I have to admit the psychology behind the sort of decision to invest in a hedge fund that admits to grossly under performing every benchmark intrigues me and does show that Kahneman and Tversky were on the money when they said that money induced glitchy thinking and caused us to depart dramatically from the basic…
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This is rather like clubbing seals….. With four years to go in his bet with New York hedge fund firm Protégé Partners , Berkshire Hathaway’s Warren Buffet is sitting in the catbird seat. The Oracle of Omaha made a 10-year bet six years ago that money invested in an S&P index fund would outperform a…
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What could possibly go wrong….. When Douglas Kobak was an adviser at a large brokerage firm, he suggested his wealthiest clients buy a hedge fund promising to be “a very conservative alternative to bonds.” Then the credit crisis hit in 2008, the fund imploded and investors got 45 cents on the dollar — as long…
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Hugh Hendry is the manager of the boutique fund Eclectica. Whilst we see the world in different ways I find him to be interesting because of his ability to construct a cohesive, articulate narrative and the way he shines a light on the inner workings of a hedge fund.
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I have only seen the abstract of this article so far. However, the abstract as usual does give away the plot since it states – We provide direct evidence on the effect of financial expertise on investment outcomes by analyzing private portfolios of mutual fund managers. We find no evidence that financial experts make better investment decisions…
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In 2008, Porsche was cruising. The luxury car manufacturer generated $13.5 BN in pre-tax profit, and sold a record 98,652 automobiles — a staggering $136K profit per car sold. Even for a luxury brand, the numbers seemed nearly impossible. Upon closer inspection, $11.5 billion dollars of that profit wasn’t from selling cars — it was from speculating on financial…
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So you want to be a fund manager, sit on a pile of money, move it from here to there and from there to here. Wear a suit everyday to work, a silk tie and maybe have one of those heavy Swiss watches on your wrist. Sounds nice, right? Well I have good news for you.…
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In the past I had always been impressed with Steve Cohen, it seemed that he along with Jim Simons were among the tiny handful of hedge fund managers who deserved their wealth. Cohen appeared to actually generate alpha – that is a return well above his benchmarks. Now the image has lost some of its…
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