition couldn't quite grasp."

Steiner's 10 rules for making serious money:

1. Economists say investing is a zero-sum game It isn't. Money moves to smart hands quickly, and lazy investors pay a price. Tiger Woods became the been golfer by practising a lot. How many prospectuses have you read in bed after the news?
2. Really good investors rarely crow. If there is $5 to be made from a trade, there will be loss than $2.50 after you've blabbed about how smart you are. There are traders who quietly take home $10 million a year. They live beside you in a modest house and drive a beat-up Nissan.
3. The best follow rules and they‘re patient. They may not invest for months. One great trader I know wanted to buy a house in a fancy neighbourhood. He spent more than a week in the registry office on his vacation, searching the title on each property in the neighbourhood to find what buyers paid and how much of that was mortgaged, going back 20 wars. He got a good deal. He does the same amount of homework investing.
4. Sharp traders never add to losing positions. Too many headaches.
5. Smart investors. when puzzled about when to sell. wonder if they should buy more. If they don’t think they should buy more,they sell.
6. The most information wins. If you like a company, phone some people who work there. Apply for a job. Try their products. Phone the shipping dock to find out if they're busy.
7. Get a Bloomberg terminal. Bloombergs have more information in them than you can use, but smart people use a lot of it.
8. Following really smart traders around the market is hard. Most have more money to invest in a position than the arbitrage or opportunity can handle. They leave few tracks.
9. Great investors an: like great athletes—they see opportunities that others don’t. Often you don't realize that what they've made the most money on is even fungible.
10. If you can't do it yourself, find someone who likes the foldouts in annual reports more than anything. Their management fees are usually worth it. And they usually don't have slick marketing brochures.
absorptive_capacity  arbitrage  Bay_Street  Bloomberg  dedication  Doug_Steiner  hard_work  hedge_funds  humility  idea_generation  investment_advice  investing  investors  money_management  obscurity  opportunities  overlooked_opportunities  patience  perception  primary_field_research  prospectuses  rules_of_the_game  self-discipline  sleuthing  slight_edge  smart_people  traders  training  unfair_advantages  zero-sum_games 
december 2013 by jerryking
In Search of the Next Big Thing
May 2013 | HBR | Adi Ignatius interviews Marc Andreessen.

Tries to find CEOs who are product innovators, have bandwidth and discipline to become CEO. It is hard to pair those skills if they do not reside in one person. It is easier to train an innovator to become CEO than to train a CEO to become an innovator. Andreessen is counter-intuitive: he went into venture capital precisely because the prior decade to his launch had been the worst decade in the industry's history. He believes in cycles and so thought that 2009 was a good time to launch Andreessen Horowitz... Take/Understand a long view....Build "fortresses"--a company so big, so powerful , so well defended that it can withstand the pressures of going public. Focus on the substance of what your company is all about. Be about the substance....companies that are built to be independent are the most attractive...generally companies need to have at least two years' worth of cash on the balance sheet in case your revenue goes to zero....takes sales and marketing seriously--lots of products are being sold and you need a way to get the word about your company into the public space...companies are worth investing in (it's value)only if its going to be an innovation factory for years to come....We are in the early phases of Andreessen's "Software is Eating the World" thesis....best of companies AH is looking at today are unbelievably good at analytics. Good at the feedback loop created by analyzing data and feeding those number sback into the process in real time, running a continuous improvement loop....The best founders are artists in their domain. They operate instinctively in their industry because they are in touch with every relevant data point. They‘re able to synthesize in their gut a tremendous amount of data—pulling together technology trends, their companies’ capabilities, their competitor's’ activities, market psychology, every conceivable aspect of how you run a company.
Marc_Andreessen  Andreessen_Horowitz  venture_capital  start_ups  vc  HBR  hedge_funds  SOX  IPOs  lean  analytics  lessons_learned  fingerspitzengefühl  contextual_intelligence  counterintuitive  specificity  long-term  software  virtuous_cycles  software_is_eating_the_world  pairs  skills  founders  product-orientated 
december 2013 by jerryking
Big Bonuses, but a Shift in Who Gets the Biggest - NYTimes.com
December 16, 2013, 8:52 pm 70 Comments
Big Bonuses, but a Shift in Who Gets the Biggest
Wall_Street  hedge_funds  private_equity  Silicon_Valley  HBS 
december 2013 by jerryking
The economics of equity research: Analyse this
Sep 21st 2013 | | The Economist |

Check out also Bloomberg Magazine or FT for articles on the future of equity research.

Independent providers do not have an answer to every problem: making research on smaller firms profitable is a perennial issue. But they do offer radically different services from the banks’ unimaginative valuation models. Bespoke services are in demand. Hedge funds now use research dollars to pay for ground surveillance on the progress of mining or oil projects in Africa, in order to value them better. Others take to the sky. RS Metrics, a satellite-intelligence provider, has reported strong demand from the financial sector for its aerial-imaging services. Some funds even hire former intelligence agents, from firms like Business Intelligence Advisors, to test whether corporate bosses are massaging the truth in investor meetings.
equity_research  hedge_funds  bespoke  Evalueserve 
november 2013 by jerryking
Boardrooms Rethink Tactics to Defang Activist Investors - NYTimes.com
November 11, 2013 | NYT | By DAVID GELLES.

...with dozens of activist hedge funds pushing for change at companies large and small, executives, directors and advisers are scrambling to calibrate their defenses to this new and in many ways more challenging threat.

“Activism is here to stay,” said Paul Verbinnen, co-founder of Sard Verbinnen, a public relations firm. “People are at a heightened state of readiness.”

But with activists varying widely in their tactics and intentions, there is no one cookie-cutter defense that works. Instead, companies and advisers are adopting more nuanced tactics.
calibration  boards_&_directors_&_governance  shareholder_activism  hedge_funds  public_relations  financial_communications 
november 2013 by jerryking
Auction Houses Muscle In on Art Galleries' Turf
OCTOBER 20, 2013 |- Barrons.com|By MARY M. LANE
Auction Houses Muscle In on Art Galleries' Turf
Contemporary-Art Boom, Margin Pressures Force Christie's, Sotheby's to Evolve.

For decades, the art business thrived on a symbiosis between galleries and auction houses. Galleries and the dealers who ran them traditionally made long-term investments in discovering and developing young artists, placing their artworks with influential collectors whose patronage would further an artist's reputation and ultimately increase his selling prices.

Auction houses, for their part, provided a lucrative secondary market for the most enduring of those artworks, but rarely handled trendy new artists.
[image] Christie's Images Ltd

Sales of highly experimental works, such as 'To Meet My Past,' by Tracey Emin, typically have been handled privately; the work went for $778,900 at a Christie's auction.

Now, a boom in the contemporary-art market and margin pressures in the auction business are changing all that. Those forces are prompting the houses to experiment with new ways of auctioning art and to arrange more private sales of contemporary works outside the auction room, where profits are richer.

Increasingly Sotheby's and Christie's are catering to a new breed of art buyers from the hedge-fund world and emerging economies who prefer to quickly acquire big-name pieces of art instead of building relationships with galleries where they might buy the art more cheaply.

Last year, private-contract sales of fine art accounted for $1 billion of Christie's $6.27 billion of revenue and $906.5 million of Sotheby's $5.4 billion. That's a big jump from before the global financial crisis: In 2006, Christie's sold $256 million of art in private sales, while
art  artists  auctions  dealerships  Christie's  Sotheby's  galleries  London  collectors  patronage  art_galleries  secondary_markets  hedge_funds  symbiosis  contemporary_art 
october 2013 by jerryking
Twitter's Lucrative Data Mining Business - WSJ.com
October 6, 2013 | WSJ | By ELIZABETH DWOSKIN.

Twitter's Data Business Proves Lucrative
Twitter Disclosed It Earned $47.5 Million From Selling Off Information It Gathers

Twitter's data business has rippled across the economy. The site's constant stream of experiences, opinions and sentiments has spawned a vast commercial ecosystem, serving up putative insights to product developers, Hollywood studios, major retailers and—potentially most profitably—hedge funds and other investors....Social-data firms spot trends that it would take a long time for humans to see on their own. The United Nations is using algorithms derived from Twitter to pinpoint hot spots of social unrest. DirecTV DTV +0.99% uses Twitter data as an early-warning system to spot power outages based on customer complaints. Human-resources departments analyze the data to evaluate job candidates....While estimates of the market value of the social-data industry are hard to come by, one research firm, IDC, estimates that the entire "big data" market has grown seven times as quickly as the information technology sector as a whole. It may be valued at $16.9 billion in two years....Each social-data firm boasts proprietary dating-mining tools that go beyond basic keyword searches. Some can zoom in on a subset of people—say, women in a certain ZIP Code—and monitor phrases that show emotion. Then they can create a heat map or a sentiment score that measures how that subset feels about a topic. They have trained natural language processing algorithms to look at slang and broken grammar and to highlight tweets that indicate urgency because of words like "BREAKING."

"We don't just count the volume of these trends. That's naïve," says Nova Spivak, CEO of the Los Angeles-based firm Bottlenose. Rather, his firm looks at the momentum of trends....Many smaller analytics startups are now turning to four companies that Twitter has dubbed "certified data resellers." These brokers, Gnip, Data Sift, Topsy and the Japanese firm NTT Data, 9613.TO -2.04% account for the bulk of Twitter's data revenue. Last year, they paid Twitter monthly fees of about $35.6 million.

Twitter's exponential growth has meant its influence extends well beyond marketing and crisis PR. Nonprofits, human-resource managers and politicians have found Twitter data useful, too.
data  data_mining  Twitter  massive_data_sets  sentiment_analysis  social_media  social_data  trend_spotting  Gnip  Data_Sift  Topsy  NTT_Data  Bottlenose  NLP  hotspots  UN  human_resources  insights  Hollywood  hedge_funds  momentum  product_development 
october 2013 by jerryking
The long-term benefits of short-term investing - The Globe and Mail
Aug. 27 2013 | The Globe and Mail | FINN POSCHMANN

Markets, in the near term or long, work in the interests of shareholders – so long as they are unfettered by overseers who bet otherwise.

In this sense, short-term investors offer a great example of how markets are supposed to work. And this understanding explains the fact that the share price of rivals typically goes down when a firm in their sector is targeted and why, even if leverage goes up after a buyout, so too does productivity.
private_equity  hedge_funds  myths  short_selling  long-term  short-term  investors 
october 2013 by jerryking
Andy Kessler: Hedge Funders Are All a Little Nuts - WSJ.com
August 27, 2013 | WSJ | by ANDY KESSLER.

Hedge Funders Are All a Little Nuts
Sleepless nights, minds racing, working out both sides of all arguments, second guessing. Stay sane? No gain.

Carl Icahn bought $1.5 billion in Apple shares and tweeted, "We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come." This is known in the business as talking your book and, predictably, the stock popped to $500. (It's now $488.) Mr. Icahn apparently wants Apple to borrow $150 billion to finance more share buybacks, figuring the stock will go to $625. Maybe, but new products and earnings growth are the only long-term drivers of value, not an impatient investor with a few billion to throw around. Apple should ignore him.

When hedge-fund managers grab onto "sure things" rather than float, it's usually a sign they've lost their touch. Stay thirsty, my friends.

And what's an individual investor to do? Teach yourself how to think ahead of those who are scrambling for ideas. When everyone else is thinking short term, start thinking long term. Embrace ideas when everyone else hates them. Out-Costanza the hedgies.
Andy_Kessler  hedge_funds  contrarians  strategic_thinking  long-term  personal_finance  investors  Seinfeld 
september 2013 by jerryking
With Huge War Chests, Activist Investors Tackle Big Companies - NYTimes.com
August 30, 2013, 9:01 pm 14 Comments
With Huge War Chests, Activist Investors Tackle Big Companies
By MICHAEL J. DE LA MERCED and JULIE CRESWELL

In the 1980s, corporate raiders like T. Boone Pickens and Carl C. Icahn engaged in hostile takeovers or leveraged buyouts of companies, or sought to be bought out themselves at a profit. (Some of yesterday’s raiders, like Mr. Icahn, are today’s more public-relations-friendly “activists.”) In the 1990s, big pension funds like the powerful California Public Employees’ Retirement System took up the mantle, pressing for change not only in corporate governance but also on social issues like doing business in apartheid-era South Africa and protecting the environment.

Unlike the raiders, the current activists contends they are fighting for the interests of shareholders. To that end, the activists most often seek to appoint allies to board seats to help fight against what they see as complacent management and to bring more discipline to companies.
shareholder_activism  large_companies  hedge_funds  Microsoft  William_Ackman  institutional_investors  Apple  money_management  T.Boone_Pickens 
september 2013 by jerryking
Land at centre of mega-quarry fight sold
July 18, 2013 | Globalnews.ca | By Heather Loney.

Bonnefield Financial – a Canadian farmland investment company -announced this week it had bought more than 2,600 hectares of land from Highland Companies.

Bonnefield said the Class 1 farmland would continue to be used for farming.

“Here we have Canadian investors, supporting Canadian farmers to ensure that one of our most precious resources – farmland – continues to be used for farming,” said Bonnefield president Tom Eisenhauer in a press release. “That’s the core of Bonnefield’s mission: farmland for farming. We look forward to working with local farmers who will operate this land on a long-term basis and to ensure that it is preserved and enhanced for farming use.”
farmland  agribusiness  hedge_funds  institutional_investors  farming 
july 2013 by jerryking
Take one philanthropist plus one hedge fund - FT.com
June 2, 2013 | FT | By Emma Boyde.

the Pershing Square Foundation has announced a gift of £4.5m to Saïd Business School at Oxford university....The gift will fund up to five scholars a year on Saïd’s “1+1” programme, which allows students to study an MBA and an Oxford university specialist master’s degree in two years. The gift will be matched by a further £3m from the Oxford Graduate Scholarship Matched Fund.
philanthropy  Oxford  hedge_funds  business_schools  William_Ackman  money_management 
june 2013 by jerryking
The man who's selling us short
27 Apr 2013 | The Globe & Mail B.4 |Sean Silcoff.

Meet the 36-year-old fund manager who is wagering big money on big trouble for the Canadian economy

Vijai Mohan has made an all-in bet against C...
hedge_funds  Canada  housing  short_selling  the_big_picture  detail_oriented 
april 2013 by jerryking
Prudential Research Model May Have Been a Dinosaur
June 8, 2007 | WSJ | Scott Patterson.

The decision by Prudential Financial PRU +0.70% to close its stock-research arm doesn't mean research is doomed, but it does signal an important shift. Deep-pocketed investors such as pension funds and hedge funds are hungry for exclusive, specialized research that can give them an edge over competition.

Experts say Prudential's research had become too widely distributed to draw enough interest, or dollars.

"The notion of widespread dissemination of a recommendation, that model is 40 years old," said Mike Thompson, director of research at Thomson Financial. "If you talk to the hedge funds, what they want are ideas that are actionable that not everyone gets."

The trend has given rise to independent, specialized research outfits. There are 63 independent research firms today, up from 14 in 2000, according to Thomson Financial.
equity_research  Wall_Street  investment_research  hedge_funds  pension_funds  exclusivity  nonpublic  slight_edge  proprietary  hard_to_find  novelty  interestingness  actionable_information 
february 2013 by jerryking
Big Data Is Great, but Don’t Forget Intuition
December 29, 2012 | NYTimes.com |By STEVE LOHR.

A major part of managing Big Data projects is asking the right questions: How do you define the problem? What data do you need? Where does it come from? What are the assumptions behind the model that the data is fed into? How is the model different from reality?...recognize the limits and shortcomings of the Big Data technology that they are building. Listening to the data is important, they say, but so is experience and intuition. After all, what is intuition at its best but large amounts of data of all kinds filtered through a human brain rather than a math model?
Andrew_McAfee  asking_the_right_questions  bubbles  conferences  critical_thinking  data_scientists  Erik_Brynjolfsson  failure  hedge_funds  human_brains  information-literate  information-savvy  intuition  massive_data_sets  MIT  models  problems  problem_awareness  problem_definition  problem_framing  questions  skepticism  Steve_Lohr  Wall_Street 
january 2013 by jerryking
Insider Trading Persists, and Gets Stealthier - NYTimes.com
By JAMES B. STEWART
Published: December 7, 2012

Why has insider trading proved so persistent, even in the face of prosecutions and popular Hollywood films like “Wall Street”?

The risk-versus-reward equation that has always been a factor in financial markets has changed drastically in the last 20 years....many people who work in financial markets “are highly skilled at cost-benefit analysis,” Mr. Bharara told me. “They’re highly intelligent. They’ve been to the best schools. They weigh the risk of getting caught against the potential reward, and they decide it’s worth the risk. We’re trying to tilt that equation.” There’s no doubt that the potential for gain “has soared,” Robert S. Khuzami, head of enforcement at the S.E.C., told me, and not because there are more takeovers and other market-moving events to trade on. “That’s a big change from the 1980s and ’90s. Hedge funds can take massive positions, use short-selling and derivatives, and employ trading techniques that aren’t transparent, and make huge amounts of money on small fluctuations on price. They don’t need to hit a home run on a $20 pop on a takeover announcement. These bets may be bunts and singles, but they get to the same place.”...The pressure to get an “edge,” as hedge fund traders often put it, has never been greater...In the wake of the Milken-Boesky era, the government has become sophisticated at monitoring major market-moving events like takeover announcements, to the point that insider trading on major corporate news has become relatively rare ...Although some critics say the S.E.C.’s expertise has lagged advances in areas like high-frequency trading, the enforcement division has made progress in monitoring suspicious trading. “We’ve created databases to see who is trading in tandem, even if you know nothing about an event,” Mr. Khuzami said. “It’s a trader-based approach, not an issuer-based approach. These trading patterns are the first clue to what might be insider trading rings. You then have to do the real detective work, pulling phone records and e-mails and using other techniques to uncover the links. ”
insider_trading  Wall_Street  financiers  hedge_funds  Preet_Bharara  investigative_workups  deterrence  Bay_Street  SEC  enforcement  patterns  misconduct  cost-benefit_analysis  slight_edge  trading  stealth  prosecutors 
december 2012 by jerryking
Critics celebrate surprise end of mega quarry north of Toronto
Nov. 21 2012 | The Globe and Mail | Renata D’Aliesio and Karen Howlett

John Scherer, one of two principals with The Highland Companies, said he believes the quarry proposal was well crafted but it didn’t have sufficient support from the community or from the provincial government. In withdrawing its application, Highland also announced Wednesday that Mr. Lowndes, who was president of the operation, has resigned and will have no further involvement with the private company.

“In hindsight, we did not do a real good job of engaging the local community and the public at large about our project and about the benefits and how we would move the project forward,” Mr. Scherer said. “As a result there is a lot of misinformation that was out there.”

The Highland Companies, formed in 2006, is the operating and investment vehicle for a group of private investors from Canada and the United States. Highland is backed by the Boston-based hedge fund Baupost Group, which has a propensity for buying land likely to increase in value.

Mr. Scherer said Highland will continue its farming operations. Through acquiring farmland for its mega-quarry proposal, the company has become the province’s top potato producer, growing, packing and selling about 100 million pounds of potatoes a year. Although many people who opposed the pit are worried a smaller quarry proposal is on the horizon, Mr. Scherer said, “we have no plans to do anything else at this point.”
agriculture  hedge_funds  farming  potatoes  hindsight 
december 2012 by jerryking
globeadvisor.com: BILL ACKMAN
November 30, 2012
A year ago, Bill Ackman was just another American hedge fund billionaire. Then came his proxy battle against chronically underperforming CP Rail. The ensuing boardroom rout struck fear in the hearts of directors and executives across Canada, and earned Ackman our top nod for 2012 as the CEO who kicked business-as-usual squarely in the gut

JACQUIE McNISH
hedge_funds  profile  William_Ackman  Pershing_Square  money_management  shareholder_activism  boards_&_directors_&_governance  proxy-advisory 
december 2012 by jerryking
New Breed of SAC Capital Hire Is at Center of Insider Trading Case - NYTimes.com
November 25, 2012, 9:14 pm13 Comments
New Breed of SAC Capital Hire Is at Center of Insider Trading Case
By PETER LATTMAN
hedge_funds  insider_trading  Wall_Street  SAC_Capital 
november 2012 by jerryking
Clear the track
JULY/AUGUST 2012 | REPORT ON BUSINESS | DEREK DECLOET
William_Ackman  CP  CN  hedge_funds  railways 
september 2012 by jerryking
Creditors from hell
September 2005 | Chain Leader | by David Farkas
turnarounds  hedge_funds  creditors  due_diligence 
september 2012 by jerryking
Key differences between hedge funds and private equity
Mar/Apr 2006 | The Secured Lender Vo|. 62, Iss. 2; pg‘ 26. 3 pgs| by Mark K Thomas. Peter J. Young.

The last few years have brought an explosion in the number and size of hedge funds. Additionally, recent deals by private equity funds are much larger than in the past and include taking publicly traded companies private. Although these funds do not represent long-term threats to each other, secured lenders must recognize that private equity and hedge funds have markedly different characteristics. goals and behaviors. Major differences between the two types of funds include: 1. time to hold. 2‘ liquidity and leverage, 3. strategic direction, 4. due diligence methodology. 5. risk tolerance, 6. mark to market, 7. desired return on investments. 8. control, 9. assessment of EBITDA, leverage, liquidity and other standard financial metrics. 10. industry focus, and 11. management fees. Knowing the major differences between the types of funds will enable a secured lender to anticipate behavior in transactions
involving both types of funds.
private_equity  hedge_funds  venture_capital  holding_periods  liquidity  leverage  due_diligence  risk-tolerance 
september 2012 by jerryking
Private equity groups acknowledge the threat hedge fund are making into buyouts
Jun 6, 2005 | Financial Times pg. 10 | PAUL J DAVIES.

The extent to which hedge funds are competing directly for the kind of buy-out deals beloved of private equity firms is less certain. In 2004, hedge funds were successful in about 23 large US deals worth roughly Dollars 30bn (Pounds 16.6bn). This compares with Dollars 300bn in buy-out deals announced by private equity groups the same year.
while the hiring of private equity deal specialists by hedge funds has been on the rise, most still lack the know-how for the value creation that private equity has always aimed at. "Later on, PE firms are more likely to start launching hedge funds than the other way around because the PE firms have the deep teams, the investment specialists and deal expertise," says Mr [John Coyle]. "Hedge funds don't have these kind of resources."
Having a hedge fund arm would give PE firms ways to exploit the expensive due diligence they perform. PE firms examine many deals, but often end up outbid, or deciding that an opportunity is not a pure PE deal. At that point, all their work goes for nought, Mr Coyle says. "So, they see having a hedge fund that can invest in or finance the target in different ways as a way to leverage off all the due diligence they have performed."
private_equity  hedge_funds  Cerberus  Blackstone  KKR  Carlyle_Group  buyouts 
september 2012 by jerryking
Trends in Private Equity
Winter 2004 | Journal of Wealth Management | by Mark Anson
trends  private_equity  auctions  secondary_markets  LBOs  hedge_funds 
september 2012 by jerryking
WAR and PEACE and COLD CUTS
February 24, 2012 | globeadvisor.com: | Jacquie McNish
How did one impertinent shareholder outflank a Canadian Establishment company like Maple Leaf Foods? Jacquie McNish goes behind the scenes to discover the new school of investor activism

Jacquie McNish
hedge_funds  West_Face  Maple_Leaf_Foods  investors  cured_and_smoked  shareholder_activism  Bay_Street 
august 2012 by jerryking
Why Are Hedge Funds Allowed to Invest in Litigation?
Jul 3 2012 | The Atlantic | Lisa Rickard.

the spread of third-party litigation financing, or TPLF.

You probably haven't heard of TPLF. It's a fairly recent creation, originating in Australia and now landing on the shores of the U.S. In essence, TPLF is the practice of hedge funds and other investment firms providing funds to plaintiffs' lawyers in order to conduct litigation. If the case is won in court or settled, the investor is repaid out of the proceeds of the lawsuit, usually with an extremely high rate of return. The investors, therefore, have a direct stake in the outcome of the case.

Proponents of TPLF say that providing this new funding stream increases access to the courts. But U.S. courts are already widely accessible. For instance, a plaintiff can hire an attorney on a contingency fee basis, a practice that is prohibited in most other developed countries.....we've seen how TPLF benefits funders and hurt litigants. But the biggest loser from TPLF might be society at large. This is because we all rely on an impartial civil justice system to resolve disputes in a fair and expeditious manner. When TPLF debases that system by putting investor profits ahead of justice, society is the loser
hedge_funds  litigation  investors  class_action_lawsuits  lawsuits  third-party 
july 2012 by jerryking
Trader Hits Jackpot in Oil, As Commodity Boom Roars On - WSJ.com
February 28, 2008| WSJ | By ANN DAVIS.
Mr. Hall Bet Early On Market Shift; Buoying Citigroup.

Profiles Andrew J. Hall, an enigmatic British-born trader who, in 2003, anticipated an important shift in the way the world valued oil -- and bet big....Mr. Hall's bet -- that long-term and short-term energy prices would soon abandon their historical relationship with one another -- looked like a long shot when he made it....Around 2003, Mr. Hall became convinced big structural changes were looming in the oil markets. For more than a decade, oil had ranged from $10 to $30 a barrel. But growth in demand was starting to outstrip growth in supply. And the once-sleepy economies of China and India were starting to compete for that fuel.

To place his bet, he focused on what was then a stagnant corner of the commodities world: The extremely long-term market in which traders buy and sell oil to be delivered years in the future.

Futures are contracts to buy or sell a product later on, at a price agreed upon today. Back in 2003, oil for future delivery was considerably cheaper than oil in the "spot," or current, market. For instance, a barrel of oil for delivery in 2005 was as much as 20% cheaper than spot oil....A key to Mr. Hall's success, says a friend, Thomas Coleman, a Louisiana oil-storage executive and fellow art collector, is an ability to block out the noise of the crowd. When Mr. Hall "locks in on an idea, he'll take it to the extreme," Mr. Coleman says.
Citigroup  Phibro  traders  oil_industry  hedge_funds  big_bets  commodities  collectors  pattern_recognition  structural_change  extremities  commodities_supercycle  ratios  noise  turbocharge  extremes 
june 2012 by jerryking
Hedge Funds Today.pdf - Google Docs
September 29, 2005| WSJ pg. A18 | Sanford J. Grossman.
hedge_funds  mutual_funds  talent  regulation 
june 2012 by jerryking
Ray Dalio's World
MAY 19, 2012 | - Barrons.com |SANDRA WARD
Ray_Dalio  Bridgewater  hedge_funds 
may 2012 by jerryking
Ackman unimpressed with CP’s results - The Globe and Mail
BRENT JANG AND JACQUIE McNISH
From Tuesday's Globe and Mail
Published Monday, Apr. 23, 2012
William_Ackman  CP  CN  hedge_funds  railways 
april 2012 by jerryking
Investors Make Changes at Burger King Ahead of Listing - WSJ.com
April 4, 2012 | WSJ | By PAUL ZIOBRO.
Quick Changes at Burger King
Investors Who Reshaped Restaurant Chain's Menu, Management, Now Plan to List Shares on Market
hedge_funds  Burger_King  William_Ackman  investors  franchising 
april 2012 by jerryking
Considerations for Investors Before Investing in Bankrupt Companies
Fall 2002 | The Journal of Private Equity | by Warren H. Feder and Patrick LaGrange
bankruptcies  distressed_debt  howto  private_equity  hedge_funds  investors 
march 2012 by jerryking
Economic Conditions-Economic trends-legal profession-lawyers-prestige-doctors - New York Times
January 6, 2008 | NYT | By ALEX WILLIAMS.

“The older professions are great, they’re wonderful,” said Richard Florida, the author of “The Rise of the Creative Class: And How It’s Transforming Work, Leisure, Community and Everyday Life” (Basic Books, 2003). “But they’ve lost their allure, their status. And it isn’t about money.”

OR at least, it is not all about money. The pay is still good (sometimes very good), and the in-laws aren’t exactly complaining. Still, something is missing, say many doctors, lawyers and career experts: the old sense of purpose, of respect, of living at the center of American society and embodying its definition of “success.”

In a culture that prizes risk and outsize reward — where professional heroes are college dropouts with billion-dollar Web sites — some doctors and lawyers feel they have slipped a notch in social status, drifting toward the safe-and-staid realm of dentists and accountants. It’s not just because the professions have changed, but also because the standards of what makes a prestigious career have changed.

This decline, Mr. Florida argued, is rooted in a broader shift in definitions of success, essentially, a realignment of the pillars. Especially among young people, professional status is now inextricably linked to ideas of flexibility and creativity, concepts alien to seemingly everyone but art students even a generation ago.
career_paths  Managing_Your_Career  law  law_firms  Richard_Florida  hedge_funds  private_equity  movingonup  meritocratic  professional_education  young_people 
march 2012 by jerryking
Ray Dalio: Man and machine
Mar 10th 2012 | The Economist |
The economic ideas of the world’s most successful hedge-fund boss.

Mr Dalio says his ideas are entirely the product of his own reflections on his life as a trader and his study of economic history. He has read little academic economics (though his work has echoes of Hyman Minsky, an American economist, and of best-selling recent work on downturns by Carmen Reinhart and Kenneth Rogoff) but has conducted in-depth analysis of past periods of economic upheaval, such as the Depression in America, post-war Britain and the hyperinflation of the Weimar Republic. He has even simulated being an investor in markets in those periods by reading daily papers from these eras, receiving data and “trading” as if in real time.
Bridgewater  Ray_Dalio  hedge_funds  finance  economics  debt  business 
march 2012 by jerryking
The Buttonwood Gathering — Leading indicator
October 26th-27th 2011 in New York City. Ray Dalio, founder and co-chief investment officer of Bridgewater Associates, spoke with Matthew Bishop, US business editor and New York bureau chief for The Economist, during the ‘Leading indicator’ session at The Economist’s Buttonwood Gathering.
Ray_Dalio  Bridgewater  hedge_funds  web_video  leading_indicators 
march 2012 by jerryking
America's Export to Canada: Shareholder Activism - NYTimes.com
February 14, 2012, 7:16 pm Hedge Funds | Deal Professor
America’s Export to Canada: Shareholder Activism
By STEVEN M. DAVIDOFF
William_Ackman  hedge_funds  shareholder_activism  railways 
february 2012 by jerryking
Book Review: The Hedge Fund Mirage - WSJ.com
JANUARY 24, 2012 | WSJ | By GEORGE MELLOAN.

A Hazard of Fortunes: An insider's guide to the world of hedge funds—how they work and why they are likely to do better early on.

The Hedge Fund Mirage

By Simon Lack
(Wiley, 187 pages, $34.95)
hedge_funds  book_reviews  JPMorgan_Chase 
january 2012 by jerryking
The Hedge Fund Ripoff
Jan. 21, 2012 | Slate Magazine | By Matthew Yglesias
hedge_funds 
january 2012 by jerryking
Charlie Rose's Interview with Ray Dalio
October 20, 2011 | Charlie Rose Show | with Ray Dalio.

CHARLIE ROSE: And you always make a point that you know what you don`t know and that`s equally valuable.

RAY DALIO: More valuable. I want to say that -- so this is the whole philosophy. I -- I so, know that I can be wrong; and look, we all should recognize that we can be wrong. And if we recognize that we`re wrong and we worry about being wrong than what we should do is have a thoughtful dialogue....RAY DALIO: So the way I get to success. The way -- it`s not what I know. I`ve acquired some things that I know along the way and they`re helpful.

(CROSSTALK)

CHARLIE ROSE: It is -- it is -- it`s not what you know but it is --

(CROSSTALK)

RAY DALIO: It`s knowing what I don`t know or worrying that I won`t -- that I`ll be wrong that makes me find --

CHARLIE ROSE: Yes.

RAY DALIO: Well, I want people to criticize my point of view -- I want to hold down.

CHARLIE ROSE: Right.

RAY DALIO: Say I have a -- I think this but I may be wrong. And if you can attack what I`m saying -- in other words stress test what I`m saying -- I`ll learn....CHARLIE ROSE: And you have not been precise, and your assumptions are flawed.

RAY DALIO: Oh it`s so essential, right. There`s -- the -- the number one principle at our place is that if something doesn`t make sense to you, you have the right to explore it, to see if it makes sense.

I don`t want people around who do things that they don`t -- they don`t think makes sense because I`m going to have not-thinking people.

(CROSSTALK)

CHARLIE ROSE: Right.

RAY DALIO: So that they have not only the right, they have obligation. Don`t walk away thinking something`s wrong.

CHARLIE ROSE: Failure teaches you more than success?

RAY DALIO: Of course. One of my favorite books is "Einstein`s Mistakes."

CHARLIE ROSE: Right. And because it showed you that even Einstein, the most brilliant person of the century in common judgment made mistakes?

RAY DALIO: The great fallacy of all -- I think of all of mankind practically -- I mean that`s a big statement -- but the great fallacy is that people know more than what they do and there`s a discovery process and so when you look at -- that`s the process for learning.

The process for learning is to say "I don`t know." Like, I`m -- I`m totally comfortable being incompetent. If I -- if I -- I like being incompetent. I don`t mind being an incompetent. If I don`t -- how -- how much can you be competent about?

And so that whole notion of do you like learning? Do you like finding out what`s true and building on it without an ego? And that becomes the problem. How many statements do you listen to people that begin "I think this, I think that," where they should be asking "I wonder."
Ray_Dalio  interviews  truth-clarity  philanthropy  stress-tests  Charlie_Rose  truth-telling  Bridgewater  hedge_funds  deleveraging  organizational_culture  economics  unknowns  pretense_of_knowledge  Albert_Einstein  mistakes 
january 2012 by jerryking
EINSTEIN'S MISTAKES | Hans C. Ohanian
Although Einstein was the greatest genius of the twentieth century, many of his groundbreaking discoveries were blighted by mistakes, ranging from serious errors in mathematics to bad misconceptions in physics and failures to grasp the subtleties of his own creations. This forensic biography dissects Einstein’s scientific mistakes and places them in the context of his turbulent life and times. In lively, accessible prose, Hans C. Ohanian paints a fresh, insightful portrait of the real Einstein at work, in contrast to the uncritical celebrity worship found in many biographies.

Of the approximately 180 original scientific papers that Einstein published in his lifetime, about 40 are infested with mistakes. For instance, Einstein’s first mathematical proof of the famous formula E = mc2 was incomplete and only approximately valid; he struggled with this problem for many years, but he never found a complete proof (better mathematicians did). Einstein was often lured by irrational and mystical inspirations, but his extraordinary intuition about physics permitted him to discover profound truths despite—and sometimes because of—the mistakes he made along the way. He was a sleepwalker: his intuition told him where he needed to go, and he somehow managed to get there without quite knowing how.

As this book persuasively argues, the defining hallmark of Einstein’s genius was not any special mathematical ability but an uncanny talent to use his mistakes as stepping stones to formulate his revolutionary theories.
Albert_Einstein  books  book_reviews  Bridgewater  groundbreaking  hedge_funds  mistakes  Ray_Dalio 
january 2012 by jerryking
The Mummy Diaries
Oct. 07, 2002 | TIME | By MARGARET CARLSON.
hedge_funds  novels  book_reviews 
november 2011 by jerryking
Searching for hedge funds: the dark matter of the electricity universe
November-December 2006 | Electric Light & Power. 84.6 : p56. | Tanya Bodell
hedge_funds  utilities  electric_power 
november 2011 by jerryking
Ken Griffin has high ambitions for his hedge fund, Citadel -
April 16, 2007| Fortune | By Marcia Vickers, Fortune senior writer
Ken_Griffin  hedge_funds  Citadel 
october 2011 by jerryking
Macro Man
January 2007 | Bloomberg Markets | by Deepak Gopinath
hedge_funds  Peter_Thiel 
october 2011 by jerryking
Lawyers at odds over Rajaratnam’s profits - FT.com
October 4, 2011 | FT | By Kara Scannell in New York.

US prosecutors and lawyers for Raj Rajaratnam, the convicted founder of Galleon Group, squared off in court on Tuesday over how to measure profits the hedge fund founder made from insider trading.

The judge asked the government to submit additional profit calculations and said he would announce his ruling at next Thursday’s sentencing hearing.
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On this story
Prosecutors say Mr Rajaratnam should serve between 235 and 293 months, or a minimum sentence of 19 ½ years, based on gains they now allege exceeded $70m and enhancements for being a leader of the conspiracy and obstructing the government’s investigation during an interview with the Securities and Exchange Commission.

Mr Rajaratnam’s lawyers argued that a better estimate was $7.4m in personal gains, which would place his sentence without any enhancements between six and eight years.
Raj_Rajaratnam  insider_trading  legal_strategies  sentencing_guidelines  SEC  Wall_Street  hedge_funds 
october 2011 by jerryking
Good at Chess? A Hedge Fund May Want to Hire You - NYTimes.com
September 29, 2011, 6:56 pm Investment Banking | Off The Clock
Good at Chess? A Hedge Fund May Want to Hire You
By DYLAN LOEB MCCLAIN
hedge_funds  chess  investment_banking 
september 2011 by jerryking
In the Insider Trading War, Market-Beaters Beware - NYTimes.com
Sep 22, 2011 |NYT|ROGER LOWENSTEIN.A problem with the SEC’s
focusing on high-return funds is that it skates over the crucial
distinction between short- & LT investing. Some of the 8,000+ hedge
funds in the US are engaged in rapid-fire trading —trying to outguess
the competition w.r.t disclosures that’ll become public in a week.Some
are obsessed with trying to outguess Wall Street “whisper
numbers”.Absent tips regarding forthcoming news, their managers have no
value added/edge. For investors working longer horizons the picture is
different.Skillful, L.T. investors can make $ without tips, by analyzing
info. that’s already public...Society has an interest in genuine
research (e.g. whether GOOG will be a more dominant biz.)...Hedge fund
hypertrading doesn’t add to economic output--it ratchets up mkt.
volatility...A marked increase in volatility complicates the SEC’s
job...the payoff for trading on insider tips rises as well.Ferreting out
the prescient & the crooked becomes more important.
insider_trading  insider_information  SEC  Roger_Lowenstein  white-collar_crime  Wall_Street  hedge_funds  SAC_Capital  volatility  long-term  investing  personal_payoffs 
september 2011 by jerryking
Ray Dalio’s Richest and Strangest Hedge Fund
JULY 25, 2011 |: The New Yorker | by John Cassidy.
How Ray Dalio built the world’s richest and strangest hedge fund.
profile  Ray_Dalio  Bridgewater  hedge_funds  organizational_culture  transparency 
august 2011 by jerryking
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