The World’s Most Brilliant Hedge Fund Manager Put Together A Guide To How The Economy Really Works (BusinessInsider)
Ray Dalio manages the world’s largest hedge fund, Bridgewater Associates. It has a tremendous track record, so when the man talks about markets, people usually listen. Beyond that, Dalio is known for having one of the most cogent and refined understandings of the economy in the financial industry. Lots of investors pontificate, but Dalio’s views are legitimately well respected. As part of his mission to explain how the economy works, Dalio has put together a neat, new 30-minute animated video called “How the Economic Machine Works,” where Dalio narrates his big picture view of the economy.
Hedge fund manager: Fed robbing poor to pay rich (USAToday)
The Federal Reserve isn’t just inflating markets but is shifting a massive amount of wealth from the middle class and poor to the rich, according to billionaire hedge fund manager Stanley Druckenmiller. In an interview on “Squawk Box,” the founder of Duquesne Capital said the Fed’s policy of quantitative easing was inflating stocks and other assets held by wealthy investors like himself. But the price of making the rich richer will be paid by future generations. “This is fantastic for every rich person,” he said a day after the Fed’s stunning decision to delay tightening its monetary policy. “This is the biggest redistribution of wealth from the middle class and the poor to the rich ever.”
Open-Government Laws Fuel Hedge-Fund Profits (WSJ)
When SAC Capital Advisors LP was weighing an investment in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) -0.18% the hedge-fund firm contacted a source it knew would provide nonpublic information without blinking: the federal government. An investment manager for an SAC affiliate asked the Food and Drug Administration last December for any “adverse event reports” for Vertex’s recently approved cystic-fibrosis drug. Under the Freedom of Information Act, the agency had to hand over the material, which revealed no major problems. The bill: $72.50, cheaper than the price of two Vertex shares.
Advanced Planning Considerations For Hedge Fund General Partners (Forbes)
For hedge funds there are a number of factors that translate into long-term success. Topping the list is high-quality investment performance. Hedge funds are all about alpha. However, for business success and to produce a stellar track record, hedge funds need to raise capital and they must attract and retain exceptionally talented professionals. The management company is the operating entity that hires the fund’s professional and administrative staff. It pays their salaries and provides various benefits programs. According to Evan Jehle, a partner in the family office group at Rothstein Kass,..
Hedge funds now free to advertise (NYPost)
Advertising agencies may want to start calling their local billionaire hedge fund bosses — starting now! The decades-long ban on hedge fund advertising has been lifted effective Monday — thanks to the 2012 Jumpstart Our Business Startups Act, which also allowed Twitter to register confidentially this month for a public stock offering. While the new rules won’t likely lead to traders’ faces plastered on New York City buses or on grocery store shopping carts, it could result in more hedge fund “branding” in sports arenas or other public places deep-pockets people like to congregate, experts forecast.
Huge hedge fund wheat bets ‘limit price downside’ (AgriMoney)
The extent of hedge funds’ negative positioning on wheat has got so large that it may limit their appetite for more, brokers warned, even as prices outperformed those of fellow grains. Managed money, a proxy for speculators, reduced its net long position in futures and options in the main 13 US-traded agricultural commodities by nearly 29,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.
How Hain’s social strategy has grown profits (CNBC)
Buffett: US Fed greatest hedge fund in history (NineMSN)
According to Bloomberg, Buffett told students at Washington’s Georgetown University that the central bank was probably generating US$80 to $90 billion a year in revenue for the US government, and that wasn’t the case a few years back. The US Fed is buying US$85 billion worth of bonds each month, which has seen its balance sheet expand to more than US$3 trillion, with payments to the US Treasury Department growing accordingly. Last year the central bank remitted US$88.4 billion.
Hedge funds enjoy post-crisis popularity with ‘safe’ image (BRecorder)
Hedge funds may be making their clients less money than mainstream financial markets, but with their portfolios increasingly seen as a safer, low-volatility option in a tough investment landscape they have more cash to manage than ever. The industry’s coffers hit a record $2.4 trillion globally in 2013, swollen by money from US and European pension funds seeking help to find returns in the face of low interest rates and unpredictable markets post-financial crisis.
Third time lucky? Multi-billionaire George Soros gets married again, to bride half his age (Independent)
George Soros, the 83-year-old billionaire investor, got married for the third time on Saturday. In a modest New York ceremony, he wed 42-year-old education consultant Tamiko Bolton. His five children were among guests, and the service – presided over by federal judge Kimba Wood – was followed by a reception for more than 500 at the Caramoor Centre for Music and the Arts. Other guests included IMF chief Christine Lagarde, World Bank president Jim Yong Kim, Kofi Annan and New York governor Andrew Cuomo. Bono also attended.
JIM ROGERS: ‘The Wolf Is Now At The Door In India’ (BusinessInsider)
Jim Rogers thinks there is a crisis coming in some emerging economies. In India, where GDP growth is at a 10-year low, Rogers thinks the “wolf is now at the door in India.” On the other hand, he thinks investors need to be prepared to take advantage of the problems in China. Some of these areas include agriculture, pollution, tourism, and China’s railroad system. When Chinese tourism expands “they’re going to change the name of Madison Avenue to China Avenue.,” he said.
Roubini urges Ukraine, EU tie-up (BDLive)
Ukraine should work with the European Union (EU) rather than a Russian-led customs union in order to boost its economy, says Nouriel Roubini, a professor of economics and international business at New York University. Ukraine’s “macroeconomic condition is fragile” because of widening current-account and fiscal deficits and growing needs for external financing, Prof Roubini said on Saturday at the annual Yalta European Strategy Conference on Ukraine’s Black Sea coast. Ukraine plans to sign the EU Association Agreement, which includes a free-trade accord with the 28-member bloc, in November. Russia wants Ukraine to join the customs union it formed with Kazakhstan and Belarus instead.
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