Monday, 20 October 2014
Last updated 2 hours ago
Nov 29 2007 | 8:29am ET
Subprime short sellers and credit-focused hedge funds are not the only ones in the black this year: the Babylon Fund gained a further 2.7% last month pushing its year-to-date returns to 20.1%.
In October, the $13.8 million hedge fund, structured as an open-ended mutual fund that invests in large-cap Iraqi-dependant securities, placed the bulk of its bets on equities (71%) followed by bonds and deposits at 16% and 13%, respectively, according to its latest performance report. But despite its low correlation to Western markets, portfolio manager Björn Englund noted a peculiar phenomenon on the Iraq Stock Exchange last month.
“For example, in October, more than 60% of the equity trades made on the ISX were directed from abroad - as a couple of large-sized deals in banking stocks raised the overall volumes, contracts and values traded,” wrote Englund in his latest investor letter.
“Adding up to the present cautious ‘wait-and-see’-stance on the market floor have been factors such as lack of momentum, few company updates, and the flight of monies to the closest alternative asset class in NID: Govie T-bills yielding 18-22% in (hard) dinar [currency].”
Englund added that he believes this to be a short-term phenomenon and remains optimistic for the future of the Iraqi market and the ISX in terms of a push for more “longer opening hours, less daily hassle, a relatively more international mind-set and understanding among managers, healthier balance sheets, and even growing business confidence (the feel-good factor) - within most sectors and industries.”
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 ...