CalPERS: Why All the Fuss?
Much has been made of California Public Employees’ Retirement System’s (CalPERS) decision to redeem some $4 billion of its assets from hedge fund investments. However, less is made of the fact that CalPERS manages some $300 billion in funds. This means that...Discount Hedge Funds – Is This the Wave of the Future?
Even ardent defenders of hedge fund fee structures must acknowledge the impact a marketplace open to retail investors may have on the status quo. Is the hedge fund 2 and 20 rule going the way of the banking industry’s 3-6-3 rule? Disruption It is no revelation...Argentina – Victim or Victimizer
The retail credit universe is dominated by the FICO score. A consumer with a low FICO score will pay higher interest rates or suffer rejected credit requests. Similarly, a nation’s borrowing power is governed by scores from rating agencies. Moody’s, Standard and...First: Do No Harm
There are equivalencies that can be drawn between the physician’s Hippocratic Oath to patients, and the hedge fund’s primary responsibility to its clientele. Just as the physician pledges to do no harm, the hedge fund manager has a similar charge with respect to...Imitation: The Most Sincere Form of Flattery
Most following the hedge fund industry are acutely aware that globally, hedge funds have more than $2.2 trillion in assets under management (AUM). This is a staggering sum by any measure and it continues to grow quarter over quarter. However, mutual funds remain the...Regulators Shift Enforcement Focus to Hedge Fund Marketing Practices
The removal of restrictions on general solicitation, a consequence of the Jumpstart Our Business Startups (JOBS) Act, has created new opportunities for the U.S. Securities and Exchange Commission (SEC) to probe the depth of hedge fund pockets. The National Examination...Insider Trading—A Regulatory Minefield
If the Internal Revenue Service is the governmental agency most feared by Americans in general, then the U.S. Securities and Exchange Commission (SEC) is the agency most feared by Wall Street, in general, and by hedge funds in particular. Illegal insider trading has...A Pen, a Telephone, and the SEC?
Hardly a day passes without news of one financial scandal or another in the financial services industry, particularly hedge funds, with SAC Capital Advisors, LLC being one of the higher profile examples. Colossal Fines The Security and Exchange Commission (SEC) has...Hedge Fund Groupthink – Real or Imagined
The implication of some in the financial media is that hedge funds and hedge fund managers are demonstrating a groupthink or herd mentality with respect to the investments they are making. The argument, which seems ludicrous, may or may not have merit. Of course,...Are You Paid What You Are Worth? Find Out.
