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    Hedge Fund Strategies

    New Exotic Focus For Hedge Funds: Uranium Market
    WSJ
    In a new type of nuclear-arms race, hedge funds and other institutional investors in search of higher returns are competing with energy companies to amass scarce fuel-grade uranium, hoping to profit from revived interest in nuclear power.

    Hedge Funds Buy Life Insurance Policies to Ply New Profit Path
    Bloomberg
    Hedge funds are buying policies from elderly people at a discount, paying premiums to the life insurers, then collecting the full value after the policyholder dies.

    Carbon funds eye U.S. market, risks too
    Reuters
    Carbon trading under the Kyoto Protocol, worth $3 billion (1.54 billion pounds) last year, allows rich countries to buy permits called carbon credits to emit greenhouse gases from poor nations, and is attracting investors eyeing fat margins.

    Lose Your Home, Hedge Funds Win
    CNBC
    Hedge funds profit by speculating on asset backed indexes. When homeowners default on mortgages or are delinquent on payments, prices of mortgage backed securities fall, but a short position in the asset backed securities index gains value. Due to leverage, huge gains have been made using this strategy.

    Goldman fund takes bet on catastrophes
    eFinancialNews
    Goldman Sachs’ $10bn (€7.7bn) internal hedge fund has started trading in catastrophe risk, a growing market that is attracting new investors because of the high insurance premiums triggered by Hurricane Katrina. Hedge funds like reinsurance risk because it is almost uncorrelated to equity markets. Last year investors bought about $9bn of disaster-related instruments to bet on there being fewer catastrophes.

    A New Hedge Fund Strategy--Art
    The Stalwart
    Just when you thought that hedge funds had run out of ideas and arbitrage opportunities, managers are finding new areas to speculate in.

    Aircraft Leasing
    Ezinearticles
    Leasing has become a common technique to acquire an aircraft, since this asset has become expensive and always subject to a variety of laws and regulations.

    Startup firm allows homeowners to tap equity without payments
    Investmentnews
    The firm will give a consumer cash representing up to 15% of their home’s value in exchange for a cut of up to 52.5% of the capital appreciation when the property is sold.

    CME to launch hurricane futures
    The Associated Press
    The Chicago Mercantile Exchange, the largest derivatives exchange in the United States, announced Wednesday that it is launching contracts that will allow insurers and others to hedge risk against hurricane damage.

    As Investors Covet Ethanol, Farmers Resist
    The New York Times
    Farmers do not see fast money very often. But with big profits gushing forth from ethanol plants, dozens of Wall Street bankers, in loafers and suits, have been descending on the cornfields of the Midwest promising to make thousands of farmers rich overnight.

    Forecast for Weather Derivatives: This Hot Market Shows No Sign of Cooling Off
    fenews.com
    Barely a decade old, the weather derivatives market has grown by leaps and bounds, fueled by an increased awareness of global warming, cyclical climate changes, the devastation of harsh weather evidenced by 2005’s infamous Atlantic hurricane season.
    List of hedge funds betting on weather conditions

    Hedge fund firm Aramid eyes European films
    Reuters
    Hedge funds, which together run up to $1.7 trillion (860 billion pounds) of assets around the world, have been branching out into new areas like movie-making, moving beyond their traditional strongholds of trading securities and betting on economic trends.
    List of Hedge Funds Financing Films

    Currency Trading By Hedge Funds Booming
    LONDON -(Dow Jones)- Currency trading by hedge funds is set to push overall daily turnover in global foreign exchange as high as $4 trillion within the next two to three years, according to a report by research and consultancy firm Celent.
    List of Forex Hedge Funds

    Hedge bets on DVD distribution
    Variety's Festivals & Markets
    London-based hedge fund Marwyn Investment Management said it wants to set up a distribution company spanning Europe and North America, kicking off with a $160 million deal to acquire Toronto-based DVD distribber Entertainment One.

    Hedge Funds Seen Targeting Restaurants
    Associated Press
    Applebee's International Inc.'s announcement that it will consider a sale of the company highlights the growing influence hedge funds are having on the restaurant industry.

    Convertible arbitrage top hedge fund strategy in 2006
    Globe and Mail
    Convertible arbitrage -- the simultaneous purchase of a portfolio of convertible bonds, while selling short the corresponding equity shares -- was a strategy out of favour and cheaply priced early in 2006.

    Insight into biggest and riskiest of hedge-fund strategies
    The Financial Times Ltd
    Brevan Howard's attempt to raise up to €1.5bn (£1bn) for the first hedge fund to list on London's main market has given investors an unprecedented view of the inner workings of one of the biggest and riskiest strategies followed by hedge funds. The London-based Brevan Howard invests mainly in a "global macro" style, where managers take huge bets on the movements of interest rates and foreign exchange.

    CDO Surge Squeezes Deutsche Bank, Vanguard Bond Funds
    Bloomberg
    Credit derivatives, the fastest- growing business on Wall Street, are squeezing returns for bondholders to an all-time low. Contracts that protect investors against defaults are being sold in record numbers and then bundled into securities known as collateralized debt obligations. CDOs are driving down the cost to protect against non-payment so much that even the government of Argentina, which reneged on $95 billion of debt five years ago, is paying less than ever to borrow.

    Another hedge fund edges down the private equity route
    AltAssets
    The TriAlpha Oceana Concentrated Opportunities Fund will invest in both public and private global equities with individual investments accounting for as much as 25 per cent of the fund’s capital. A maximum of 50 per cent will be invested in private or illiquid investments and the fund is expected to have a seven-year life.

    Private funds eyed for WTC site
    CNN Money
    Report says government agency is talking to private equity firms, hedge funds to take stake in $3 billion 'Freedom Tower' that will replace twin towers.

    Wine and Hedge Funds
    wine-community
    Aside from the hedge fund millionaires investing in the land rich wine making lifestyle, a new trend is now being seen among hedge fund investors in the buying of premium wines.

    Real estate investors branch into hedge funds
    Christine Haughney
    Unable to expand their holdings by purchasing increasingly expensive office buildings, traditional buyers of Manhattan real estate are launching hedge funds to invest in publicly held real estate-related companies.
    List of Real Estate Hedge Funds

    Hedge Funds & Loan Markets
    SS&C Technologies
    At one time all the lending business was dominated by the big banks, which have always been highly regulated with special care taken in separating the different lines of businesses they participated in. On the other hand hedge funds, which typically do not encounter such strict regulatory management, are generally smaller than banks and thus have fewer information barriers in place.

    US Fund To Invest $35M In Brazil Biodiesel Project
    Dow Jones
    U.S. farmland investment group Global Ag Investments LLC is getting in on the biodiesel fever in Brazil by investing $35 million in a biodiesel plant targeting the European alternative fuels markets.

    Investment Strategies of Hedge Funds
    Filippo Stefanini
    One of the fastest growing investment sectors ever seen, hedge funds are considered by many to be exotic and inaccessible. This book provides an intensive learning experience, defining hedge funds, explaining hedge fund strategies while offering both qualitative and quantitative tools that investors need to access these types of funds. Topics not usually covered in discussions of hedge funds are included, such as a theoretical discussion of each hedge fund strategy followed by trading examples provided by successful hedge fund managers.

    The Little Book That Beats the Market
    Joel Greenblatt
    Contrary to efficient-market naysayers, this engaging investment primer contends that ordinary stock-market investors can indeed get better-than-market returns over the long haul. Greenblatt, a Columbia Business School adjunct professor, touts a "value-oriented" approach that looks for bargain stocks whose share price is cheap relative to the company's profitability. His version is a "magic formula" that ranks stocks on the basis of two variables—the earnings yield and the business's return on capital.

    Disclaimer : The contents of this site are for information purposes only and does not constitute investment advice or counsel or solicitation for investment in any security. We will not be liable for any direct, indirect, incidental or consequential loss or damage that may arise out of using the information in this site or relating to a linked third party website. Investments in hedge funds involve a high degree of risk and you could lose all your investment. You should carefully read a fund's offering materials, fund manager's track record and related information for specific risk and other important information regarding an investment in that fund before investing. Hedge funds are available solely to accredited investors and institutional investors and not to general public. The information in this website is based on data gathered from publicly available websites and other information mediums therefore do not guarantee its accuracy, nor completeness. We do not represent any hedge funds or investment/financial advisors nor give any investment recommendations.

     

     
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