Friday, July 27, 2007

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 Top Stories


Goldman Bets Hedge Money of Its Own
Source: The New York Times
 The equity proprietary trading desk at Goldman Sachs, where traders make bets on stocks with the bank’s own capital, is the American Idol of the trading world. More...

Hedge Funds Ride Greater China Wave
Source: FINalternatives
Hedge funds investing in the Greater China region are still reaping the benefits of the long China story and new funds are entering the market in droves. Sources say that the number of existing hedge funds has doubled in the region with total assets under management increasing by more than 100% in the past few years. More...

Simons's Renaissance Fund to Trim New Cash as Returns Trail
Source: Bloomberg
Hedge-fund manager James Simons plans to trim new investments in the $29 billion Renaissance Institutional Equities fund, the industry's largest, as returns trail competitors and the Standard & Poor's 500 Index. More...

Sabre To Launch Asia Long/Short Hedge Fund
Source: FINalternatives
London-based Sabre Fund Management is gearing up to launch an Asia ex-Japan equity long/short fund in October. The firm hopes to launch the Sabre Asian Absolute Return Fund with US$25 million. More...


More of Today's Stories continued below...  or  Today's Stories unabridged on the web

  Term of the Day & Related News

Risk Arbitrage

This strategy involves transaction-specific analysis seeking to profit by acquiring securities which are discounted from the value to be paid for them in a proposed merger or acquisition due to the uncertainty of transaction timing and completion. The difficulty is in analyzing the risk of delay or non-completion and determining when during the period from the commencement of a proposed merger or acquisition to the conclusion (successful or unsuccessful) of the transaction it is most efficient — on a present value basis — to take a position. Risk/merger arbitrage Portfolio Managers typically seek speculative profits from the purchase of shares in forecasted acquisition targets, while maintaining defensive positions through hedges in acquiring companies and disciplined risk management. More...
 
Related News:

Can gutsy India Inc make M&As work?
Source
: The Economic Times
Research on mergers and acquisitions (M&A) has been decidedly gloomy in the recent past, with every other report concluding that most of them don’t work and end up destroying value. Not that the academic insights have had any perceptible effect on the global M&A juggernaut, which moves on with happy momentum, especially in India. But still, it’s nice to have a research report that’s actually gung-ho on M&A, even if it does come from a consulting firm that’s actually in the business of making M&A work.
More...

Credit freeze may help corporate buyers: M&A chief
Source
: Reuters
The tougher credit conditions and higher borrowing costs currently roiling markets are expected to scuttle some planned leveraged buyouts (LBOs) as private equity dealmakers find it harder to make the numbers work. More...

  Scholarly Article & Related News

Quantitative Selection of Long-Short Hedge Funds
by Kaifeng Chen & Alexander Passow
We develop a quantitative model to select hedge funds in the long-short equity sector. The selection strategy is verified on a survivorship-bias-free hedge fund database, from January 1990 to September 2002. We focus on the hedge funds acting exclusively in the U.S. market. We identify Fama-French factors and GSCI as the risk factors.
More...

 
Related News:

Traditional managers look beyond 130/30 strategic vision
Source: FinancialNews-US.com
A growing number of traditional managers are encroaching on hedge fund turf. They are particularly keen to market short-extension strategies that go 30% short and 130% long. But some want to travel further along the hedge fund convergence trail; they want to move towards 140/40 and beyond.
More...

ProfitScore Launches Multi-Manager, Long/Short Product
Source: FINalternatives
Boise, Idaho-based ProfitScore Capital Management is hoping that the second time is a charm for its latest hedge fund offering. The firm recently developed a quantitative multi-manager equity long/short product and is currently shopping it to hedge fund investors. So far, the firm has landed a $30 million institutional client and aims to attract some $200 million in assets by year-end.
More...

  Top Stories by Category
  Book of the Day & Related News

   
Trends in Commercial Mortgage-Backed Securities
by Frank J. Fabozzi
Price: $89.68
 
 
 
Book Description
Mortgage-backed securities are becoming an increasingly popular tool for constructing a solid portfolio in today's turbulent market. Frank Fabozzi leads more than a dozen experts in examining all the latest trends of this investment strategy, providing in-depth insight and explaining key areas of the commercial mortgage-backed securities landscape.

Related News:

UPDATE: Bear Stearns Seizes Assets Of Its High-Grade Hedge Fund
Source: CNNMoney.com
Bear Stearns Cos. said late Thursday that it seized assets from its High-Grade Structured Credit Strategies Fund after the hedge fund suffered huge losses in mortgage-backed securities and structured- finance markets.
More...

UPDATE 4-Nomura Q1 profit quadruples, may exit US subprime
Source
: Reuters UK
Nomura Holdings (8604.T: Quote, NEWS , Research), Japan's largest brokerage, posted a surprise quadrupling of quarterly net profit on strong sales of investment trusts and a few big deals, but said it may pull out of the troubled U.S. mortgage market. More...

 

  Personal Interest


Casar wins 18th stage after crash
Source: CNN.com
Sandy Casar, riding for the Francaise des Jeux team, picked himself up after crashing into a stray dog to win the 211km 18th stage of the Tour de France from Cahors to Angoulemeon Friday. More...

Movie Review: The Simpsons Movie
Source: Monsters and Critics
Four years in the making. A budget of $70 million. A cast of thousands (and one pig with an overactive lower intestine). There are 11 writers and three producers.

And at the centre, the beating heart of America’s best known dysfunctional family. More...

 

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   Top Stories (Continued)


HK to ease short-selling curbs soon, boost volume
Source: Yahoo! Asia
Hong Kong's stock exchange plans to suspend a rule soon that bars short-selling shares which are falling, an exchange official said, a move analysts say benefits hedge funds and large brokers but spurs volatility. More...

Money man's hobby a laughing matter
Source: The Denver Business Journal
By day, Justin Borus runs a hedge fund. By night, he runs a comic strip.

To his clients, Borus is a general partner at Denver's Lazarus Investment Partners LLLP, the man who makes them money on microcaps.  More...


Hedge fund FRM says U.S. CEO to leave
Source: Reuters
Financial Risk Management (FRM), a $12 billion fund that invests in hedge funds, said on Thursday that Andy Brindle, chief executive of its U.S. unit, will leave, its second U.S. CEO to leave in less than a year. More...

Hedge Funds' Best Practices in Security
Source: Dark Reading
TekFinancial Solutions™ (www.tekfinancialsolutions.com), a division of Tekmark® Global Solutions, LLC, (www.tekmarkinc.com) which integrates financial services and information technology to create business-driven solutions for financial institutions, has created a list of factors hedge funds should consider when selecting network technology. More...

Investors Flee Risk Here And Overseas, Posing Threat To Stock-Boosting Deals
Source: CNNMoney.com
Thursday's 312-point 18op in the Dow came care of a widening realization that tightening credit markets are reversing the tide of easy money supporting surging stocks and record buyouts this year despite a weaker economy. More...

Let the Blame Begin
Source: MSNBC
Who's responsible for the subprime mess? Not us, say the lenders that made risky mortgage loans to consumers. Similar denials come from the Wall Street firms that bought, packaged, and sold the loans to investors; the bond-ratings agencies that said those investments were safer than they turned out to be; and the hedge funds that gorged on them. As the allegations fly, various players are busy issuing disclaimers and pointing fingers at everyone else. More...

New investor wave buys into films after early kinks
Source: Reuters
A new wave of investors is scooping up stakes in films from private equity and hedge funds that have poured $10 billion into Hollywood but are losing patience with long wait for profits, industry watchers say. More...

Senior hedge fund managers give back
Source: FinancialNews-US.com
Philanthropic foundations established by hedge fund managers amassed $3.5bn (€2.6bn) over the last few years, according to Absolute Return magazine, as the alternative firms boast record inflows. 
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
Since he runs a pawnshop, I decided to ask a friend of mine to appraise my grandfather's violin.

"Old fiddles aren't worth much, I'm afraid," he explained.

"What makes it a fiddle and not a violin?" I asked.

"If you're buying it from me, it's a violin. If I'm buying it from you, it's a fiddle."
 

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