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May 7, 2010

Sell-off ravages ETFs

BOSTON (Reuters) – More than two-thirds of the securities that suffered astonishingly rapid and severe price declines on Thursday were exchange-traded funds, raising questions for investors who rely on ETFs for hedging and risk reduction strategies.

The New York Stock Exchange on Friday released a list of 173 securities, including 111 ETFs, that were affected by the sell-off and would have many trades between 2:40 p.m. and 3 p.m. EDT (1840 GMT and 1900 GMT) canceled, according to a calculation by the website IndexUniverse. The Nasdaq released its own list of 281 securities including 193 ETFs.

May 7, 2010

ETFs were most of securities affected by sell-off

BOSTON, May 7 (Reuters) – More than two-thirds of the
securities that suffered astonishingly rapid and severe price
declines on Thursday were exchange-traded funds, raising
questions for investors who rely on ETFs for hedging and risk
reduction strategies.

The New York Stock Exchange on Friday released a list of
173 securities, including 111 ETFs, that were affected by the
sell-off and would have many trades between 2:40 p.m. and 3:00
p.m. (1840 and 1900 GMT) canceled, according to a calculation
by the website IndexUniverse. The Nasdaq released its own list
of 281 securities including 193 ETFs.

May 3, 2010

Red Sox owner, trader Henry sticks to plan

BOSTON (Reuters) – Futures trader John Henry, who parlayed a knack for blackjack into an investing system to make billions of dollars, says he is sticking with his trend-following strategy even though it has not worked well lately.

“Everything in life has trends,” Henry, who is also principal owner of the Boston Red Sox baseball team, said on Monday during a talk at the MIT Sloan School of Management. “People’s expectations trend and you can take advantage of that.”

May 3, 2010

Red Sox owner, futures trader Henry sticks to plan

BOSTON, May 3 (Reuters) – Futures trader John Henry, who
parlayed a knack for Black Jack into an investing system to
make billions of dollars, says he is sticking with his
trend-following strategy even though it has not worked well
lately.

“Everything in life has trends,” Henry, who is also
principal owner of the Boston Red Sox baseball team, said on
Monday during a talk at the MIT Sloan School of Management.
“People’s expectations trend and you can take advantage of
that.”

Apr 30, 2010

Goldman’s troubles may hurt money management unit

BOSTON (Reuters) – Federal civil fraud allegations against Goldman Sachs Group Inc. over a 2007 mortgage derivatives deal have drawn concern from some clients at the firm’s already-challenged money management unit.

The Oklahoma Teachers Retirement System voted on Thursday to put Goldman Sachs Asset Management “on alert” as it reviews the fraud allegations, an official at the fund told Reuters. Goldman manages more than $500 million of U.S. growth stocks for the retirement fund.

Apr 30, 2010

Palm deal shows HP’s Hurd still pinching pennies

BOSTON (Reuters) – Hewlett-Packard Co <HPQ.N> Chief Executive Mark Hurd came to the company in 2005 with a reputation for cost-cutting and ruthless efficiency.

And as seen in Thursday’s bargain-bin deal to purchase ailing smartphone maker Palm Inc. <PALM.O> for $1.2 billion, Hurd’s penny pinching tendencies dominate even in the high-stakes realm of mergers and acquisitions.

Apr 23, 2010

Heard the one about Goldman Sachs and the volcano?

AMSTERDAM/BOSTON (Reuters) – Did you hear that Goldman Sachs made the Iceland volcano erupt? It did pretty well shorting airlines.

It’s a joke, of course — Goldman isn’t quite that powerful — and there are plenty of others like it as comedians, traders and the man on the street take potshots at Wall Street’s biggest investment bank.

Apr 16, 2010

Goldman CDO case could be tip of iceberg

BOSTON/NEW YORK (Reuters) – The case against Goldman Sachs Group Inc over a 2007 mortgage derivatives deal it set up for a hedge fund manager could be just the start of Wall Street’s legal troubles stemming from the subprime meltdown.

The U.S. Securities and Exchange Commission charged Goldman with fraud for failing to disclose to buyers of a collateralized debt obligation known as ABACUS that hedge fund manager John Paulson helped select mortgage derivatives he was betting against for the deal. Goldman denied any wrongdoing.

Apr 7, 2010

Hedge fund manager looks to higher authority on insider trading

With all the insider-trading scandals swirling around the hedge fund industry, it’s no surprise to see portfolio managers meeting with lawyers, accountants and regulators. But some investors caught up in the investigations are also seeking advice from a higher authority.

On Tuesday evening, while waiting for a large pizza with peppers, onions and artichokes at an upscale joint in suburban Needham, Mass., I happened to overhear a Boston hedge fund manager and a female companion conferring with a priest. Tucked into a corner booth at Not Your Average Joe’s restaurant, the manager spoke loudly and passionately about his predicament.

Apr 5, 2010

London firm expected to roll out more U.S. ETFs

BOSTON, April 5 (Reuters) – Exchange-traded fund manager
ETF Securities, which oversees about $17 billion in assets
worldwide, is expected to extend its U.S. offerings beyond four
precious metals funds into a wide variety of other commodities
later this year, analysts and investors said.

The London-based firm has garnered almost $1.3 billion from
U.S. investors in its months-old metal-based funds so far.

    • About Aaron

      "Boston-based reporter covering investment management and investing. Previously worked at Businessweek in Boston and at The Industry Standard and Reuters in Washington, D.C."
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