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Dear HedgeRoll readers, We will be celebrating the holidays until January 2011. Until then, enjoy the video below. All the Best, Emory WSJ.com: Hedge fund titan Paul Tudor Jones III spreads a little Christmas cheer around Greenwich, Conn., each year. Well maybe more than just a little.
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One of my least favorite trends is referring to items which have traditionally been consumption items as "investments". When I was shopping for an engagement ring for my (now) wife, the sales clerks frequently referred to diamonds as an investment. Needless to say, we had a difference of opinion.
I recently came across a May 2010 interview with Seth Klarman of the Baupost Group, value investor extraordinaire. He nicely summarized my thoughts on the matter: “Buying anything that is a collectible, has no cash flow, and is based only on a future sale to a greater fool, if you will—even if that purchaser is not a fool—is speculating. The “investment” might work—owing to a limited supply of Monets, for example—but a commodity doesn’t have the same characteristics as a security, characteristics that allow for analysis. Other than a recent sale or appreciation due to inflation, analyzing the current or future worth of a commodity is nearly impossible. The line I draw in the sand is that if an asset has cash flow or the likelihood of cash flow in the near term and is not purely dependent on what a future buyer might pay, then it’s an investment. If an asset’s value is totally dependent on the amount a future buyer might pay, then its purchase is speculation. The hardest commodity-like asset to categorize is land, an asset that is valuable to a future buyer because it will deliver cash flow, not because it will be sold to a future speculator.” A recent study, posted here, suggests that analysis of Twitter activity can be used to predict the daily close of the markets. A fund has been established to trade off the signals.
About Dr. Burghardt: Galen is considered an expert on futures, and is currently an adjunct professor at the University of Chicago's School of Business. He is the lead author of 4 books on futures markets, and is currently Director of Research at Newedge, a multi asset brokerage firm. I'd like to thank the team over at Opalesque.TV for all the great interviews with leaders in the hedge fund industry.
Bloomberg: Electricity across four Nordic countries for the next quarter jumped on Dec. 13 to its highest level since 2006, after advancing 27 percent last month. The surge gave Nordic Power Trading F.M.B.A. a 29 percent return in November, while Norwatt Energy AS’s fund rose 6.6 percent, topping a Bloomberg survey this week of nine funds that together manage at least $268 million.
Institutional Investor: Centaurus Energy’s John Arnold is poised to suffer by far his worst year since launching his roughly $5 billion hedge fund eight years ago. The super secretive former Enron energy trader is actually losing money this year; he was down 2.7 percent through October despite a 7.9 percent gain that month, according to knowledgeable sources. There are allegations that Goldman Sachs helped push Bear Stearns into bankruptcy by marking down its mortgage holdings. Goldman defended itself on these charges in a recent letter.
As a former municipal bond analyst, I agree that expiration of the BAB's program would be quite unusual.
This blogger thinks it is the next black swan. Too bad you can't short muni's. Full disclosure: I am long MUB. David Einhorn sat with Charlie Rose on December 6th. He spoke extensively on the global economy, Apple, and why he loves investing. Watch the interview here.
From Wikipedia: As of June 30, 2010, Fortress Investment Group had four core businesses totaling approximately $41.7 billion of assets under management: Private Equity, Credit, Liquid Markets and Traditional Asset Management. Fortress Investment Group LLC was founded as a private equity firm in 1998 by Wesley R. Edens, a former partner at BlackRock Financial Management, Inc.; Robert Kauffman, a managing director of UBS; and Randal A. Nardone, also a managing director of UBS. Fortress quickly expanded into hedge funds, real estate-related investments and debt securities, run by Michael Novogratz and Pete Briger, both former partners at Goldman Sachs. I'd like to thank the team over at Opalesque.TV for all the great interviews with leaders in the hedge fund industry. |
This is the personal blog of Emory Redd.
This blog is not investment advice. This is not a solicitation to invest. Don't take candy from strangers. 
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