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jerryking : slight_edge   39

The lesson for all investors arising from the lewd comments of a billionaire fund manager
OCTOBER 23, 2019 | The Globe and Mail | by IAN MCGUGAN

The money management industry that, in one way or another, is trying to seduce you.....The key to arriving at a mature relationship is seeing through the patter. Every fund company can trot out attractive, well-educated people with well-researched insights about the market. But look beyond the superficial charm.
More often than not, this will result in disappointment. The performance of most actively managed funds consistently lags passive market benchmarks, especially as you look at longer periods. In Canada, more than nine in every 10 funds underperformed their respective benchmarks over the 10 years to the end of 2018, according to S&P Dow Jones Indices.

In the United States, similar long-term trends hold true. Even the endowments of Ivy League universities, managed by teams of highly paid professionals, have failed to keep pace with a simple 60/40 portfolio of 60 per cent U.S. stocks and 40 per cent U.S. bonds over the past decade, according to research firm Markov Processes International. One simple lesson to take away from this is that indexing should be the default strategy for most small investors. Unless you have a strong view of where the market is going next, or a compelling reason to believe in a specific money manager, putting money into a low-cost, widely diversified index fund makes sense. No, it’s not going to work all the time – no investing strategy does – but it is hard to shrug off the long-term evidence of superior performance.

John Huber at Saber Capital Management, is often asked what his edge, or advantage, is. “Institutional investors seem especially interested in this question, and the edge that they are almost always looking for is some form of informational edge or insight that the rest of the market isn’t aware of,”......The problem is that such edges don’t exist any more. Oceans of financial and corporate information are available to any professional investor. Legions of professionals pore over that data, looking for reasons to buy or sell. Nobody knows more than anyone else – at least, not legally.......The only sustainable edge, Mr. Huber argues, is maintaining a different time horizon than the overall market.....
active_investing  commoditization_of_information  disappointment  index_funds  informational_advantages  investors  Ken_Fisher  lessons  money_management  passive_investing  slight_edge  time_horizons 
october 2019 by jerryking
‘Businesses Will Not Be Able to Hide’: Spy Satellites May Give Edge From Above
Jan. 24, 2019 | The New York Times | By Cade Metz.

In October, the Chinese province of Guangdong — the manufacturing center on the southern coast that drives 12 percent of the country’s economy — stopped publishing a monthly report on the health of its local factories.

For five consecutive months, this key economic index had shown a drop in factory production as the United States applied billions of dollars in tariffs on Chinese exports. Then, amid an increasingly bitter trade war between the United States and China, the government authorities in Beijing shut the index down.

A small start-up in San Francisco began rebuilding the index, lifting information from photos and infrared images of Guangdong’s factories captured by satellites orbiting overhead. The company, SpaceKnow, is now selling this information to hedge funds, banks and other market traders looking for an edge.

High-altitude surveillance was once the domain of global superpowers. Now, a growing number of start-ups are turning it into a business, aiming to sell insights gleaned from cameras and other sensors installed on small and inexpensive “cube satellites.”..... satellite analysis will ultimately lead to more efficient markets and a better understanding of the global economy.....as well...as a check on the world’s companies and governments....use satellite imagery to track everything from illegal mining and logging operations to large-scale home demolitions. .....All of this is being driven by a drop in the cost of building, launching and operating satellites. Today, a $3 million satellite that weighs less than 10 pounds can capture significantly sharper images than a $300 million, 900-pound satellite built in the late 1990s. That allows companies to put up dozens of devices, each of which can focus on a particular area of the globe or on a particular kind of data collection. As a result, more companies are sending more satellites into orbit, and these satellites are generating more data.

And recent advances in artificial intelligence allow machines to analyze this data with greater speed and accuracy. “The future is automation, with humans only looking at the very interesting stuff,” ......The start-ups buy their data from a growing number of satellite operators, and they build the automated systems that analyze the data, pinpointing objects like cars, buildings, mines and oil tankers in high-resolution photos and other images........What began with satellite cameras is rapidly expanding to infrared sensors that detect heat; “hyperspectral” sensors that identify minerals, vegetation and other materials; and radar scanners that can build three-dimensional images of the landscape below.....
artificial_intelligence  automation  competitive_advantage  indices  imagery  informational_advantages  infrared  insights  reconnaissance  satellites  sensors  slight_edge  surveillance  trade_wars 
january 2019 by jerryking
How a Former Canadian Spy Helps Wall Street Mavens Think Smarter
Nov. 11, 2018 | The New York Times | By Landon Thomas Jr.

* “Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones,” by James Clear. “
* “The Laws of Human Nature,” an examination of human behavior that draws on examples of historical figures by Robert Greene.
* “Thinking in Bets: Making Smarter Bets When you Don’t Have All the Cards” by Annie Duke,
* “On Grand Strategy,” an assessment of the decisions of notable historical leaders by the Pulitzer Prize-winning biographer John Lewis Gaddis

Shane Parrish has become an unlikely guru for Wall Street. His self-improvement strategies appeal to his overachieving audience in elite finance, Silicon Valley and professional sports.....Shane Parrish is a former cybersecurity expert at Canada’s top intelligence agency and an occasional blogger when he noticed something curious about his modest readership six years ago: 80 percent of his followers worked on Wall Street......The blog was meant to be a method of self-improvement, however, his lonely riffs — on how learning deeply, thinking widely and reading books strategically could improve decision-making skills — had found an eager audience among hedge fund titans and mutual fund executives, many of whom were still licking their wounds after the financial crisis.

His website, Farnam Street, urges visitors to “Upgrade Yourself.” In saying as much, Mr. Parrish is promoting strategies of rigorous self-betterment as opposed to classic self-help fare — which appeals to his overachieving audience in elite finance, Silicon Valley and professional sports. ....Today, Mr. Parrish’s community of striving financiers is clamoring for more of him. That means calling on him to present his thoughts and book ideas to employees and clients; attending his regular reading and think weeks in Hawaii, Paris and the Bahamas; and in some cases hiring him to be their personal decision-making coach......“We are trying to get people to ask themselves better questions and reflect. If you can do that, you will be better able to handle the speed and variety of changing environments.”....Parrish advises investors, to disconnect from the noise and to read deeply......Few Wall Street obsessions surpass the pursuit of an investment edge. In an earlier era, before computers and the internet, this advantage was largely brain power. Today, information is just another commodity. And the edge belongs to algorithms, data sets and funds that track indexes and countless other investment themes.......“It is all about habits,” “Setting goals is easy — but without good habits you are not getting there.”......“Every world-class investor is questioning right now how they can improve,” he said. “So, in a machine-driven age where everything is driven by speed, perhaps the edge is judgment, time and perspective.”
books  brainpower  Charlie_Munger  coaching  commoditization_of_information  CSE  cyber_security  decision_making  deep_learning  disconnecting  financiers  gurus  habits  investors  James_Clear  judgment  life_long_learning  overachievers  personal_coaching  perspectives  Pulitzer_Prize  questions  reading  reflections  self-betterment  self-improvement  slight_edge  smart_people  Wall_Street  Warren_Buffett 
november 2018 by jerryking
Retailers must innovate and adapt to thrive in the age of Amazon
JUNE 26, 2017 | The Globe and Mail | HARVEY SCHACHTER.

Mr. Stephens does not believe we are seeing the death of retail. But we will need to see retail's reinvention, and soon. At the core will have to be the understanding that we don't need physical stores for distribution of goods, as Amazon has shown. But we will need them for experiences.

To his mind, Amazon is actually not a retailer. It's a data technology and innovation company that succeeds by ignoring the conventional wisdom of retailing and following its own ways. He notes that last year Macy's CEO Terry Lundgren said that while Amazon might pose some threat in apparel sales it would suffer because it was not prepared to handle complexities such as returns of items. But to Amazon, that's just another challenge to be handled by data and technology, as it is showing. When Amazon opened a physical store, it looked at retail through its own eyes and, in an age of mobile devices, eliminated cash registers, checkouts and lineups.

"But Amazon does not want to play in the physical experiences arena. They want to take the friction out of the equation. So if retailers can make the experiences in their stores rich, they can gain an edge," says Mr. Stephens. But most, of course, aren't all that effective for now, even at a basic level of romancing the customer, let alone the redesigned future he is calling for, where stores are redesigned around experiencing the product under consideration.
retailers  innovation  Amazon  Harvey_Schachter  experiential_marketing  Doug_Stephens  emotional_connections  contra-Amazon  slight_edge  physical_experiences 
september 2017 by jerryking
With 125 Ph.D.s in 15 Countries, a Quant ‘Alpha Factory’ Hunts for Investing Edge - WSJ
By BRADLEY HOPE
Updated April 6, 2017

The firm is part of the forefront of a new quantitative renaissance in investing, where the ability to make sense of billions of bits of data in real time is more sought after than old-school financial analysis.

“Brilliance is very equally distributed across the world, but opportunity is not,” said Mr. Tulchinsky, a 50-year-old Belarusian. “We provide the opportunity.”

To do this, WorldQuant developed a model where it employs hundreds of scientists, including 125 Ph.D.s, around the world and hundreds more part-time workers to scour the noise of the economy and markets for hidden patterns. This is the heart of the firm. Mr. Tulchinsky calls it the “Alpha Factory.”....Quantitative hedge funds have been around for decades but they are becoming dominant players in the markets for their ability to parse massive data sets and trade rapidly. Amid huge outflows, traditional hedge funds are bringing aboard chief data scientists and trying to mimic quant techniques to keep up, fund executives say.

Some critics of quants believe their strategies are overhyped and are highly susceptible to finding false patterns in the noise of data. David Leinweber, a data scientist, famously found that the data set with the highest correlation with the S&P 500 over a 10-year period in the 1990s was butter production in Bangladesh.
quantitative  Wall_Street  PhDs  alpha  investors  slight_edge  massive_data_sets  signals  noise  data_scientists  real-time  algorithms  patterns  sense-making  quants  unevenly_distributed  WorldQuant 
april 2017 by jerryking
Marginal gains matter but gamechangers transform
25 March/26 March 2017 | FT | by Tim Harford.

In the hunt for productivity, the revolutionary long shot is worth the cost and risk.

.............................As Olympic athletes have shown, marginal improvements accumulated over time can deliver world-beating performance,” said Andrew Haldane in a speech on Monday, which is quite true. Mr Haldane, the Bank of England’s chief economist
........The marginal gains philosophy tries to turn innovation into a predictable process: tweak your activities, gather data, embrace what works and repeat.......As Mr Haldane says, marginal improvements can add up.

But can they add up to productivity gains for the economy as a whole? The question matters. There is no economic topic more important than productivity, which in the long run determines whether living standards surge or stagnate.
........
The idea that developed economies can A/B test their way back to brisk productivity growth is a seductive one.

An alternative view is that what’s really lacking is a different kind of innovation: the long shot. Unlike marginal gains, long shots usually fail, but can pay off spectacularly enough to overlook 100 failures.
.....
These two types of innovation complement each other. Long shot innovations open up new territories; marginal improvements colonise them. The 1870s saw revolutionary breakthroughs in electricity generation and distribution but the dynamo didn’t make much impact on productivity until the 1920s. To take advantage of electric motors, manufacturers needed to rework production lines, redesign factories and retrain workers. Without these marginal improvements the technological breakthrough was of little use.
....Yet two questions remain. One is why so many businesses lag far behind the frontier. .......The culprit may be a lack of competition: vigorous competition tends to raise management quality by spurring improvements and by punishing incompetents with bankruptcy. ....
But the second question is why productivity growth has been so disappointing. A/B testing has never been easier or more fashionable, after all. The obvious answer is that the long shots matter, too.
.....In a data-driven world, it’s easy to fall back on a strategy of looking for marginal gains alone, avoiding the risky, unquantifiable research (jk: leaps of faith). Over time, the marginal gains will surely materialise. I’m not so sure that the long shots will take care of themselves.
adaptability  breakthroughs  compounded  economics  game_changers  incrementalism  innovation  leaps_of_faith  marginal_improvements  moonshots  nudge  organizational_change  organizational_improvements  organizational_structure  power_generation  production_lines  productivity  productivity_payoffs  slight_edge  taxonomy  thinking_big  Tim_Harford 
march 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
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
Goldman Sachs Has Started Giving Away Its Most Valuable Software - WSJ
By JUSTIN BAER
Sept. 7, 2016

Securities DataBase, or SecDB, the system remains Goldman’s prime tool for measuring risk and analyzing the prices of securities, and it calculates 23 billion prices across 2.8 million positions daily. It has played a crucial role in many of the seminal moments of the firm’s recent history, including its controversial trading just ahead of the financial crisis.....There is perhaps no better sign of the changes that have engulfed Wall Street than this: Goldman has recently started giving clients the tools that made it a trading powerhouse, for free.

The firm’s motives aren’t altruistic; rather, many of the edges that once made Goldman’s traders feared and admired have been blunted. New rules have limited banks’ trading risks, and made it costly to hold large inventories of stocks and bonds on their books. And electronic trading has squeezed margins, dimming the clamor of trading floors across Wall Street....Traders and executives tap into SecDB to inform how to price securities, and how the value of those assets may change with a twist on the dial on any one of thousands of potential variables. That information can be used to analyze potential trades—and then to monitor the risks posed by those positions.

What made it the envy of Wall Street, though, was its ability to scale up to include new classes of securities, new trading desks, even whole businesses. And the data it harnessed was all in one place.
Wall_Street  Goldman_Sachs  tools  traders  risk-management  informational_advantages  software  free  databases  platforms  CIOs  proprietary  slight_edge  Aladdin  Martin_Chavez  scaling  SecDB  seminal_moments  asset_values  scenario-planning  stress-tests 
september 2016 by jerryking
Why It’s Not Enough Just to Be Disruptive - The New York Times
By JEREMY G. PHILIPS AUG. 10, 2016

Short-term success may be driven by exceptional execution; long-term value creation requires building a defensible model.

Any microeconomics textbook will tell you there are limited sources of competitive advantage. The most valuable companies combine several reinforcing strands, like scale and customer loyalty.....

While it is hard to stay ahead solely through superior execution over an extended period, it is sometimes enough in the short term to draw a deep-pocketed buyer where there are strong, immediate synergies. Creating enormous value over the long term requires turning a tactical edge into some form of durable advantage....Superior tactical execution can still create real value, particularly where it provides ammunition for a bigger war (like Walmart’s battle with Amazon). And in the long term, value is created not by disruption, but by weaving together advantages (as both Amazon and Walmart have done in different ways) that together create a barrier that is hard to storm.
disruption  value_creation  Gillette  competitive_advantage  execution  books  slight_edge  Amazon  Wal-Mart  microeconomics  short-term  long-term  barriers_to_entry  compounded  kaleidoscopic  unfair_advantages  endurance  synergies  M&A  mergers_&_acquisitions 
august 2016 by jerryking
5 Ideas for CEOs Looking for an Edge - WSJ
1 AUG 2016

1 Three Reasons to Befriend Your Competition
(c) You can’t steal our real advantage: Business professors Adam M. Brandenburger of Harvard and Barry J. Nalebuff of Yale have comprehensively explored this idea in their book, Co-Opetition. They build the case that a smart business will leverage the strengths of another to go far beyond what can be done alone.

Here’s the key: I don’t worry about sharing with my competitors because I know that our greatest strength is the execution of our ideas, not the ideas themselves.
2 Why Companies Should Make Their Pay Transparent
leaders have a choice: Be open about pay, or leave a pay-information vacuum that staff will want to – and can – fill. Distrust is toxic within organizations, and employers who choose to hide information about compensation run the risk of staff thinking they are being deceptive – or worse.
3 CEOs, Your Employees Watch Your Every Move.
The CEO’s values trickle down through the organization and those messages flow through the entire organization. We give permission to everyone in the organization based on our behavior, much more than anything we ever say.
4 The New Tech Tools That Can Give All Employees a Voice
Social-enterprise tools can, as social era expert Nilfer Merchant once said, make “the 800-pound corporate gorilla act more like 800 gazelles – fast, nimble and collaborative.” She said that four years ago. Now it’s essential for corporations to finally buy in, whether they use services like Slack, HipChat, or create their own platforms to foster transparency and a better way to communicate. And, just as importantly, as a way to build purpose, community and put the entire company on the same page.
5. Why a Boss’s Appreciation Is So Crucial
Leaders who want to succeed and groom future leaders of the organization need to emphasize–and model–the importance of appreciation within the organization. While there are many ways to show appreciation, it can be as simple as saying thank you often–and meaning it.
competitive_advantage  execution  ideas  morale  gratitude  information_gaps  CEOs  slight_edge  workplaces  appreciation  transparency  millennials  gazelles  Slack  Adam_Brandenburger  Barry_Nalebuff  toxic_behaviors  Coopetition 
august 2016 by jerryking
How to approach your own career like an entrepreneur - Fortune
1. Choose growth over profitability. Rather than focus on short-term gains, think long-term goals and what you need to get there.
2. Bet on who you want to work with, not on where. Job seekers should invest in people, not ideas. That means pick the place you’re going to work for the people you’re going to work with. They’re the ones who will train you and lead you to other opportunities when the time comes.
3. Find your special sauce. Fetishize your product-market fit. This may be one of the hardest challenges in the new economy.
4. Celebrate uncertainty. Iterate. Seek feedback and adapt. Pivot where necessary.
5. Be public. Be on Linkedin. Give away hard-won information and knowledge, you’ll get something back. Be more transparent.

Nitin Julka was 31 and working like a dog in Cleveland when he got the itch. For six years he’d been a VP of his family’s business, a $20 million company that sold IT to schools. He had moved home after getting an MBA, excited to grow the company and make a difference in educational technology. It had been a “wild ride,” but he was ready for change. “I had no idea what I wanted to do,” he says. “I just knew I wanted to do something different.”

The jobs that interested him most were in tech. He started calling friends, friends of friends, business school classmates, and even distant contacts to talk about Bay Area companies and about what professional roles he might actually qualify for. After 30 or so conversations, he made up his mind: He wanted to be a product manager at a fast-growing Silicon Valley–based startup.

This struck few as a logical or even feasible next step for Julka: “I was changing job functions, industries, and geographies. People told me you can do one of those things—not all three at once.”

But Julka is more self-aware than most. On a quarterly basis, he conducts a life assessment and reviews what he considers to be his professional competitive advantage. Among his “most unique” attributes he lists his receptiveness to feedback. Indeed, in his quest for continual improvement, he has recorded personal and professional feedback in a single, running Google doc since 2010. He reads it once a week, when prompted by a recurring calendar invite.

And so began what Julka considers the “abnormal part” of his job search: He drew up a spreadsheet of 60 target companies, a few of which he researched for 60 to 80 hours (he admits he “overinvested”). He read 10-Ks and 10-Qs and a hundred CrunchBase articles; he mined his personal and virtual connections; he enlisted a friend, a former Google programmer, to tutor him in code; and he found free online videos from which he learned UX/UI design. With his wife’s support, he gave himself five weeks in Silicon Valley—no mean feat given that he had an 18-month-old baby at home. He met with three or more people a day, prepared a 48-page set of interview notes, and rode the highs and lows of pitching himself for a job that many thought he was an odd fit for.

It ended on a high. In September 2013 he got several job offers—including one, through a contact of his business school professor, at Bizo, a startup that has since been acquired by LinkedIn LNKD .

Julka may sound like a case study in craziness, a modern-day Ben Franklin whose entrepreneurial energy and efforts cannot be easily matched. But while he exists at one extreme, he’s the prototype for what it takes to navigate one’s career these days.

The truth is, wherever you are on the corporate ladder, whatever you do for a living, you’ve got to think like you’re launching a business from the ground up.

As LinkedIn co-founder Reid Hoffman and Ben Casnocha wrote in their zeitgeist-tapping book from 2012, The Start-Up of You, “All humans are entrepreneurs.” To accelerate your career in today’s economy, you’ve got to embrace that spirit and apply the Silicon Valley formula—“adapt to the future” and “invest in yourself”—no matter how comfortable in your job you might be.

Imagine you’re a founder. You’ve been working for days—years, really. (You can’t remember the last time you took a day off.) You’ve networked like crazy. And now, at last, you’ve landed one of those much-coveted meetings with a high-profile venture capital firm on Sand Hill Road.

the start up of you bookIt feels as though you’ve been waiting your whole life for this: You’ve prepared your slide deck, rehearsed your pitch, and honed your talking points. You’re ready to be grilled about even the finest details of your marketing and monetization strategies. You’ve gone so far as to research your VC’s hobbies. But the product you’re selling isn’t some whiz-bang app or the latest and greatest cloud-computing platform; the product is you.

Here’s where your potential backer steps in: What’s your competitive advantage, she asks? The questions come rapid-fire: What’s your addressable market? The opportunities for growth? Your five-year plan? Your 10-year plan?

You may not be used to thinking about your career in such calculating terms, but old standards like “follow your passion” get you only so far. You won’t get Series A funding, but the analogy is apt: If you are the startup, you’d better start answering to your inner VC.

“You’ve got to have a sense of purpose, authenticity, self-awareness, intellectual honesty, and the ability to navigate ambiguity,” says Hemant Taneja, managing director at General Catalyst Partners, a venture capital firm. That’s what he looks for in companies—and people—he invests in. Alan Braverman, an entrepreneur and angel investor who co-heads the Giant Pixel, a tech startup studio, speaks more bluntly: “What most people consider a safe career path, I consider falling behind.”

You don’t have to be a TaskRabbit (or a VC) to know that the world of work has changed. Technology, globalization, and one long recession—in which nearly one in six Americans reported losing a job, according to Princeton economist Henry Farber—have all disrupted old-fashioned employment. Corporations have downsized, outsourced, and rightsized. They slashed training budgets during the recession, and though that spending is coming back—up 15% in 2013, according to a Deloitte survey—corporate talent development is thought to be a dying art. “As companies see it, the incentives are just so perverse,” says Peter Cappelli, a professor of management at Wharton Business School. “Typically you train someone, and once they become useful, they’re hired away from you.” Meanwhile, the slow march of automation continues: Robots now fly planes, perform surgeries, and in some cases write news. That leaves you, dear worker, in a tight spot—whether or not you’ve got your dream job now, you’ve got to stay relevant and evolve.

That’s not as easy as it once was. The half-life of desirable skills has shortened with the hastening pace of technological change. (A Python programmer now eats the once-hot Java programmer for lunch.) Fabio Rosati, CEO of the online freelancing platform Elance-oDesk, says these dynamics are moving us from the era of employment to one of newfangled “employability.” Professionals, like the 9.3 million who find work on his site, are now being viewed as mobile, independent bundles of skills. In this universe the most adaptable talent rules the day. Increasingly, learning agility is an attribute sought in corporate leadership, says Vicki Swisher, a senior director at Korn Ferry, an executive search firm. What’s more, she says, it’s what employers are looking for in all new hires.

That agility is also mission critical for your personal enterprise (formerly known as your career path). Rather than climb a single corporate ladder like the company man of yore, you’re more likely to spend your career scaling a professional jungle gym, maneuvering between projects, jobs, companies, industries, and locales. By the reckoning of the Bureau of Labor Statistics’ latest job-tenure survey, you’ll pivot every 4.6 years (make that three if you’re a millennial, a demographic that will dominate the workforce in 2015). To do this well requires imagination, initiative, and some guts. Much like a startup, you’re forging your way ahead in a dynamic world where there is no conventional path.

“Get comfortable with being uncomfortable,” advises Mike Abbott, a general partner at Kleiner Perkins Caufield & Byers, who knows as an entrepreneur and as someone whose career zigged to Microsoft, Palm, and Twitter before it zagged to venture capital. In his case, he sought discomfort. “That’s how you learn the most.”

While the ideas of a free-agent nation and personal brand building have been with us for a couple of decades, DIY-career building has gotten a big push from the digital (and old-fashioned sharing) infrastructure that fosters this independence. There’s the rise in communal workspaces like WeWork and educational alternatives like Coursera, which offers college courses online, and General Assembly, which trains workers in the most in-demand tech skills. (As Julka’s case shows, YouTube and Google can also be empowering resources.)

A slew of online platforms has made it simpler to drum up employment, from one-off gigs to full-time jobs. Professionals can peddle their services, whether it be supply-chain management or legal advice, more easily and independently too, through sites like Elance-oDesk and TrustedPeer, which sometimes cater to big companies.

The data are messy on the size and shape of this new, more independent workforce. The BLS, whose classification system dates back to 1948, counted 14.4 million self-employed Americans in April 2014. That’s a far cry from the results of a study commissioned this year by the Freelancers Union and Elance-oDesk, which put the number of freelancers—a broader category that includes temps, part-timers, and moonlighters—at 53 million, or one in three American workers. (A report on freelancers … [more]
Ben_Casnocha  customer_growth  discomforts  Elance-oDesk  free-agents  gig_economy  invest_in_yourself  it's_up_to_me  job_search  large_companies  learning_agility  Managing_Your_Career  non-routine  personal_branding  pitches  preparation  product-market_fit  readiness  Reid_Hoffman  self-assessment  self-awareness  self-employment  Silicon_Valley  skills  slight_edge  special_sauce  start_ups  torchbearers  transparency  TrustedPeer  uncertainty  value_propositions  via:enochko  WeWork 
july 2016 by jerryking
Thane Stenner: Here’s where the wealthy get their investment ‘edge’
Mar. 02, 2016 | The Globe and Mail | THANE STENNER.

They have clear investment goals: High-net-worth individuals are obsessive goal setters. They always know why they’re investing (beyond “to make money”). They reverse-engineer their return objectives to meet both long- and short-term goals.

They know when to delegate: High-net-worth investors are not “do-it-yourself” investors.

They think risk first: High-net-worth individuals are generally focused on wealth protection as much as wealth generation.

It’s business: In general, high-net-worth investors tend to be good at “segregating” their emotions from their investment decisions.

They keep the news in perspective: Most wealthy individuals are news junkies. Of course they listen to, digest, and consider a lot of financial news. But the focus of their attention is on long-term trends, not necessarily up-to-the-minute financial data. And they think very, very carefully before making any decision based on news.

They seize the opportunity in crisis: Most high-net-worth individuals are born contrarians.
high_net_worth  slight_edge  investing  investors  rules_of_the_game  Thane_Stenner  goal-setting  contrarians  reverse_engineering  wealth_protection  kairos  impact_investing  passions  passion_investing  calm  Carpe_diem  Michael_McDerment  thinking_deliberatively  thinking_backwards  work-back_schedules 
march 2016 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
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
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
Open data is not a panacea | mathbabe
December 29, 2012 Cathy O'Neil,
And it’s not just about speed. You can have hugely important, rich, and large data sets sitting in a lump on a publicly available website like wikipedia, and if you don’t have fancy parsing tools and algorithms you’re not going to be able to make use of it.

When important data goes public, the edge goes to the most sophisticated data engineer, not the general public. The Goldman Sachs’s of the world will always know how to make use of “freely available to everyone” data before the average guy.

Which brings me to my second point about open data. It’s general wisdom that we should hope for the best but prepare for the worst. My feeling is that as we move towards open data we are doing plenty of the hoping part but not enough of the preparing part.

If there’s one thing I learned working in finance, it’s not to be naive about how information will be used. You’ve got to learn to think like an asshole to really see what to worry about. It’s a skill which I don’t regret having.

So, if you’re giving me information on where public schools need help, I’m going to imagine using that information to cut off credit for people who live nearby. If you tell me where environmental complaints are being served, I’m going to draw a map and see where they aren’t being served so I can take my questionable business practices there.
open_data  unintended_consequences  preparation  skepticism  naivete  no_regrets  Goldman_Sachs  tools  algorithms  Cathy_O’Neil  thinking_tragically  slight_edge  sophisticated  unfair_advantages  smart_people  data_scientists  gaming_the_system  dark_side 
december 2013 by jerryking
Venture Firms Build Own Software to Gain an Edge - WSJ.com
May 22, 2013 | WSJ | By EVELYN M. RUSLI.

Sequoia is one of a growing number of Silicon Valley venture-capital firms now creating proprietary software to gain an edge in the increasingly competitive industry.

Some are creating apps to scout potential deals by aggregating data across the Web and their community of companies. Others are building software—like Grove, named after clusters of sequoia trees—to help grow companies they have already invested in.
venture_capital  vc  Sequoia  slight_edge  Silicon_Valley  mobile_applications  data_driven  trends  proprietary  software  internal_systems  investors 
may 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
U.S. Crop Tour Draws Global Crowd - WSJ.com
August 26, 2012| | By IAN BERRY and OWEN FLETCHER
U.S. Crop Tour Draws Global Crowd
Increased Foreign Participation Reflects Price Volatility, International Demand.... the four-day Pro Farmer Midwest Crop Tour, which took place last week, and similar excursions by the increasingly high stakes of agricultural commodities and the chance to gain intelligence that could give them an edge on competitors.

The increased foreign participation in the crop tours comes amid higher volatility in corn, wheat and soybean futures markets in recent years and the heightened globalization of agriculture. The U.S. farm boom stems in part from the expansion of the middle class in China, which has led to increased meat consumption, fueling more demand for grains and soybeans to feed livestock.
commodities  food_crops  pricing  volatility  slight_edge  agriculture  futures_markets  high-stakes  market_intelligence 
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. ”
highly_skilled  insider_trading  Wall_Street  financiers  hedge_funds  Preet_Bharara  deterrence  Bay_Street  SEC  enforcement  patterns  misconduct  cost-benefit_analysis  slight_edge  trading  stealth  prosecutors  investigative_workups 
december 2012 by jerryking
As Netflix’s plot thickens, CEO strives to hone an edge
Sep. 10 2012 |The Globe and Mail | OMAR EL AKKAD - TECHNOLOGY REPORTER.

While such expansion helps to quickly build Netflix's customer base, it tends to hammer the bottom line. The company's business model relies on paying for content licenses up front, and then slowly making its money back through customer subscription fees. However, that means Netflix is currently losing money in many of its overseas markets – about $100-million a quarter from its United Kingdom and Latin America operations. Even in Canada, where Netflix constitutes the biggest single use of consumer Internet bandwidth, Netflix is only now starting to break even.
Netflix  Reed_Hastings  licensing  licensing_rights  subscriptions  streaming  web_video  challenges  opportunities  piracy  Omar_el_Akkad  competitive_landscape  digital_media  slight_edge 
september 2012 by jerryking
Want an edge? Call the CEO - The Globe and Mail
Jul. 03 2012 | The Globe and Mail | FABRICE TAYLOR.

Investing is a game of scarce advantages, yet an edge is difficult to come by in the stock market. You certainly don’t get one by just reading financial statements. A million others are doing that. Ditto with screening tools. They’re useful as a starting point but. again, they’re not exclusive to you.

It’s the same with the Internet. Any monkey can Google, so you’re not going to get an edge by spending hours scouring the darkest corners of the Web.

The only thing that can give you an edge is making connections that few others have, or interpreting what sources say to you.... No matter how much you read, how much time you spend, how elaborate your Excel model, you will never understand a business better than the CEO. Not only do they live and breath their work every day, and likely have for years, they also have information you don’t have. What you look at – the latest results – are dated. He or she has real time and, in fact, advance data.

Q1:one of my favourites is: “Who is the best analyst on your stock and why?”
Q2: Another good question for a CEO who doesn’t appear too promotional is whether it’s a good time to attract a lot of investor attention.

Sponge up insights about their companies and their suppliers, competitors and customers, as well as coming technological changes that could hurt or help a business....investing in one company on the basis of ideas received from another is a “bank shot,” like a basketball bouncing into the hoop. “The ability to look beyond just the numbers to see all different types of bank shots is something that can’t be replicated by a spreadsheet,”
slight_edge  CEOs  due_diligence  proprietary  informational_advantages  Communicating_&_Connecting  interpretation  real-time  questions  humint  financial_statements  insights  exclusivity  personal_knowledge  personal_connections  personal_meetings  personal_relationships  technological_change  bank_shots 
july 2012 by jerryking
Thinking Small
Aug 1, 2004 | Inc.com | John Grossmann.

Alan G. Robinson and Dean M. Schroeder "Ideas Are Free: How the Idea Revolution Is Liberating People and Transforming Organizations".
Her six-show-room chain thrives on new ideas. Fishbein collects them in three-ring binders. Since 1995, she's filled four such binders -- at 10 to 20 ideas per page and 200-plus pages per binder, that's more than 10,000 ideas. And the best ones, she says, often turn out to be those that at first appeared simple, even mundane. "The point," she says, "is not the big hit but incremental improvements all the time."

What about the killer app, the bold, outside-the-box brainstorm that is supposed to transform organizations? If you really care about making ideas work for you, forget such ambitious notions, say Alan G. Robinson and Dean M. Schroeder in their new book Ideas Are Free: How the Idea Revolution Is Liberating People and Transforming Organizations. Rather than big, competition-leapfrogging advances, the authors argue that one of the keys to business success is the constant implementation of small ideas -- just like the steady stream of employee suggestions Fishbein collects in her binders. Why singles instead of home runs? The competition inevitably copies or counters your home runs, rendering those gains ephemeral. But after studying idea-generation tactics at 150 companies in 17 countries, Robinson and Schroeder concluded that small ideas, especially those particular to processes or systems, improve companies in almost Darwinian fashion with ongoing small adaptations that are often impossible to copy.
business  innovation  idea_generation  execution  small_business  slight_edge  ideas  process_improvements  books  minnovation  breakthroughs  incrementalism  marginal_improvements  adaptability  leapfrogging  Darwinian 
july 2012 by jerryking
Entrepreneurs With an Edge - WSJ.com
November 6, 2000 | WSJ| By CHRISTINE LARSON.

Today, Americans at least 50 years old comprise fully 24% of Internet-business founders, according to Industry Standard, a technology trade journal. Older adults can be found in every e-business outpost, from mom-and-pop craft stores to multimillion-dollar public companies. They bring with them not only a wealth of experience, but an appreciation of old-fashioned business values such as customer service and tightfisted cost control.

Equally important, they often enjoy an economic and personal stability that can cushion the bumps of start-up life
aging  entrepreneurship  slight_edge  baby_boomers  retirement  Second_Acts  start_ups  seniorpreneurs  mom-and-pop  midlife  e-commerce 
july 2012 by jerryking
How to Build Your Network
December 2005 | HBR | Brian Uzzi and Shannon Dunlap.

Strong personal networks don't just happen at the watercooler. They have to be carefully constructed.Networks offer three unique advantages: private information, access to different skills and power. Leaders see the benefits of working every day, but perhaps not pause to examine how their networks are governed....Here's how to strengthen your connections.

Paul Revere was an information broker, a person who occupies a key role in a social network by connecting disparate groups of people....Networks determine which ideas become breakthroughs, which new drugs are prescribed, which farmers cultivate pest-resistant crops, and which R&D engineers makes the most high impact discoveries....When we make judgments, we use both public and private information. These days, public information is readily available from various sources, including the Internet, but precisely because it is so accessible, public information provides a competitive advantage much less than usual. Privacy, however, gathered from personal contacts that can offer something unique that can not be found in public spaces such as the release of a new product, the novel software code, or knowledge of this what a particular investigator seeks in candidates. Private information, therefore, may provide an advantage for executives, but is more subjective than public information, because it usually is not marked by an independent third party, such as Dun & Bradstreet. Therefore, the value of your private information to others and the value of your private information depends on how much confidence exists in the network of relationships....the best way to have a good idea is to have a lot of ideas....And when you trade information or skills with people whose experiences differ from your own, you provide one another with unique, exceptionally valuable resources....Power was repositioned in the network's information brokers, who could adapt to changes in the organization, develop clients, and synthesize opposing points of view.
These brokers weren't necessarily at the top of the hierarchy or experts in the field, but they linked specialists in the firm with trustworthy and informative ties.
networking  social_networking  social_capital  HBR  howto  networks  nonpublic  confidence  slight_edge  proprietary  relationships  exclusivity  public_information  private_information  inequality_of_information  homogeneity  heterogeneity  dual-consciousness  power_brokers  network_power  personal_chemistry  personal_connections  judgment  prolificacy  subjectivity  information_brokers  intentionality 
march 2012 by jerryking
Galleon Chief’s Web of Friends Proved Crucial to Scheme
MAY 11, 2011| NYT | by PETER LATTMAN AND AZAM AHMED. What made
Rajaratnam stand out was not his proprietary computer models nor his
skills in security analysis. Instead, colleagues marveled at the deep
set of contacts he had cultivated inside Silicon Valley executive suites
and on Wall Street trading floors.

Many of Mr. Rajaratnam’s tipsters came from the South Asian immigrant
community, a relatively small group of Indians, Pakistanis and Sri
Lankans who over the past several decades have made their mark in
finance and technology. ... .All these contacts formed the core of
Rajaratnam’s vast information network. From his office on Madison
Avenue, Rajaratnam collected data about technology companies and then
swapped it with sources across the globe. He spoke of getting an edge to
beat the stock market, and for Mr. Rajaratnam, that edge was
information.
insider_trading  hedge_funds  slight_edge  South_Asia  social_networking  immigrants  ethnic_communities  Raj_Rajaratnam 
may 2011 by jerryking
Seth's Blog: Information about information
Posted by Seth Godin on July 15, 2010.

information about information. That's what Facebook and Google and Bloomberg do for a living. They create a meta-layer, a world of information about the information itself.

And why is this so valuable? Because it compounds. A tiny head start in access to this information gives you a huge advantage in the stock market. Or in marketing. Or in fundraising.

Many people and organizations are contributing to this mass of data, but few are taking advantage of the opportunity to collate it and present it to people who desperately need it. Think about how much needs to be sorted, compared, updated and presented to people who want to choose or learn or trade on it.

The race to deliver this essential scalable asset isn't over, it's just beginning.
information_flows  Information_Rules  Seth_Godin  data_driven  competingonanalytics  overlay_networks  sorting  metadata  slight_edge  compounded  inequality_of_information  multiplicative  cumulative 
july 2010 by jerryking
Corner Office - Tachi Yamada and the Importance of Undivided Attention - Question - NYTimes.com
Feb. 27, 2010 | NYT | Adam Bryant's interview of Tachi Yamada,
M.D., president of the Bill & Melinda Gates Foundation’s Global
Health Program.
* Don’t micromanage, but have microinterests.
* Every moment counts, be 100 % in the moment.
* Intelligence = complex abstract thinking = human relationships. Look
for people who’ve moved.
* Humour, is an underestimated and important value.
* Leadership, in order to connect with groups of people, requires giving
of yourself.
* Turn battleships by making directional commitments and staying the
course,
* In giving feedback, the positive messages get lost in the one negative
message, and the negative message gets garbled.
* Figure out what your North Star is.
* Be open to new challenges.
* If there are 10 tasks in an overall project, identify the most
critical task among those 10. What is the one thing that everything
else hinges on (i.e. the linchpin)? Invest time in understanding that one thing. Then,
if/when the problem occurs, it usually occurs there.
billgates  philanthropy  CEOs  linchpins  Managing_Your_Career  career  feedback  hiring  leadership  focus  slight_edge  rate-limiting_steps  affirmations  humour  commitments  priorities  bottlenecks  abstractions  moments  attention  North_Star  monotasking  mindfulness  living_in_the_moment 
march 2010 by jerryking
At 3M, Innovation Comes in Tweaks and Snips
MARCH 1, 2010 | Wall Street Journal | By DANA MATTIOLI and KRIS MAHER
Dana_Mattioli  innovation  3M  slight_edge  Bottom_of_the_Pyramid 
march 2010 by jerryking
Contrary Rules for Business Success
Jun. 24, 2009 | The Globe & Mail | by Harvey Schachter.
Reviews The Moneymakers, by Anne-Marie Fink, Crown Business, 310
pages, $32. Fink gets paid to separate the wheat from the chaff in the
corporate world or, to put it in business terms, separate the
moneymakers from the destroyers of shareholder value. Fink is an equity
analyst with J.P. Morgan Asset Management, she has billions of dollars
resting on her assessment of companies and their management.
equity_research  investment_research  books  rules_of_the_game  book_reviews  Harvey_Schachter  slight_edge  signals  noise  value_creation  value_destruction  shareholder_value  JPMorgan_Chase 
february 2010 by jerryking
To get an investment edge, learn to recognize business stars
Feb 10, 2007 | The Globe & Mail pg. B.9 | by Avner
Mandelman. Therefore, if you invest, see yourself as a business fan, and
pay attention to individual business stars: Follow their careers, learn
what they do and how they do it, what they succeed in and where they
fail -- and try to remember what they look like. If you do that, you'll
often have an edge over those who don't. Sure, you must know the
numbers, too, and the industry. But if you can identify a young
business-Kobe-Bryant joining -- or quitting -- a company, you may take
the money of those who only see a press release. Star talent matters
greatly, both in sports, and in business.
Avner_Mandelman  sleuthing  scuttlebutt  proprietary  star_power  slight_edge  Bay_Street  sports  Pablo_Picasso  talent  personal_knowledge  pay_attention 
february 2010 by jerryking
Rajaratnam: Relentless Pursuit of Data - WSJ.com
OCTOBER 24, 2009 | Wall Street Journal | by GREGORY ZUCKERMAN
and ROBERT A. GUTH. The power of the "edge," as Mr. Rajaratnam called
it, also was reflected in how Galleon was organized. At most hedge
funds, traders are supposed to simply execute a firm's trades, which are
dictated by analysts and portfolio managers. Galleon had a different
approach: putting traders in charge of their own capital. A trader who
showed promise would sometimes be given $25 million to $50 million to
invest in a semi-autonomous fashion. To be sure, gathering information
is the lifeblood of most hedge funds. But when it is material, nonpublic
information about a company, it can expose a trader to accusations of
insider trading.
insider_information  Wall_Street  insider_trading  information_flows  private_information  hedge_funds  Raj_Rajaratnam  slight_edge  nonpublic  traders 
october 2009 by jerryking
Prudential Research Model May Have Been a Dinosaur
June 8, 2007, WSJ letter to the editor by a Mr. Scot Patterson.
Points out that deep-pocketed investors such as pension funds and
hedge funds are hungry for exclusive, specialized research that can give
them an edge over competition.
hedge_funds  equity_research  due_diligence  scuttlebutt  exclusivity  ProQuest  private_information  inequality_of_information  slight_edge  nonpublic 
march 2009 by jerryking
Seeking an Edge, Big Investors Turn to Network of Informants - WSJ.com
NOVEMBER 27, 2006 WSJ article by LAURIE P. COHEN profiling Mark
Gerson and his research firm, Gerson Lehrman. The firm is an
information broker to hedge funds and private-equity firms. These
private investment firms, which are loosely regulated, have Gerson
Lehrman Group, for information they hope will provide them with an
investing edge
research  investing  information  Gerson_Lehrman  proprietary  inequality_of_information  scuttlebutt  due_diligence  expert_networks  market_intelligence  slight_edge  private_information 
march 2009 by jerryking
Mining for Gold - WSJ.com
Interview with Deutsche Bank Asset Management CIO, Sean Kelly.
Details how the firm sorts through the clutter of information to gain an
edge.

THE WALL STREET JOURNAL: How is information technology strategically important for Deutsche Asset Management?

MR. KELLEY: In finance there is a concept called "alpha," which means that you make returns beyond the market as a whole. It's really what asset managers get paid for. For us technology is a sizable factor for creating alpha.

"There's a lot of information but also a lot of noise. You have to figure out algorithms to crawl through [all] this automatically, taking out 95% of the noise and finding signals that indicate the emotions of the market. That's the thing: The information doesn't have to be correct -- it just has to be dominant. A person doesn't have to be right. It just has to be that everyone thinks that way. So if you can figure out ways to get to that information and act on it before the market has a chance to correct itself, it gives you an added edge."
alpha  Deutsche_Bank  data_mining  slight_edge  information_overload  competingonanalytics  CIOs  sorting  noise  signals  informational_advantages 
january 2009 by jerryking

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