Tuesday, 30 September 2014
Last updated 18 min ago
May 3 2007 | 2:00pm ET
Hedge funds may be on the brink of collapse, according to the Federal Reserve Bank of New York. Or, they might not be.
“Recent high correlations among hedge fund returns could suggest concentrations of risk comparable to those preceding the hedge fund crisis of 1998,” the year Long-Term Capital Management blew up, writes capital markets economist Tobias Adrian in a report issued Wednesday. But he quickly noted that the metrics pointing in that direction could be misleading.
Adrian noted that low volatility is making things look more precarious than they are. “The unusually high correlation among hedge funds in the current environment is therefore attributable primarily to low hedge fund volatility,” he writes, adding that an LTCM-style meltdown is unlikely.
The New York Fed is unlikely to take the prospect of another LTCM lightly: It led the $3.6 billion bail-out of the notorious hedge fund in 1998.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...