Hedge Funds in general were up 0.13% in June and are now up 9.41% year to date.
See link for details
Showing posts with label Hedge Funds. Show all posts
Showing posts with label Hedge Funds. Show all posts
Saturday, August 1, 2009
Wednesday, July 1, 2009
Banks or Hedge Funds
A Story within the Story
Following the collapse of the biggest credit bubble in history, there has
been no shortage of finger pointing and the hedge fund industry, which has
always had an uncanny ability to be at the wrong place at the wrong time,
has yet again been at the centre of attention. And politicians, keen to divert
attention away from themselves as the true culprits of the crisis through
years of regulatory neglect, have been quick at picking up the baton.
Admittedly, the hedge fund industry is guilty of many stupid things over
the years, but blaming it for the credit crisis is beyond pathetic and the
suggestion that increased regulation of the hedge fund industry is going to
prevent future crises is outrageously naïve.
If you prohibit private investors from investing in hedge funds which on
average use 1.5-2 times leverage but permit the same investors to invest in
banks which use 25 times leverage and which are for all intents and
purposes bankrupt, then you either don’t understand the world of finance
or you don’t want to understand. Shame on those who fall for cheap tactics
Following the collapse of the biggest credit bubble in history, there has
been no shortage of finger pointing and the hedge fund industry, which has
always had an uncanny ability to be at the wrong place at the wrong time,
has yet again been at the centre of attention. And politicians, keen to divert
attention away from themselves as the true culprits of the crisis through
years of regulatory neglect, have been quick at picking up the baton.
Admittedly, the hedge fund industry is guilty of many stupid things over
the years, but blaming it for the credit crisis is beyond pathetic and the
suggestion that increased regulation of the hedge fund industry is going to
prevent future crises is outrageously naïve.
If you prohibit private investors from investing in hedge funds which on
average use 1.5-2 times leverage but permit the same investors to invest in
banks which use 25 times leverage and which are for all intents and
purposes bankrupt, then you either don’t understand the world of finance
or you don’t want to understand. Shame on those who fall for cheap tactics
Monday, March 30, 2009
Inside the world's biggest hedge fund
Bridewater Founder Ray Dalio had a great year last year. His fund, Pure Alpha generated a return of 14% when 70% of hedge funds lost money last year and the average fund fell 18%.
Where does Dalio think then economy is going? He call it a D-process, which is when an economy has an unsustainable high debt burden and monetary policy ceases to be effective (interest rates being close to zero) and as a result the central banks has no way to stimulate the economy. To compensate, the value of debt must be written down (depression) or the central bank must print money (inflation).
The level of debt as % of GDP in the US has skyrocketed past the previous highs last seen in the early 1930s.
Dalio's view is that stocks will get materially cheaper and that we will have to go through an important debt restructuring program; lots of assets will be going on sale and there will be a shortage of buyers.
Hedge funds will not be immune. Hedge funds are 75% correlated to the S&P.
Fortune Magazine - March 30, 2009
Where does Dalio think then economy is going? He call it a D-process, which is when an economy has an unsustainable high debt burden and monetary policy ceases to be effective (interest rates being close to zero) and as a result the central banks has no way to stimulate the economy. To compensate, the value of debt must be written down (depression) or the central bank must print money (inflation).
The level of debt as % of GDP in the US has skyrocketed past the previous highs last seen in the early 1930s.
Dalio's view is that stocks will get materially cheaper and that we will have to go through an important debt restructuring program; lots of assets will be going on sale and there will be a shortage of buyers.
Hedge funds will not be immune. Hedge funds are 75% correlated to the S&P.
Fortune Magazine - March 30, 2009
Wednesday, March 18, 2009
Monday, March 9, 2009
Hedge funds turn to gold
Something to thing about...purchasing some Gold.
I like Peter Munk quote...regarding governments solution to the crises by printing money...."that will end in tears".
*******************
Fiancial Times
By Henny Sender in New York and Javier Blas in London
Published: March 8 2009
Hedge fund investors who made money last year by betting against investment banks are now buying gold as a way of betting against central banks.
The gold bulls include David Einhorn, founder of hedge fund Greenlight Capital, who last year came under the spotlight for his short selling of shares in Lehman Brothers, after arguing that the bank did not have enough capital to offset its exposure to falling property prices. Other funds looking at gold include Eton Park and TPG-Axon, investors said.
Their belief in bullion is being expressed even as gold prices have retreated from last month’s break above the $1,000 an ounce level. Spot gold in London closed last Friday at $939.10, after falling last week to $900.95 an ounce.
Investors such as Mr Einhorn are turning to gold because they are worried about the response of the US Federal Reserve and other central banks to the global economic crisis. A bet on gold is essentially a bet against all paper currencies.
“The size of the Fed’s balance sheet is exploding and the currency is being debased. Our guess is that if the chairman of the Fed is determined to debase the currency, he will succeed,” Mr Einhorn wrote in a recent letter to his investors. “Our instinct is that gold will do well either way: deflation will lead to further steps to debase the currency, while inflation speaks for itself.”
Mr Einhorn’s comments – and the revelation he is buying gold itself – are in line with the views held by other large institutional investors in Europe, according to bankers in London. The head of commodity sales at one major bullion bank told the Financial Times that he had never been so busy dealing in gold for large investors in his life.
Goldman Sachs, Morgan Stanley and UBS all forecast the gold price will surge above $1,000 this year. Peter Munk, chairman of Barrick Gold, the world’s largest miner of bullion, told investors last week that all countries have embarked on policies that will favour gold.“The only option to governments is to print and print more money,” he said. “That will end in tears.”
In the past, hedge funds, which depend on absolute returns to earn high fees, had avoided gold because it does not produce any yield and costs money to store and insure. But those issues have become less important as central banks have pushed interest rates to nearly zero, reducing the yields on currencies.
I like Peter Munk quote...regarding governments solution to the crises by printing money...."that will end in tears".
*******************
Fiancial Times
By Henny Sender in New York and Javier Blas in London
Published: March 8 2009
Hedge fund investors who made money last year by betting against investment banks are now buying gold as a way of betting against central banks.
The gold bulls include David Einhorn, founder of hedge fund Greenlight Capital, who last year came under the spotlight for his short selling of shares in Lehman Brothers, after arguing that the bank did not have enough capital to offset its exposure to falling property prices. Other funds looking at gold include Eton Park and TPG-Axon, investors said.
Their belief in bullion is being expressed even as gold prices have retreated from last month’s break above the $1,000 an ounce level. Spot gold in London closed last Friday at $939.10, after falling last week to $900.95 an ounce.
Investors such as Mr Einhorn are turning to gold because they are worried about the response of the US Federal Reserve and other central banks to the global economic crisis. A bet on gold is essentially a bet against all paper currencies.
“The size of the Fed’s balance sheet is exploding and the currency is being debased. Our guess is that if the chairman of the Fed is determined to debase the currency, he will succeed,” Mr Einhorn wrote in a recent letter to his investors. “Our instinct is that gold will do well either way: deflation will lead to further steps to debase the currency, while inflation speaks for itself.”
Mr Einhorn’s comments – and the revelation he is buying gold itself – are in line with the views held by other large institutional investors in Europe, according to bankers in London. The head of commodity sales at one major bullion bank told the Financial Times that he had never been so busy dealing in gold for large investors in his life.
Goldman Sachs, Morgan Stanley and UBS all forecast the gold price will surge above $1,000 this year. Peter Munk, chairman of Barrick Gold, the world’s largest miner of bullion, told investors last week that all countries have embarked on policies that will favour gold.“The only option to governments is to print and print more money,” he said. “That will end in tears.”
In the past, hedge funds, which depend on absolute returns to earn high fees, had avoided gold because it does not produce any yield and costs money to store and insure. But those issues have become less important as central banks have pushed interest rates to nearly zero, reducing the yields on currencies.
Subscribe to:
Posts (Atom)