Tuesday, 21 October 2014
Last updated 20 min ago
Aug 1 2011 | 1:48pm ET
A Chicago-based real-estate lender says it has come up with a no-lose hedge fund strategy.
Clopton Capital is readying a hedge fund that will invest in what it calls the "fractured" commercial real-estate market. The new fund will lend to real estate deals with opportunities for big returns. Even if those deals result in default, however, the Clopton fund will both recover its initial investment and seize the property, Clopton said in a press release.
"The fund will be based solely on the investment criteria that any capital deployed will be secured two-to-one against income-producing commercial real-estate on a capitalization rate appropriate for the surrounding area," the firm said.
"For example, Clopton recently deployed capital for a rehabilitation loan located in the Chicago area," it said. "Despite contractor disputes and concerns, the loan was underwritten to then surrounding cap rate and the property, once stabilized in less than 90 days, was valued at a 50% value to contributed capital by Clopton exactly."
"This opportunity represented a 13% return for a 120-day investment of capital. Annually this represents a 39% return on capital, a previously unattainable number considering the low risk involved. The benefit of investing into Clopton alternative investments is that you receive a high return on capital and in the event of a default; you receive an even higher return."
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…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...