Activist investing has been among the best performing hedge fund strategies this year. These investors buy a company’s stock and may agitate its management for a change. They may sell the stock short, expecting its share price to fall before they can replace management or board members to facilitate any change.
Many investors feel this is counterintuitive to being an equity holder in a company. Some are plainly critical of the practice.
The largest Wall Street investment banks reported good earnings this week, many beating analysts’ expectations, but the devil remains in the details.
Banks are in the middle of implementing global regulations designed to create a safer framework under which they operate and avoid an encore of 2008. Still, these financial institutions are not as forthcoming as they should be in disclosing key elements that would help measure their resilience, Mayra Rodríguez Valladares, managing principal of MRV Associates and a bank regulation expert told the Reuters Global Markets Forum during a LiveChat this week.
Twitchy investors who fear the S&P 500 stock index will correct its meteoric rise after posting historic highs on Tuesday have yet to show up in the widely-watched index that measures investors’ confidence in markets.
The Chicago Board Options Exchange (CBOE) volatility index or the VIX, known as the “fear gauge” that measures the short-term volatility of S&P 500 stock index options, has steadied around 10 percent at multi-year lows.
Fund managers picked stocks and gave tips on how to tactically invest around central bank policies; a former government regulator proposed his outlook on potential next steps to rein in high frequency trading and others talked winning trades and how to sell a hedge fund in this climate at the HedgeWorld Midwest Conference in Chicago this week.
Investors should remain nimble and invest “tactically” in preparation for when central banks eventually pull the plug on stimulus programs and interest rates rise, said Sharon Snow, chief executive of Metropolitan Capital Strategies which oversees $100 million in investments for families. “We are waiting for the Treasury trade to materialize – short Treasuries when yields go up,” she said during a panel discussion.
Bitcoin – an illusion, a fad, a passing hobby. Not so much. This week, travel web site Expedia.com said it would begin accepting the virtual currency as payment for hotel accommodations and the owner of a Canadian gold mine offered its sale for $2 million in Bitcoin.
Replacing or even comparing gold with a so-called crypto-currency is still something of a reach, but more and more investors are turning their attention toward how Bitcoin can be used for monetary transactions and how they can profit from it.
NEW YORK (Reuters) – Billionaire philanthropist and former heavyweight natural gas trader John Arnold became aware of the ailing U.S. public pension system years ago, before unprecedented municipal bankruptcies highlighted the gravity of the situation.
Houston-based Arnold, 40, retired from hedge fund management in 2012 after trading in energy for more than a decade at Enron Corp and then at his own fund, Centaurus Energy.
NEW YORK, June 3 (Reuters) – Billionaire philanthropist and
former heavyweight natural gas trader John Arnold became aware
of the ailing U.S. public pension system years ago, before
unprecedented municipal bankruptcies highlighted the gravity of
Houston-based Arnold, 40, retired from hedge fund management
in 2012 after trading in energy for more than a decade at Enron
Corp and then at his own fund, Centaurus Energy.
Former U.S. Treasury Secretary Timothy Geithner has taken to the media circuit in the last two weeks to promote his new book “Stress Test: Reflections on Financial Crises” and defend his time in office as the United States faced the world’s greatest post- World War II financial crisis.
Daniel Indiviglio, our own Reuters Breakingviews columnist and Josh Rosner, managing director with Graham Fisher & Co, took Geithner’s book to task during a discussion in the Global Markets Forum on Thursday.
Billionaire hedge fund managers are still feeling a polar vortex-like chill even as spring emerges. One by one, they lamented the lack of “macro” ideas that investors can pin their returns on this week at the annual Sohn Investment Conference in New York.
Volatility is at “generational lows,” Michael Novogratz, the principal of Fortress Investment Group told the audience. This year and next year will feel a lot like last year, Larry Robbins of Glenview Capital told investors, as central banks maintain low interest rate policies.
(Note to readers: This blog was orginally posted on May 1, 2014 and was updated on May 15th with news of a Bitcoin-focused hedge fund at the bottom).