Friday, September 7, 2007

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 Top Stories


Harvard, Yale Hedge-Fund Investment May Be Eased by Levin Plan
Source: Bloomberg
Representative Sander Levin said he plans to offer a measure allowing universities such as Harvard, Yale and Stanford to invest in hedge funds in the U.S. without incurring a tax penalty. More...

Man Investments sees turmoil as opportunity
Source: Reuters UK
Cash-rich hedge funds are likely to spot investment opportunities in the financial market turmoil which has hit a few of their high-profile rivals, a senior official at Man Investments said on Thursday. More...

SAC Raised $1 Billion in August as Fund Declined 3% (Update1)
Source: Bloomberg
SAC Capital Advisors LLC, the hedge- fund firm run by Steven Cohen, raised $1 billion from investors in August as the company's biggest fund fell 3 percent. More...

Salus Launches Equity Long/Short Index Hedge Fund
Source: FINalternatives
Zug, Switzerland-based fund of funds shop Salus Alpha Management is launching the Salus Alpha Equity Hedged Fund, which will invest in an index comprising up to 30 long/short equity managers. The subscription period for the new offering ends today. More...


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

  Term of the Day & Related News

Diversification

Diversification is a measure of the commonality of a population. Greater diversification denotes a wider variety of elements within that population. Diversification is of central importance in investments. Diversification reduces the risk of a portfolio. It does not necessarily reduce the returns. This is why diversification is referred to as the only free lunch in finance. More...
 
Related News:

The Closest Thing to a Free Lunch
Source
: The Motley Fool
Getting some international exposure in your portfolio may be one of the best things you can do as an investor. Why? Because such exposure -- whether through individual stocks, mutual funds, or exchange-traded funds -- generally provides you the same or even higher potential returns but at lower risk.
More...

A world tour for your portfolio
Source
: The Sydney Morning Herald
Parochial investors who ignore foreign equities may be missing out on diversification.

Australian investors are playing it safe, continuing to invest heavily in the local sharemarket at the expense of international equities, according to a recent survey. More...

  Scholarly Article & Related News

Is Corporate Diversification Beneficial in Emerging Markets?
by Karl V. Lins and Henri Servaes
Using a sample of over 1000 firms from seven emerging markets in 1995, we find that diversified firms trade at a discount of approximately 7% compared to single-segment firms. Diversified firms are also less profitable than single segment firms, but lower profitability only explains part of the discount. We find a discount only for those firms that are part of industrial groups, and for diversified firms with management ownership concentration between 10% and 30%...
More...

 
Related News:

Emerging-Market Bonds Rose After U.S. Jobs Reports Spur Demand
Source: Bloomberg
Argentina paced gains in emerging- market bonds after U.S. reports on jobs eased concern the turmoil in credit markets will curtail growth in the world's largest economy.

Investor demand for riskier securities such as developing nation debt and stocks rose after reports showed rising worker productivity and expansion in service industries. A continued expansion in the U.S. will help maintain demand for the exports of emerging-market economies.
More...

Emerging market central banks sell some U.S. Treasuries
Source: Reuters
Emerging market central banks, concerned about the global credit squeeze of recent weeks, probably sold a portion of their U.S. Treasury holdings to offset capital outflows, but the trend may be short-lived.
More...

  Top Stories by Category
  Book of the Day & Related News

   
What Is Short Selling?
by Tom Taulli
Average Customer Review: 3.0 
out of 5 stars
Price: $9.60
 
Book Description
Despite what many investors believe, short selling can be a risk-averse strategy for traders and investors alike. What Is Short Selling? provides a complete introduction to the basics and nuances of short selling, including: How to bolster portfolio performance How to spot an excellent short sale candidate Hedging and speculating.

Related News:

Level playing field needed for short selling?
Source: Moneycontrol.com
The Reserve Bank has agreed to the scheme, Sebi has approved it and the exchanges have said they are prepared to launch it. So what's holding back institutional short selling & stock lending and borrowing being a reality.
More...

Defending short sellers, at least in the short term
Source
: USA Today
Q: Are short sellers the reason stocks are falling so much lately?

A: Whenever the stock market falls, bullish investors blame short sellers.

Shorts are investors who make money when stock prices fall. Short sellers borrow stock from other investors, sell the shares and then wait. If the stock falls, the short sellers buy the shares back at a lower price, return them and pocket the differenece in price. More...

 

  Personal Interest


Toyota’s Top U.S. Executive Is Joining Chrysler
Source: The New York Times
For a generation, waves of Detroit auto executives have been defecting to foreign rivals.

On Thursday, the tide took a surprising turn, with Toyota’s highest-ranking American executive, James E. Press, being named co-president at Chrysler. More...

Colts crush Saints in season opener
Source: Reuters
The Super Bowl champion Indianapolis Colts kicked off the new NFL season with a ruthless 41-10 win over the New Orleans Saints on Thursday. More...

 

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   Top Stories (Continued)


Financial Institutions May Drive Hedge Fund Industry Consolidation
Source: EarthTimes.org
Larger financial institutions will increasingly purchase hedge fund firms, potentially fueling industry consolidation over the next three years, according to a survey conducted by CPA firm Rothstein Kass. Rothstein Kass today released "Capturing the Opportunity in Hedge Funds," a report summarizing the findings of a survey of U.S.-based hedge fund firms. More...

Hedge-Fund Billionaires Eyed by Congress for More Medicare Tax
Source: Bloomberg
James Simons, the highest-paid hedge-fund manager in the U.S. last year, could pay enough in Medicare taxes to provide health insurance for about 4,800 senior citizens. More...


'Magic' throws tax opinions into ring
Source: Telegraph.co.uk
Former basketball player Earvin "Magic" Johnson has emerged as one of the most unlikely players in the increasingly heated debate on whether to raise taxes for the US private equity industry. More...

Man Group raises green hedge fund
Source: FinancialNews-US.com
Investors have placed almost $400m (€290m) in a climate change-related hedge fund backed by Man Group, the world’s largest hedge fund management firm. More...

Subprime crisis tests hedge funds
Source: The International Herald Tribune
You could say that this summer's credit crunch was a chance to see the hedge fund emperors without their clothes.

As banks around the world tightened access to money, on concern that borrowers' collateral was impaired by exposure to subprime loans, some of the highest-profile upsets were reported in the $1.7 trillion hedge fund industry. More...

BlackRock President Leaving
Source: Forbes
BlackRock Inc. president and co-founder Ralph L. Schlosstein is resigning to start an asset-management firm focused on alternative investments, according to a person familiar with Schlosstein's thinking. More...

Hedge Funds Expand in Primary Lending
Source: Forbes
Hedge funds are increasingly positioning themselves as direct lenders to companies that are having trouble borrowing money from banks or through the bond market. More...

Milwaukee hedge fund buys stake in Ryerson
Source: Chicago Business News
A pair of Milwaukee-area hedge fund operators has purchased a 7.5% stake in metals distributor Ryerson Inc., according to a regulatory filing.

Michael Roth and Brian Stark, the founders of Stark Investments in St. Francis, Wis., recently bought 2 million Ryerson shares, the filing with the Securities and Exchange Commission on Thursday said.
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
The manager of a large office asked a new employee to come into his office. "What is your name?," was the first thing the manager asked.

"John," the new guy replied.

The manager scowled. "Look, I don't know what kind of a namby-pamby place you worked at before, but I don't call anyone by their first name! It breeds familiarity and that leads to a breakdown in authority," he said. "I refer to my employees by their last name only - Smith, Jones, Baker - that's all. Now that we got that straight, what is your last name?"

The new guy sighed and said, "Darling. My name is John Darling."

The manager said, "Okay, John, the next thing I want to tell you..."
 

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