Description: The sales pitches go something like this: A mutual fund that promises to zig when the rest of the stock market zags. Bond funds that protect investors when interest rates rise. Access to the most sophisticated hedge fund managers in the country, even if you’re not particularly wealthy. Source: NYTimes.com Date: Oct 25, 2013… Read more »
Posts Tagged: Derivatives
Is JPMorgan Getting a Bad Deal?
Description: In resolve a handful of state and federal investigations, JPMorgan Chase (JPM) has tentatively agreed to pay $13 billion—more, as my colleague Nick Summers points out, “than the combined salaries of every athlete in every major U.S. professional sport, with enough left over to buy every American a stadium hot dog.” Thirteen billion is also… Read more »
In defense of hedge funds
Description: Despite plenty of press indicating hedge funds do not beat the broader market, SkyBridge Capital founder Anthony Scaramucci says he can pick winners. Source: CNNMoney.com – video report Date: Oct 18, 2013 Link: http://money.cnn.com/video/investing/2013/10/18/investing-hedge-funds-return-anthony-scaramucci-skybridge-baseball.cnnmoney/index.html Questions for Discussions: What do you think of Anthony Scaramucci’s metaphorical comparison of hedge fund managers to baseball players? Do… Read more »
How money managers deal with D.C. gridlock
Description: Money managers sound off on the shutdown that has clients pulling their money out of the markets. Source: CNNMoney.com – video report Date: Oct 09, 2013 Link: http://money.cnn.com/video/news/2013/10/09/n-money-managers-shutdown-washington.cnnmoney/index.html Questions for Discussions: What are the different ways money managers are responding to the concerns over political gridlock? Which strategy has been the most successful thus… Read more »
A Treasury Shortage Squeezes the Heart of the Market
Description: Considering the trillions of dollars of Treasury bonds the federal government has been selling to pay for its budget deficits, you’d expect there to be plenty of them for use by dealers in the financial markets. Instead there’s a drought, one that’s likely to get worse before it gets better, and it’s already interfering… Read more »
Bet against Chipotle? Bad move
Description: Chipotle short sellers like investor David Einhorn feel the sting as shares of the popular Tex-Mex chain soar on strong earnings. Source: CNNMoney.com – video report Date: Apr 19, 2013 Link: http://money.cnn.com/video/investing/2013/04/19/investing-the-buzz-chipotle.cnnmoney/ Questions for Discussions: Summarize the price movements and the reasons for them? Why do you think they continue to do well?
Why bond funds and ETFs are breaking
Description: End of an era? Bond portfolios, investor hopes show wear and tear Source: Marketwatch.com – video report Date: Mar 29, 2013 Link: http://www.marketwatch.com/story/why-bond-funds-and-etfs-are-breaking-bad-2013-03-29 Questions for discussion: Explain the reasons for difficulties facing bond fund managers? How are they responding? Are there any alternatives that have not been considered?
When David Einhorn Talks, Markets Listen—Usually
Description: It was shaping up as an especially good episode of The David Einhorn Show. The founder of the $8.8 billion hedge fund Greenlight Capital was speaking in May 2012 at his favorite venue, the Ira W. Sohn Investment Research Conference, held that year at New York’s Lincoln Center, to a packed audience of money… Read more »
How Big Losses Distorted JPMorgan’s Sense of Reality
Description: Time-tested wisdom on Wall Street is that when a trade you made is losing money, you should swallow hard and get out of the position before things get even worse. Cut your losses. But when JPMorgan Chase (JPM) started losing big on its London Whale trade last year, traders and executives all the way… Read more »
Facebook Gets a Multibillion-Dollar Tax Break
Description: It hasn’t drawn much attention, but Facebook’s first annual earnings report contains an accounting gem: a multibillion-dollar tax deduction for the cost of executive stock options and share awards. Source: Businessweek.com Date: Feb 14, 2013 Link: http://www.businessweek.com/articles/2013-02-15/facebook-gets-a-multi-billion-dollar-tax-break#r=hp-lst Questions for Discussions: Why is the tax treatment of stock options a controversial issue? In your opinion,… Read more »
