NPR Broadcast on Short Selling
Mar17

NPR Broadcast on Short Selling

I posted an article on the morality of short selling several months back. I recently listened to a podcast on the topic on NPR’s “Planet Money.” It starts out with an Herbalife conference call.  Herbalife is a company that sells weight loss shakes, vitamins, etc. The company is doing well and reporting good numbers during the call. Next, David Einhorn, a renowned short seller gets on the conference call with Herbalife. He asks how...

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Causes of Inflation
Mar16

Causes of Inflation

We’ve heard stories of how back in the day you could have the world for a hundred dollars and get back change. So what happens to those times. Why do prices continue to rise? Why is it that we can no longer go out with 50 cents in our pockets and buy a pair of slacks, or knickers? Why do penny loafers seem so silly now? Have they always been silly? Actually, to answer my own penny loafer question, I mean as the net answers that....

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Correlated to
Jan27

Correlated to

Diversification is one of the most commonly techniques used to minimize investment risk.  One of the best ways to think about diversification is the same way you would think about an oil tanker.   George Soros says it best: GEORGE SOROS: Markets are inherently unstable, or at least potentially unstable. An appropriate metaphor is the oil tankers. They are very big; and therefore, you have to put in compartments to prevent the sloshing...

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Management of Financial Risk |  Sharpe Ratio; Calmar Ratio: Pain to Gain Ratio
Jan21

Management of Financial Risk | Sharpe Ratio; Calmar Ratio: Pain to Gain Ratio

There are many risk metrics one can use to evaluate, the performance of a fund manager. The risk metric that has become the standard for judging fund manager risk performance is the Sharpe Ratio.  The Sharpe Ratio – A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe Ratio tells us whether a portfolio’s returns are due to astute investment decisions or a result of...

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Rules of the Trade | Rules for trading

Rules of the Trade | Rules for trading So I wanted to post something that I think that would help people immensely.  They are some rules from Ed Sekyota who is profiled in Jack Schwager’s excellent book Market Wizards. The song is named “The WhipSaw Song”.  In the song Ed Sekyota and his band list all the essentials for being a profitable trader.  It really is that simple! 1.     Ride your Winners 2.     Cut Your Losses 3....

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Hedge Funds Alpha
Oct24

Hedge Funds Alpha

  So the World Money show in Toronto is finished!  It was well organized and I met a lot of nice individuals.  I was able to take in four speeches at the World Money Show. Since I am a systematic trader I didn’t want to spend too much time in the speeches that talked about systematic trading even though I did take in one speech about “Backtesting and its Pitfalls” which was well done.  I heard a particular phrase being...

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World of Hedge Funds
Sep25

World of Hedge Funds

Pertrac has published an info graph on Hedge Funds that I find extremely useful.  After looking at the info graph I’m actually surprised by some of the items on the infographic. 1) Under the section named “Where is wealth concentrated?”  There are no countries from Asian with in the top ten. 2) There are only 637 Hedge Funds in all of Asia! 3) I had no idea the Hedge Fund space was so large in Brazil! 4) Small Hedge...

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Canada to create new entrepreneur visa
Sep18

Canada to create new entrepreneur visa

The Canadian government has plans to create a new visa class in hopes of attracting entrepreneurs to start new companies, which will in turn boost the Canadian economy. Canada  is putting a hold on its existing entrepreneur visa which only requires immigrants to hire one employee for one year.  They intend to start the new plan, which focuses on issuing visas to individuals identified by  venture capital funds as candidates to build...

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Skewness and Kurtosis of Hedge Funds
Sep17

Skewness and Kurtosis of Hedge Funds

  Skewness and Kurtosis of Hedge Funds| In a number of previous post I wrote that learning how to program has loads of benefits.  I have started to do a lot of backtesting and research in matlab lately.  I haven’t left excel and it will probably take me a long time to go from excel to matlab.  I have noticed that Matlab is blazing fast; I mean as fast as the marvel comic book character “Flash”! Who doesn’t love...

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Moody’s may lower US rating
Sep17

Moody’s may lower US rating

Last Tuesday,  Moody’s (bond credit rating service) warned that it could lower the United States’ rating from triple-A to Aa1 if congress fails to reduce its debt. This warning comes a year after the US saw their triple-A status taken away by Standard & Poor’s. In June S&P confirmed their decision, saying the  conditions have deteriorated if anything. In a recent statement the firm stated “Budget...

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