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Top Stories |
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Last Night in One Room: Kravis, Milken & Whitehead
Source:
The New York Times
Not since Michael Milken’s Predators’ Ball in the 1980’s have so
many of Wall Street’s bold-faced names dared to mingle together.
Until last night.
More...
New S.Africa hedge funds at record in '07 - survey
Source: Reuters Africa
A record 33 hedge funds were launched in South Africa in the
year to end-June and there is room to grow the burgeoning
industry, a survey said on Tuesday.
More...
RAB May Double Asia Assets
to $2 Billion in a Year, Barker Says
Source:
Bloomberg
RAB Capital Plc, the hedge fund manager best known for its
natural resources investments, may double Asian assets to $2
billion within a year, said Rod Barker, director of business
development and distribution.
More...
The Inaugural Hedge Fund Activism & Shareholder Value Summit
Source: Institutional Investor
IMN is pleased to announce the Inaugural Hedge Fund Activism &
Shareholder Value Summit. This unique investor-focused
conference will bring lawyers together with hedge fund
executives and other institutional investors for a serious and
unscripted exchange of ideas, concerns and insights about the
state of hedge fund participation in the securities marketplace
and its impact on investors.
More...
More of Today's
Stories continued below... or
Today's Stories unabridged on the
web
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Term of the Day & Related News |
Short Selling
In finance, short
selling or "shorting" is a way to profit from the decline in
price of a security, such as a stock or a bond. In contrast,
investors who "go long" with an investment hope the price will
rise.
To profit from the stock price going down, short sellers can
borrow a security and sell it, expecting that it will decrease
in value so that they can buy it back at a lower price and keep
the difference. The short seller owes his broker, who usually in
turn has borrowed the shares from some other investor who is
holding his shares long; the broker itself seldom actually
purchases the shares to lend to the short seller. The lender of
the shares does not lose the right to sell the shares. While the
shares are lent, two investors have a right to sell the same
shares. This has happened in 2007 in the UK with dramatic
results, when shares in a Bank, Northern Rock, were £12 in
February 2007 and £2 in September. Short sellers made over £1
billion in about seven months.
More...
Related News:
Short selling:
Profit from overpriced stocks
Source:
The Economic Times
Short selling of shares is when the seller does not own
the shares. The sale is completed by delivery of a
security borrowed by the seller. Short sellers assume
that they will be able to buy the stock at a lower
amount than the price at which they sold short. Short
sellers make money if the stock goes down in price.
More...
Three Risks Every
Short-Seller Must Know
Source:
TheStreet.com
In the previous two installments of The Finance
Professor, I covered the mechanics of a short stock sale
and the trading strategies that underpin short-selling.
Now to close out this trilogy of short-selling lessons,
I will focus on the inherent risks in short-selling and
how you can manage these risks.
More... |
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Scholarly Article & Related News |
Takeovers, Freezouts, and Risk Arbitrage
by
Armando Gomes
This paper develops a dynamic model of tender offers in
which there is trading on the target's shares during the
takeover, and the bidders can freeze out target shareholders
(compulsorily acquire remaining shares not tendered at the
bid price), features that prevail on almost all takeovers.
We show that trading allows for the entry of arbitrageurs
with large blocks of shares who can hold out a freezeout-a
threat that forces the bidder to offer a high preemptive
bid. There is also a positive relationship between the
takeover premium and arbitrageurs' accumulation of shares
before the takeover announcement, and the less liquid the
target stock, the strong this relationship is...
More...
Related News:
Fantasy M&A is back
Source:
FT Alphaville
And it’s more tortuous than ever. We first noticed the
trend towards the end of last year - a tendency for
research analysts to play at being corporate financiers,
making up stories as to who might bid for what, when,
why and how.
The game became serious when even some of the more
outlandish M&A ideas started to come true - but waned
over the summer, of course, when the LBO boom got
crunched.
More...
Buyers to ‘benefit’
from M&A market
Source:
icWales
THE mergers and acquisitions market in Wales remains
buoyant – despite the crisis that hit the money markets
last month, an analyst said yesterday.
A study by accountants and business advisers PKF in
association with Deal Drivers UK showed a slowing
outside Wales after a ramping up of deals in the last
quarter.
More... |
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Top Stories by Category |
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Book of the Day & Related News |
Book Description
Two pioneers and innovators in the money
management field present their choice of
groundbreaking, peer-reviewed articles on
subjects including portfolio engineering and
long-short investment strategy. More than
just a collection of classic review pieces,
however, Equity Management provides new
material to introduce, interpret, and
integrate the pieces, with an introduction
that provides an authoritative overview of
the chapters. Important and innovative, it
is destined to become the "Graham and Dodd"
of quantitative equity investing. |
Are 130/30 funds
such a bright idea?
Source:
IFAonline.co.uk
The 130/30 phenomenon has certainly arrived and judging
by the media hype, investors should be clamouring to
cash in the new strategy.
Threadneedle, UBS and JP Morgan are among the investment
houses to launch or announce upcoming 130/30 ventures,
but Chelsea Financial Services managing director Darius
McDermott has warned advisers to be cautious when
approaching this "new fad”.
More...
UBS to launch UK
long/short fund
Source:
Investment Week
Matthew Cox is to manage UBS’s second foray into the
long/short market with a UK-focussed launch planned
early next year.
Cox has been running a 100-stock model portfolio since
December 2006 using 40-70 long positions and 30-50
shorts and the fund can range between 110/10 to 140/40.
More...
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Personal Interest |
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Discovery Heads for
Space Station to Expand Interior (Update1)
Source:
Bloomberg
NASA's shuttle Discovery blasted off today for a
two-week mission to the International Space Station,
where astronauts will expand its living and working
quarters for the first time in six years.
More...
Bush seeks billions
more in military funding
Source:
The Los Angeles Times
Setting up another confrontation with congressional
Democrats over the war in Iraq, President Bush on Monday
sent Congress a $45.9-billion emergency funding request
for expenses related to U.S. military campaigns around
the world.
More...
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