End Of Quarter Dance at The Hedge Funds Weblog

The action we are seeing in the US market is good old fashion window dressing.And what is Window dressing, its when funds buy stocks that have been winners and sell losers. Why in the world would anyone need to do that in modern times at the end of each Quarter. Maybe because Money is not as smart as it looks from the outside. As a trader I shake my head [...] Read More


Hedge Funds performance disappoints in the second quarter at The Hedge Funds Weblog

As hedge funds gain popularity and the amounts of money under management steadily increase, some observers point out, that their long record of outperforming the leading stock indexes could get in danger. Recent performance reports unveil some disappointing facts: Hedge funds have not done what it says on the tin. Hedge funds failed to provide the positive returns they often claim amidst the recent downturn of the markets. A one [...] Read More


Hedge Fund Journal’s Funds of Hedge Funds/ Newedge Release Top 50 Research at The Hedge Funds Weblog

The top 50 funds are certainly managing less, but they are not out of the game. Smaller funds, of course, are facing an even tougher time. Chicago-based Hedge Fund Research (HFR) has reported that over 200 funds of hedge funds liquidated in 2009. This is a significant increase on the last quarter and represents an annual attrition rate of over 8%; nearly double the previous record set in Q4 2008. [...] Read More


Hedge funds lied to investors at Sox First

Hedge funds have been badly exposed in a new study Trust and Delegation . Hedge funds were instrumental in buying bad securities and and helping bring the world's financial system to its knees.The study found that half the hedge funds (49%) lied and misled investors. "We find that misrepresentation about past legal and regulatory problems is frequent (21%), as is incorrect or unverifiable representations about other topics (28%),'' the researchers [...] Read More


The Growing Clout of Hedge Funds at Sox First

Interesting piece in the Wall Street Journal about how distressed power producer Calpine's pending bankruptcy is highlighting the growing clout of hedge hunds to force changes in corporate strategy.The WSJ piece is for subscribers so here's a summary: the hedge funds are among the biggest holders of Calpine's $17 billion debt and some have taken positions set to push the company into Chapter 11.Corporations traditionally borrow from banks and mutual [...] Read More