Systemic Risk in the Hedge Fund Industry: Risks arising from the liability side of hedge fund balance sheets:
Thursday, 08 February 2007 | 5:32 am
Are hedge funds banks? Some people seem to think so. In particular a research report, excerpts of which are available at http://ftalphaville.ft.com/blog/2007/02/07/2365/the-great-unwind-is-coming-warn-dresdner-pair/ , draw comparisons between Citadel and Deutsche Bank’s investment banking division. The similarities are remarkable. For a long time there has been a preference for hedge funds set up by proprietary traders as
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Hedge Fund Strategies: The Outlook for 2007
Monday, 05 February 2007 | 12:00 am
We are no better off letting the weatherman predict the economy and the economist predict the weather… having said that, let us press on. Stock selection: Stock selection strategies and strategies that profit from an increase in specific risk will find more opportunities this year. The withdrawal of liquidity by central banks of US, UK,
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Hedge Funds: Excellent Scapegoats, an example of what could have happened
Sunday, 04 February 2007 | 12:00 am
Hedge funds are secretive, or private businesses who shun the limelight. Their success and sometimes spectacular implosions make them excellent news material and often a target for sensationalists. They are also excellent scapegoats. Here is an example of how this can be done: Assume now that you are the ruler of a small emerging market
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A word about global financial markets based on the preceding world view
Wednesday, 31 January 2007 | 12:00 am
Reflecting the strength of global economic growth has been rising equity markets where the MSCI World index has risen 13.60% in the last 12 months. The main disappointment has been Japan where the broad market had risen but 5.84%, a number masking devastation among small and micro caps. Where investors were cautious and somewhat negative
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A word about the global economy
Monday, 29 January 2007 | 12:00 am
There is considerable uncertainty regarding the state of the US economy. For the better part of 2006 the US economy was thought to be under inflation risk. The Fed Funds rate has, however, been left unchanged in 4 of the last FOMC meetings, this since a sharp correction in energy prices has taken pressure of
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