Wednesday, June 20, 2007

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 Top Stories


Centaurus hedge fund controls almost 5 pct of Greek Alpha Bank - sources
Source: Forbes
The hedge fund Centaurus controls, directly and indirectly, almost 5 pct of Greek Alpha Bank, sources close to the matter said to Thomson Financial News. More...

Merrill seizes $800M from hedge funds
Source: CNN Money
Merrill Lynch has seized about $800 million of assets from troubled hedge funds managed by Bear Stearns, throwing in doubt the chances that the funds will survive. More...


Citadel Solutions heads to Bermuda
Source: ICFA Online
Citadel Solutions, the recently launched hedge fund administration subsidiary of Citadel Investment Group, has been granted a license to operate in Bermuda. More...

BlackRock May Purchase Stakes in Startup Hedge-Fund Managers
Source: Bloomberg
BlackRock Inc., the largest publicly traded U.S. asset manager, is considering buying minority stakes in hedge-fund managers to raise profit from one of the fastest growing areas of asset management. More...

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

  Term of the Day & Related News

Short Selling

In finance, short selling is selling something that one does not (yet) own. Most investors "go long" on an investment, hoping that price will rise. Short sellers borrow a security and sell it, hoping that it will decrease in value so that they can buy it back at a lower price and keep the difference. For example, assume that shares in XYZ Company currently sell for $10 per share. A short seller would borrow (say) 100 shares of XYZ Company, and then immediately sell those shares for a total of $1000. If the price of XYZ shares later falls to $5 per share, the short seller would then buy 100 shares back for $500, return the shares to their original owner, and make a $500 profit. In a given year about 2% of stocks on the New York Stock Exchange are sold short. More...
 
Related News:

The Coming 130/30 Short Selling Flood: Time To Face the Fee Transparency Music
Source: SeekingAlpha
Managing a hedge fund requires a veritable arsenal of trading tools. Among them are the trusty duo of leverage and short-selling. The arms merchants in these pitched financial battles are the prime brokerages - the bank divisions that cater to the needs of nearly all hedge funds. Apparently, it’s good work if you can find it. Hedgeworld cites a new study that pegs the industry at “$8 billion to $10 billion annually”.
More...

Private Equity Squeezes the Shorts
Source: BusinessWeek
It has never been more popular to bet against stocks. Once the realm of a few specialists, the financial alchemy of turning a garbage stock into gold by shorting it has moved into the mainstream: The strategy is now employed routinely by thousands of individual traders, hedge funds, mutual funds, and others.
More...

  Scholarly Article & Related News

A Quantitative Analysis of Hedge Fund Style and Performance
by Claus Bang, Christiansen Peter, Brink Madsen, & Michael Christensen
In this analysis we identify dynamic hedge fund strategies quantitatively pursuing a Principal Component Analysis following Fung & Hsieh (1997). We extract five dominant hedge fund strategies each representing similar investment styles and analyse the performance of each strategy by employing a multi-factor model comprising both market indices and passive option strategies along the lines of Agerwal & Naik (2000). We find that that such passive option strategies play an important role in explaining hedge fund returns...
More...

 
Related News:

Advanced strategies to wealth
Source
: RockyMountTelegram.com
Quantitative investing is used by professional portfolio managers who develop cutting edge mathematical models to identify patterns among decades worth of stock prices and other financial market data. The ultimate goal is to find previously successful investment strategies and apply that knowledge to help consistently outperform the market over time.
More...

Explore The Role Of Quantitative Techniques In Modern Risk Management
Source
: BusinessWire
Research and Markets (http://www.researchandmarkets.com/reports/c60050) has announced the addition of “Estimating Risk” to their offering.

Andy Garlick's book explores the role of quantitative techniques in modern risk management. Risk management has grown in importance in most organisations in the last 20 years, but in many remains simply a matter of processing lists of risks and actions. The author argues that this fails to make the most of the techniques available and that organisations can improve their risk decision making by using risk models.  More...

  Top Stories by Category
  Book of the Day & Related News

   
Timing the Trade
by Tom O'Brien
Average Customer Review: 5.0 
out of 5 stars
Price: $88.00
 
 
Book Description
Tom O'Brien takes you from "training wheels to rocket science" in his new, all-encompassing hardcover book, Tom O'Brien's Timing The Trade. Inside, Tom will take you through his entire trading system with detailed coverage of Volume Principles, Fibonacci Analysis, Swing Points, and more! Thousands of traders all over the world have already benefited from Tom's disciplined approach to trading, and now you can learn all the tools he uses each day in trading the markets. Whether you are an experienced trader or just learning the basics, this book is an absolute "must have" in any traders library.

Related News:

So is Our Market Timing Off, or Not?
Source: SeekingAlpha
The problem with making market calls is that you are bound to be wrong. It seems our view at the moment is a bit off of the market beat.
More...

4 Simple Steps to Better Market Timing
Source
: TradingMarkets.com
TradingMarkets members and regular readers know that our philosophy is to look for short-term oversold conditions within the context of a longer-term up trend. In other words, we like to buy short-term market weakness. This philosophy comes from our quantitative research into how markets really work. More...

 

  Personal Interest


New York Mayor Leaves GOP
Source: Forbes
Speculation that Mayor Michael Bloomberg was interested in a third-party presidential run was merely simmering last summer when he was asked about the idea of leaving the GOP and becoming an independent.

The billionaire mayor pointed out that the Republican Party had given him an opportunity to get elected in 2001, when he switched his lifelong Democratic registration to avoid a crowded primary. More...


Final Inspection As Shuttle Heads Home
Source: ABC News
Space shuttle Atlantis headed for Earth on Wednesday as its crew awaited the results of a final heat shield inspection. More...

 

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   Top Stories (Continued)


Hedge fund opposes PHH plan to sell itself
Source: Reuters
Business services company PHH Corp. (PHH.N: Quote, Profile, Research) is facing shareholder opposition to its plan to split up and sell itself, according to a regulatory filing on Wednesday. More...

Jeremy Warner's Outlook: Hedge funds act to head off the regulators
Source: The Independent
With all eyes on private equity for today's mauling by the House of Commons Treasury Select Committee, this might seem an odd moment for hedge funds to announce they are clubbing together to draw up industry-wide standards of conduct. Hedge funds have been out of the limelight since unions began targeting private equity as the capitalist whipping boy of choice. It might have been better for hedge funds to keep quiet and let private equity else take the flak. More...


Most hedge funds positive on India: K&A Sec
Source: Moneycontrol.com
Sushil Kedia, Head of Institutional Equities, K&A Securities, is of the view that yesterday’s sharp run-up was nothing but a short-squeeze. He thinks that shorts still exist and would recommend a stop loss above 4,240. If the 4,240 levels are crossed, he would look to buy at 4,140-4,180.

Kedia feels that on extreme short-term charts the Nifty looks overbought. He added that most hedge funds remain extremely positive on India. More...

Treasurys Slip As Investors Hedge Bets
Source: Forbes
U.S. Treasury bond prices slipped Wednesday morning, as the market showed no overt sense of concern over trouble at hedge funds run by Bear Stearns. More...

UK hedge funds ‘just window dressing’
Source: FT Alphaville
A hedge fund working group set up to examine voluntary standards for the industry was dismissed as “window dressing” on Tuesday by the head of the GMB union, which has led criticism of the private equity industry. Paul Kenny, GMB general secretary, said the government should probe the sector, not leave it to set its own standards. More...

US hedge funds face subprime shutdown
Source: ThisIsMoney.co.uk
Two of America's biggest hedge funds - worth a combined £10bn just weeks ago - could be shut down after a last-ditch rescue plan put together by the biggest names on Wall Street looked to have failed. More...

Hot Hedge Fund Strategies: How To Get In!
Source: CNBC
130/30, 120/20, 140/40. No, they're not prescriptions from your eye doctor. They are the latest trend in the investing world, that allows traditional, long-term investors to use shorting to boost returns. More...

Weill Says Big Is Beautiful; Hedge Fund Disagrees
Source: The New York Times
Sanford Weill, the retired chairman of Citigroup, recently told Bloomberg News that the bank’s enormousness isn’t a disadvantage. “Being large and having a strong balance sheet enables a company to withstand the financial turmoil that happens every now and then in global markets,” he said.
More...


Today's Stories unabridged on the web
 

 
   Today's Humor

The man walked over to the perfume counter and told the clerk he'd like a bottle of Chanel #5 for his wife's birthday.

"A little surprise, eh?" smiled the clerk.

"You bet," answered the customer. "She's expecting a cruise."

 

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