Asset Liability Management of a Hedge Fund
Friday, 09 February 2007 | 5:23 am
Yesterday we looked at how hedge funds resembled banks. In fact they look pretty much like the result of the dismemberment of banks. Now lets look in a bit closer, at the capital structure of a hedge fund. To a corporate treasurer, a hedge fund would look like a very strange animal. The hedge fund
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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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