Hedge Fund Ethics

Hedge Fund Ethics

hedge fund ethics and reputationIn the hedge fund industry you have one name and one reputation. If you ruin that you could have influential people in the industry refusing to do business with you for 15-20 years after their initial opinion is formed. In such a competitive close vested industry where large profits can be made the temptation to cut corners or look past fiduciary duties is sometimes too much.

The FBI recently had agents posing as a Florida-based hedge fund manager to nab 10 individuals in 5 kickback schemes connected to securities sales. The SEC charged 10 individuals and the U.S. Attorneys office charged six with criminal offenses.

In each case the posing hedge fund manager told the targets that their actions must be kept secret because it violated his fiduciary duties, making it explicitly known that what was going on was illegal and un-ethical. “This case illustrates the Commission’s ability to work together with criminal authorities in creative ways to uncover fraudulent schemes and to protect our markets,” Linda Chatman Thomas, the head of the SEC’s enforcement division, said.

Bottom Line: If you are smart enough and hard working enough to be successful then you don't need to ever cut corners and blatantly break securities laws. Innovation and relationships are the competitive advantage that should make you extremely profitable, not cheating the system.

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

Read dozens of additional articles related to Hedge Fund Jobs by visiting the Hedge Fund Employment Guide.

- Richard

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Related Terms: SEC, Securities Exchange Commission, attorney, Hedge Fund Law, hedge fund fraud, hedge fund kickbacks, securities laws, hedge fund scheme, FBI, hedge fund fiduciary duty, hedge fund ethics, hedge fund code of ethics, hedge fund security sales, hedge fund reputation, hedge fund profits

Hedge Funds in Greenwich CT

Hedge Funds in Greenwich, CT

Greenwich CT Hedge Funds Outperform

greenwich hedge funds outperformThe Greenwich Global Hedge Fund Index is up over 10.5% year-to-date as of 12.12.07. These are strong returns considering that the index as a whole dropped 1.61% in November.

Hedge funds’ performance, which was less severe than that felt by the equity markets, highlights their unique ability to limit the downside,” said Ben Rossman, senior vice President at Greenwich Alternative Investments.

Read more articles like this within the Hedge Fund Performance Category of this hedge fund blog.

- Richard

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Hedge Fund Job Advice

Hedge Fund Job Advice

hedge funds job adviceHere is an email I got earlier today:

"I have passion for investing/trading and want to build my career in hedge funds. I am trying to break into the field, so far with no luck. I came across your blog and writing today to see if you could give me some advise on how to land into a full time hedge fund job. I have gone through your blogs and book and admire your helping attitude. I am attaching my resume for your reference..."

I get a lot of emails about how to obtain a job within the hedge fund industry, how to start networking, or get your foot in the door. Here is my general response to these emails:

Breaking into this industry is all about getting up to speed on the norms of hedge funds and then networking.

1. I would buy Hedge Me - a great book on the hedge fund industry the career path options you have, the compensation and major firms in the industry. Here is a review I wrote on the book and a link to buy it if you are interested: Hedge Me Book Review

2. I would continue to read my blog at HedgeFundBlogger.com, subscribe to this hedge fund blog by email (http://www.feedburner.com/fb/a/emailverifySubmit?feedId=1049915) or download all of my past blog posts at http://hedgefundsbook.com/

3. I would call 30 hedge fund managers and ask them to have coffee or lunch. You need to get some face-to-face time with people in the position you want to obtain and hedge fund managers themselves.

4. If it would help I have written a blog post on what hedge fund managers typically look for in resumes: http://richard-wilson.blogspot.com/2007/10/hedge-fund-resumes.html

5. If you want to learn more about the industry here are my favorite hedge fund books: http://astore.amazon.com/ra07-20

6. Read Posts on HedgeFundMessageBoard.com and Join the Hedge Funds Group on Linkedin.com. After joining introduce yourself within the "New Member Introductions" thread within the message board. To join please visit this link: http://www.linkedin.com/groupInvitation?groupID=44059&sharedKey=5FC1F8699305

I have recently found an individual willing to help improve your hedge fund or investment resume. If you would like 1-4 hours of resume editing, coaching and career guidance please send me an email at Richard@RichardCWilson.com.

- Richard

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Related Terms: Hedge Fund Job, Hedge Fund Employment, Hedge Funds Careers, Hedge Funds Positions, Hedge Fund salary, Hedge Fund Compensation, Hedge Fund Job Listings, Hedge Fund Recruiter, Hedge Fund Recruiters, Hedge Fund Employers, Hedge Fund Job Options, hedge funds group, hedge fund networking

Sovereign Wealth Funds in the Middle East & Asia

Sovereign Wealth Funds in the Middle East & Asia

sovereign wealth funds asia and middle eastChina Investment Corporation
Size: 1.47 trillion yuan (£100 billion)
Major investments: Blackstone $3 billion

Size: 929.2 billion yuan (£64 billion) at December 2006.
Major investments: Recently bought 6 per cent stake in Bear Stearns for $1 billion

China Development Bank
Size: 2,314 billion yuan (£150 billion) at December 2006.
Major investments: Bought 3.1 per cent in Barclays for £1.6 billion.

Size: $108 billion (£54 billion)
Major investments: Barclays £2 billion, Standard Chartered £4.25 billion

Size: $100 billion to $330 billion (estimate)
Major investments: £4.8 billion stake in UBS

Abu Dhabi Investment Authority
Size: $875 billion
Major investment: Citigroup $7.5 billion

Dubai International Capital
Size: €6 billion (estimate)
Major investments: “Substantial stake” in HSBC.

Size: $8 billion (estimate)
Major investments: Standard Chartered, $1 billion

- Richard

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Full Article/Source: Business Times

Hedge Fund Trends Video

Hedge Fund Trends

Hedge Fund Trends Video

Direct Video Link: http://www.youtube.com/watch?v=0T-BH8cvkJE

Tired of reading articles? Watch more videos like this one above within the Hedge Fund Videos Directory.

- Richard

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Hedge Funds Use Litigation to Exert Influence

Hedge Funds Use Litigation

hedge fund litigationLitigation is becoming more and more a part of the everyday world of hedge funds. Funds are finding themselves in courtrooms in any number of different roles.

Hedge funds have increasingly turned to lawsuits as tools with which to influence the management of the companies in which they have invested. One newsworthy example of this is the high-profile InfoUSA lawsuit. InfoUSA's founder, Vin Gupta, is accused of corporate waste on a scale of millions of dollars. He is accused of using company funds and assets to curry favor with Bill and Hilary Clinton (in the form of flights on the corporate jet and other items), as well as paying for an 80-foot yacht and condos in Hawaii and California with company money. Hedge fund Dolphin Limited Partnership brought the lawsuit along with investment manager Cardinal Value Equity Partners.

The lawsuit was brought in the form of a shareholder derivative action. This is a type of lawsuit that any shareholder can bring, but few do because of the costs. A shareholder derivative action is brought against officers and/or directors of a corporation (the "defendants") on behalf of the corporation itself, when the directors won't take action to enforce the company's rights. This type of lawsuit challenges decisions that officers and directors have made, where a shareholder claims that the decisions were not in the best interests of the corporation and have harmed the corporation (in most jurisdictions, a member of an LLC can also bring a derivative action). Derivative complaints commonly include claims that the people who manage the company have engaged in corporate waste, self-dealing, and breaches of their fiduciary duties.

The interesting thing about derivative actions is that a successful shareholder does not recover money directly. Any judgment in the case is entered in favor of the corporation. A shareholder may benefit indirectly, of course, by enriching the corporation at the expense of the officers or directors, but the more direct result of this type of lawsuit is that the shareholder is exerting influence on the company's management. A derivative suit is a big stick that investors such as hedge funds may be able to use to ensure that management toes the line and acts in the best interests of shareholders.

- Bob Barnard (Guest Contributor)

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Article Source: http://overhedged.com

Top 50 US Hedge Fund Groups

Top 50 US Hedge Fund Groups

top 50 US hedge fund groupsBelow is the list of the top 50 US Hedge Fund Groups organized by firm name, location, Jan. 07 AUM$B, Growth in 2006 and SEC Regulated Y/N
  1. Stark Investments* St. Francis WI 10.83 42.46% Y
  2. Davidson Kempner Advisers** New York NY 10.26 65.48% Y
  3. Highfields Capital Management Boston MA 10.00 29.87% N
  4. Wellington Management Co.** Boston MA 10.00 19.05% Y
  5. Canyon Capital Advisors Beverly Hills CA 9.60 18.52% Y
  6. AQR Capital Management Greenwich CT 9.50 21.79% Y
  7. Fortress Investment Group** New York NY 9.40 38.24% Y
  8. Maverick Capital New York NY 9.30 -15.45% Y
  9. Duquesne Capital Management** Pittsburgh PA 8.80 10.00% N
  10. Millennium Management** New York NY 8.60 32.31% N
  11. Adage Capital Management Boston MA 8.10 n/a N
  12. Cantillon Capital Management New York NY 8.10 6.58% Y
  13. York Capital Management New York NY 8.00 5.26% Y
  14. Lone Pine Capital Greenwich CT 7.94 5.84% N
  15. Black River Asset Management Minnetonka MN 7.90 75.56% Y
  16. King Street Capital Management New York NY 7.40 21.31% N
  17. Baupost Group Boston MA 7.36 26.90% Y
  18. Bain Capital/Brookside Capital Partners Boston MA 7.30 40.38% N
  19. BlackRock New York NY 7.30 92.11% Y
  20. Pequot Capital Management Westport CT 7.30 2.82% Y
  21. AllianceBernstein* New York NY 7.20 53.19% Y
  22. TPG-Axon Capital New York NY 7.20 26.32% N
  23. Paulson & Co. New York NY 7.14 62.36% Y
  24. Elliott Associates Greenwich CT 7.00 25.00% N
  25. Grantham, Mayo, Van Otterloo** Boston MA 7.00 52.17% Y
  26. JPMorgan Asset Management1 New York NY 34.00 74.36% Y
  27. Goldman Sachs Asset Management New York NY 32.53 47.87% Y
  28. Bridgewater Associates* Westport CT 30.20 47.32% Y
  29. D. E. Shaw Group New York NY 26.30 39.89% Y
  30. Farallon Capital Management* San Francisco CA 26.20 58.79% Y
  31. Renaissance Technologies Corp. East Setauket NY 24.00 175.86% Y
  32. Och-Ziff Capital Management New York NY 21.00 40.00% Y
  33. Cerberus Capital Management New York NY 19.15 69.60% N
  34. Barclays Global Investors* San Francisco CA 18.90 28.57% Y
  35. ESL Investments** Greenwich CT 18.00 20.00% N
  36. Citigroup Alternative Investments New York NY 15.77 162.85% Y
  37. Tudor Investment Corporation Greenwich CT 15.17 17.60% N
  38. Caxton Associates New York NY 14.20 10.08% Y
  39. Atticus Capital New York NY 14.00 60.92% N
  40. Campbell & Co. Towson MD 13.80 15.00% Y
  41. Citadel Investment Group Chicago IL 13.50 12.50% N
  42. Moore Capital Management New York NY 12.50 22.55% N
  43. Avenue Capital Group New York NY 12.40 37.78% Y
  44. Perry Capital New York NY 12.34 8.26% Y
  45. SAC Capital Advisors Stamford CT 12.00 41.18% N
  46. Soros Fund Management New York NY 12.00 25.00% N
  47. HBK Investments Dallas TX 11.90 35.23% Y
  48. FX Concepts New York NY 11.25 44.19% Y
  49. Angelo, Gordon & Co. New York NY 11.00 10.00% Y
  50. Fairfield Greenwich Group New York NY 11.00 50.68% Y
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Amaranth vs. JP Morgan Chase

Amaranth vs. JP Morgan Chase

The Amaranth complaint against JP Morgan Chase is a fascinating tale of corporate intrigue and sabotage. Of course, we have a long way to go before we see if the allegations hold up.

I am summarizing the complaint here. In order to do that, I have simplified things. There are actually two Amaranth entities listed as plaintiffs and three JPMC entities listed as defendants. I will just refer to Amaranth and JPMC here. If you want to sort out all of the players, feel free to read the 30-page complaint.

JPMC served as Amaranth's futures commission merchant ("FCM"). In that capacity, Amaranth alleges, JPMC had virtually unfettered knowledge of Amaranth's trading positions in the volatile natural gas derivatives market. As Amaranth began to lose money in its natural gas portfolio, Amaranth began to suspect that JPMC employees might have been leaking information about its positions to other traders in natural gas derivatives, allowing the other traders to use that information to benefit themselves and cause Amaranth to lose money.

Amaranth claims that, as it lost money on its natural gas positions, and its margin requirements began skyrocketing, it started looking to unload its natural gas portfolio to stem the losses and eliminate the risk of further massive losses. Amaranth alleges that it reached a deal to trade the bulk of its natural gas portfolio to Goldman Sachs, but that JMPC stifled the deal by refusing to complete the trade as Amaranth's FCM. Amaranth claims that JPMC was looking to muscle Goldman Sachs out of the deal because JPMC wanted to acquire the natural gas portfolio itself.

After Goldman Sachs bowed out, Amaranth claims that Citadel Investment Group agreed to essentially the same deal as Goldman Sachs. Amaranth contends that JPMC squashed that deal by speaking to Citadel and telling Citadel that Amaranth was not as solvent as Amaranth had represented.

When Citadel walked away from the deal, according to the complaint, JPMC stepped in and agreed to a trade with Amaranth to take on the bulk of Amaranth's natural gas portfolio. In the interim, Amaranth claims, it lost more than a billion dollars in that portfolio. In addition, Amaranth alleges that the trade with JPMC was on much more onerous terms than the deals it claims it had in place with Goldman Sachs and Citadel. The damages sought in this action could run into the billions.

This will most likely be a massive, high profile litigation, and it will have interesting implications both for hedge funds and their service providers as it shakes out. Is this a case of a desperate plaintiff looking for deep pockets? Or did JPMC really use the information it had access to in a way that damaged Amaranth? Stay tuned.

- Bob Barnard (Guest Contributor)

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Hedge Fund Consultant | Consulting Services

Hedge Fund Consultant

My name is Richard Wilson and I run the Hedge Fund Consulting Group. We offer speaking, training, and capital raising services to hedge funds and financial firms. To learn more about us please visit Hedge Fund Consulting Group.com or see a few of our services listed below:

  • Hedge Fund Training - I am part of a group which runs a certification program for the hedge fund industry. The designation is called the Certified Hedge Fund Professional (CHP) Designation Program. Learn more about it here: CHADesignation.Org
  • Prime Brokerage Services- Introductions to capital introduction groups and prime brokerage solutions for sub $300M hedge funds through Saratoga Prime Services.
  • Hedge Fund Marketing Hedge fund marketing materials, training, third party marketing due diligence, pre-marketing operational/risk analysis and third party marketing for well established hedge fund managers who would like to raise assets from single and multi-family offices. Learn more at HedgeFundConsultingGroup.com and FamilyOfficesDatabase.com.
  • Hedge Fund Advertising - My hedge fund websites attract over 270,000 pageviews each month. Please see the Hedge Fund Advertising page for more details.
  • Hedge Fund Research & Writing - I have a team of hedge fund researchers and writers who help me complete various hedge fund research and writing assignments on-demand.
To check on prices or discuss how we could work together please email me at Richard@HedgeFundGroup.org.

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Credit Default Swaps

Credit Default Swaps

Credit Default Swaps Article

Credit Default SwapThe evaporation of the collateralized loan obligation market may be the other shoe dropping. The risks posed by credit default swaps (CDSs) may be not just the other shoe, but the neutron bomb. The rating cut by S&P of ACA Financial Guaranty Corporation (from A to CCC), discussed in this article in today's NY Times, may portend deep trouble.

Credit default swaps originated as a form of credit protection that the holder of a credit risk could purchase as a hedge against a borrower's default. A holder of General Motors bonds, for example, can effectively insure against a default by GM by purchasing protection in the form of a CDS from a willing counterparty. Many holders of collateralized debt obligations that have recently plummeted in value had hedged their positions through CDSs, and ACA Financial has been a major seller of such protection. An accompanying article in the Times describes possible efforts by some of ACA's insureds, including Merrill Lynch, CIBC and Bear Stearns, to help bail out ACA in order to avoid a write-down of billions of dollars of insured securities.

As with so many other types of innovative financial products, CDSs have exploded in the past few years. They have become a simple way for investors to take long or short positions on particular companies or industries without having to buy or sell the actual underlying bank debt or securities. The notional amount of underlying obligations covered by CDSs now exceeds $40 trillion, up from less than $2 trillion in 2002.

In a low default environment, selling default risk through CDSs presented huge revenue opportunities. ACA more than doubled its CDS business over the past 12 months, and others have undoubtedly done likewise. However, if the events of the past several months have proven one thing, it is that investors have done a very poor job recently of accurately assessing and pricing risk. It is more likely than not that many CDS sellers have not properly gauged their exposure, or set aside sufficient reserves against it.

The potential ramifications are difficult to overstate. S&P contends that ACA is facing close to $3 billion of losses on its CDS exposures, for which it has only $650 million of reserved capital. There is no way to tell right now how many other banks, funds, and other insurers are similarly exposed. Of equal concern are the exposures of the CDS purchasers who believe themselves to be properly hedged against losses, but who may instead find their protection to be worthless because of their counterparty's inability to pay.

- Ben Feder (Guest Contributor)

Read dozens of additional articles like this within the guide to Hedge Fund Terms and Definitions.

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Hedge Fund Industry Review (Q3 07)

Hedge Fund Industry Review

The average hedge fund included in the HFRI Fund Weighted Composite index posted a moderate Q3 gain of 1.36%. This was largely due to a down month in August (-1.48%) followed by a recovery in September (2.82%) before quarter end. The first three quarters of 2007 have been a mixed bag for hedge fund performance in relation to the S&P 500. The S&P 500’s returns of 10.86 beat nearly half of all hedge fund indexes. One important point to keep in mind is that 10.86 is a above-average return for the S&P 500 and many hedge funds are designed so that they do not move with the markets or the S&P 500 in this case, so it is not necessarily a bad sign that each index did not beat the benchmark. High tides typically raise all boats in the sea Hedge funds are relied upon for unique return stream diversification, and it would be far more worrisome if hedge funds were consistently performing in line with the S&P 500 on a frequent basis.


  • Short selling strategies on a whole came out strong through the volatility this fall with average performance of 6.16%
  • Emerging Market funds gained 4.7% in Q3


  • Distressed Securities funds dropped an average 1.63%
  • Event Driven funds dropped an average .83%
  • Fixed Income High Yield funds dropped 4.14%

7 Q3 Hedge Fund Strategy Trends & Insights

1. Large Cap equities are starting to come into favor because of their multinational operations that diversify economic risk, their exports which take advantage of the dollar and their reputation as being a sot of safe harbor for earnings growth during chopping times in the market. Hedge funds running long-only or long/short portfolios will probably be overweighting this area and funds who expertise is really in GARP or moves made on technical indicators might come out on top for Q4 and Q1 of 2008.

2. In Q3 Emerging Market funds only attracted 3.64% of new capital. This was due to two factors. First China is becoming almost too popular for its own good with some questioning whether current mid and large cap PE ratios are too high. While I don’t think much money will leave the area some are worried of a sharp correction at some point over the next two or three quarters. Second, the US markets have seen volatility and unsteady footing through the end of Q2 and Q3 making investors look for solid ground to place investments with.

3. While almost unheard of three years ago Litigating Funding is becoming an increasing popular hedge fund strategy with returns that are driven by team expertise and returns which have a low correlation to the markets. We will probably see a few of funds focused just on this area start-up in early to mid 2008.

4. While Fixed Income High Yield strategies performed the worse during this last quarter it also had the highest % rise in new assets gaining $2.2B in new money in Q3 compared to $178m in Q2. I believe this is due to institutions being a long 18-24 month holding pattern on allocation to high yield investments and many now hoping to put capital to work picking up cheap instruments before they are re-valued again on the way back up. I wouldn’t be surprised to see Q4 showing an even greater inflow of high yield investments.

5. The $22.5 billion inflow of assets by Hedge Fund of Funds is the second highest ever, barely topped by a Q3 2006 inflow of $23.8B towards hedge fund strategies. I believe that this record will be beaten with close to $25B of net inflows in 2008 as RIA assets drive upwards and more institutions move from 6-8% to 12-20% allocations.

6. The asset flows to high yield contrast sharply with what happened with short selling asset flows in Q3. While short selling funds were on average the best performing of all groups they took in less than $1M in new flows, a rounding error by most accounts.

7. Two strategies which experienced net outflows during Q3 were Equity Market Neutral and Market Timing losing $278M and $39M. This could be due to these strategies typically quantitative modeling intensive investment processes which sometimes have difficult times navigating the types of volatile market conditions that we have recently seen.

Asset Inflows and Outflows – The Big Picture

A recent report from the Hedge Fund Research Group shows that hedge funds gained $45.2B in assets during the third quarter of 2007. Event-Driven, Relative Arbitrage, and Equity Hedge strategies received the lions share of those inflows taking in a respective $9.8B, $9.2B and $8.5B. Even though emerging markets hedge funds were once again a top performer they gained a modest $2.7B in Q3. Regardless of strategy roughly half of all new hedge fund assets came from Fund of Hedge Funds bringing the total fund of fund assets to a record $773 billion.

These inflows and outflows are important to keep an eye on. Since hedge funds cannot advertise a small handful of fraudulent or poor performing hedge funds in the news can often make millions of people think that the hedge fund industry is headed towards financial ruin. Looking at the overall picture in terms of performance and assets gains can give you a more realistic pulse on how the industry is really doing as a whole.

“Overall industry fund flows were positive despite performance volatility and specific instances of investor redemptions,” said Kenneth J. Heinz, president of Hedge Fund Research. “Flows were strongest into Fund of Hedge Funds and Event Driven Strategies, as well as many of the larger firms in the industry, each of which suggest continued capital concentration in the industry.”

A recent study by the Institute for Private Investors showed that the ultrawealthy are increasingly allocating more of their portfolios to hedge funds. Ultrawealthy investors are those who are typically define as having over $50M in investible assets, they are sometimes also referred to as ultra high net worth individuals (uhnw).

In this most recent study 25% of the ultrawealthy who responded to the study said they were looking to increase their allocation to hedge funds while 11% said they were planning on decreasing their exposure to this type of investment vehicle. An additional strong point that came out of the survey was that 63% of the respondents planned on increasing their investments outside of their own domestic markets.

The move to a larger allocation to emerging and developed markets internationally has been running parallel to hedge funds for several years now and some internationally focused hedge funds have faired quite in terms of performance returns and asset growth from new investors.

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Related Terms: Hedge Fund Industry Review, Hedge Fund Industry Report, Hedge Fund Industry Growth, Hedge Fund Assets, Hedge Fund of Fund Assets, Hedge Fund Assets Infow and Outflow, Hedge Fund of Fund Growth

Data Source: Hedge Fund Research Group

Goldman Sachs Hedge Fund Launch

Goldman Sachs Hedge Fund Launch

Goldman Sachs is launching a massive hedge fund that will have between $6 and $10 billion invested from day 1. The fund will begin operations on January 1st ran by Raanan Agus and Kenneth Eberts, a couple star traders that Goldman did not want to lose to an outside hedge fund.

While some of the initial seed capital will come from Goldman Sachs other parts will come from financial institutions on wall street, banks, trusts & family offices. If they could succeed at raising more than $7 billion it would beat the current seed capital raising record held by Makena Capital which is ran by Michael McCafferty.

- Richard

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Hedge Fund PR

Hedge Fund PR

Hedge Fund Public Relations (PR)

hedge fund prQuick Link: Hedge Fund Public Relations

I am currently looking for more guest article writers for my hedge fund blog. I am looking for concise advice, pr advice, knowledge sharing, statistics, analytics, or strategy definitions. If it helps a financial planner, investor, or consultant understand hedge funds better or identify a new trend then I am interested in publishing something on the topic.

If you would like some free hedge fund PR exposure for your firm or an internship doing research on the hedge fund industry please let me know by sending me an email.

If you are looking for a hedge fund public relations (PR) expert please also let me know. I know an experienced and well connected professional in the hedge fund industry.

Interested in hedge fund marketing? Read dozens of more hedge fund marketing & sales articles along with details on third party marketing within the Hedge Fund Marketing Guide.

- Richard

Permanent Link: Hedge Fund PR

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Drawdown Definition

A drawdown is the maxinimum percentage loss from a hedge fund. This is calculated by subtracting the lowest value from its peak net asset value.

drawdown, max drawdown, hedge fund max drawdown, drawdown calculationYou will often here to this a fund's max draw down over 5 years or max drawdown since inception. Some great low volatility funds will have max draw downs of only 3, 5, or 7% while others will have 10 or 20% drawdown figures. Sometimes this is due to the nature of their strategy, other times it can show that they have slipped at least once in moving the portfolio out of harms way or building in certain stop losses or hedged positions. All of this depends on the strategy at hand.

- Richard

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Top 10 Hedge Fund Quotes

Top 10 Hedge Fund Quotes

10. “If we don’t charge 2 and 20, no one will take us

9. “We are 75% cash because we cannot find
sufficient investments.”

8. “We charge 3 and 30 because that is the only way
we can keep our assets under several billion.”

7. “We don’t invest in crowded shorts.”

6. “I haven’t shorted before, but I do have my CFA.”

5. “Managed Futures are a better investment than Hedge
Funds because Hedge Funds are a zerosum

4. “What’s a Master Trust?”

3. “Your Head of Equity doesn’t understand our Hedge
Fund strategy.”

2. “Basically, I look at the trading screens all day and go
with my gut.”

1. “He will be with you in a minute sir, he’s still meeting
with his architect.”

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