Strategy Spotlight: Equity long short, One Manager's Approach
Friday, 27 February 2009 | 9:19 am
While 2008 was a difficult year for many hedge fund managers, there are those who have done well despite the difficult trading conditions. I would like to highlight one of them, not so much for their performance, which has been good, in 2007 the manager returned over 25% and in 2008 over 10%, but because
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FX, an Alternative View on Asian Currencies
Thursday, 26 February 2009 | 8:36 am
We have a crisis in debt that started in the US housing sector, that spread to the US financial system and then to the US economy. As a result, Asian equity markets and economies have suffered far worse than the US or Europe. Makes perfect sense, doesn’t it? It does. And it will have some
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The Hedge Fund Industry. State of the Craft Feb 2009.
Tuesday, 24 February 2009 | 12:57 pm
Its going to be harder to make money. Equity long short is correlated to equity markets. Equity long short managers in aggregate tend to have chronic long biases which introduce positive correlation to equity markets. In aggregate. Particular managers, however, will have particular styles which may offer diversification and downside control. Its all in the
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A Quick Note About Correlation
Monday, 23 February 2009 | 12:15 pm
Whole chapters in statistics textbooks are written about correlation and we are not talking about option pricing or credit default pricing here, just simple correlation. I thought it would be illustrative to simply display a couple of charts of returns data and their corresponding correlations. Here is example 1. The blue line is a fund
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If It Works, It Won’t
Saturday, 21 February 2009 | 1:48 pm
As the world ponders market interventionist bail outs and mass nationalizations we risk abandoning the free market which has created the prosperity of the last 100 years. Yet even the experts, and that champion of free markets himself Alan Greenspan advocates a temporary detour from free markets to save the current situation. The first priority
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