Posted on 09/09/2008 2:53:54 PM PDT by tcostell
Hedge Fund Request Ping
mark
Interesting. So how’s business these days?
Well, thanks for the update.
ptsal
Good read. Thanks.
Fine for me, worse for some others.
The public perception of hedge funds is largely attributable to the headline-grabbing failures of two specific subcategories of the large species known as “hedge funds”: the basically one man shops that turn out to have been have been total frauds, usually from day one, sending out phony statements or deviating wildly from their stated investment strategy without mentioning it to their investors until it was too late; and the large funds using astronomical leverage (think LTCM). Some hedge funds stopped calling themselves hedge funds for a few years after the LTCM debacle, insisting on being called “private investment funds” instead, in an attempt to distance themselves from the stigma associated with “hedge funds”.
Nice job. There might be a case or two, here or there, where a couple of hedge funds have been accused in colluding on stock price manipulation, and you may have glossed over some of the risk and the leveraging and maybe even how the incentive structure could encourage the occasional blowout risk, but a good basic overview.
But as I'm sure you know, there have been more than a few FR members who like to blame hedge funds for anything that's gone wrong anywhere as well.
Well it’s just a couple of pages ... I glossed over all kinds of things... but I’ll be happy to speak to any other issues raised.
That said, all the wailing and gnashing of teeth about hedge funds these days is usually followed in the next breath with a rant about the @!#$%&^**!! high cost of oil on the futures markets and the effects of “rampant speculation” on the cost of gasoline at the pump. And, although there has been some easing in prices recently, there is still a lot of ill will toward traders. The actual fact of speculation in the oil futures market is, of course, being simultaneously both proclaimed and denied by various market "experts".
Overall, it is a bit confusing.
Can you offer an insider's opinion/perspective on the role (if any) that speculation may have played in the run up in fuel prices earlier this year?
ping for later reading
NOT one thin dime of my tax dollars should be spent bailing out millionairs. Period. If they can't take the risk, they should stay out of the fund.
I’d be interested in your take on how end of the quarter drawdowns might affect some funds.
More, please.
Nice post. Thanks.
Seems to me that hedge funds attract envy and resentment against self-made rich guys because, well, that’s where so many self-made rich guys are.
There is also the issue of who and what is "speculation". United Airlines is speculating when it buys oil for delivery next year, and no one complains about that. (nor in my opinion should they)
My point is, if people are complaining about trading then it's unjustified because those people have a very short investment horizon, and will be pushing down tomorrow what they are pushing up today.
One good rule of thumb is that if the Democrats in congress say it's bad, then it's either good, or irrelevant.
In the specific case you mentioned, I think it was irrelevant.
bump
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