Hedge Funds – Smart money

[Bubblesitter]

Interesting piece in FT, excert from a letter to his investors.

Kyle Bass is a hedge fund manager of the Hayman Capital Subprime Credit Strategies Hedge Fund. They made a big bet against Subprime and seem to be winning.

http://ftalphaville.ft.com/blog/2007/08/21/6727/the-full-subprime-letter-from-haymans-kyle-bass/

Note the comments about the in-land empire, Moral Hazard and now widespread lack of confidence in rating agencies.

I don’t believe this credit crunch is going away anytime soon. The ratings agencies Fitch, S&P, Moody’s were all complicit in this misrating of risk while collecting huge fees, no wonder investors are gun-shy. I AM. You are already hearing about congressional hearings on this one.

http://money.cnn.com/2007/08/20/magazines/fortune/ratings_agencies.fortune/index.htm?postversion=2007082106

[Bubblesitter]

By the way, FT or Financial Times is the premier European Financial newspaper, probably on par with the Wall Steet Journal. You may have seen its trademark pink paper with wide format in the newsstands. It has wide distribution worldwide.

I was traveling in Asia last week. This whole crisis is getting lots of press out there. We are in for a rough ride because many of those overseas investors have lost confidence in US markets.

[Bubblesitter]

By the way, FT or Financial Times is the premier European Financial newspaper, probably on par with the Wall Steet Journal. You may have seen its trademark pink paper with wide format in the newsstands. It has wide distribution worldwide.

I was traveling in Asia last week. This whole crisis is getting lots of press out there. We are in for a rough ride because many of those overseas investors have lost confidence in US markets.

[Bubblesitter]

By the way, FT or Financial Times is the premier European Financial newspaper, probably on par with the Wall Steet Journal. You may have seen its trademark pink paper with wide format in the newsstands. It has wide distribution worldwide.

I was traveling in Asia last week. This whole crisis is getting lots of press out there. We are in for a rough ride because many of those overseas investors have lost confidence in US markets.

[betting on fall]

This is what makes me laugh when everyone says “the hedgies are going to get killed” There is a winner and loser in every trade, and these days there are probably more hedge funds winning bets against housing than there are hedge funds that are losing in housing. Yes, some will go down in flames, but plenty are getting richer than ever.

If anything kills the big hedge fund industry we have today, it would be if banks stopped lending them tons of money to make their bets. If hedge funds can’t leverage their bets 5x or 10x, their returns may start looking much more average, and their huge management fees would not be worth it.

[betting on fall]

This is what makes me laugh when everyone says “the hedgies are going to get killed” There is a winner and loser in every trade, and these days there are probably more hedge funds winning bets against housing than there are hedge funds that are losing in housing. Yes, some will go down in flames, but plenty are getting richer than ever.

If anything kills the big hedge fund industry we have today, it would be if banks stopped lending them tons of money to make their bets. If hedge funds can’t leverage their bets 5x or 10x, their returns may start looking much more average, and their huge management fees would not be worth it.

[betting on fall]

This is what makes me laugh when everyone says “the hedgies are going to get killed” There is a winner and loser in every trade, and these days there are probably more hedge funds winning bets against housing than there are hedge funds that are losing in housing. Yes, some will go down in flames, but plenty are getting richer than ever.

If anything kills the big hedge fund industry we have today, it would be if banks stopped lending them tons of money to make their bets. If hedge funds can’t leverage their bets 5x or 10x, their returns may start looking much more average, and their huge management fees would not be worth it.

[Bubblesitter]

Gonna see alot of Hedge funds go under in 2009

The Madoff scandal will only further accelerate the loss in confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=agmxqxRJfrCI&refer=worldwide

Bubblesitter

[Bubblesitter]

Gonna see alot of Hedge funds go under in 2009

The Madoff scandal will only further accelerate the loss in confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=agmxqxRJfrCI&refer=worldwide

Bubblesitter

[Bubblesitter]

Gonna see alot of Hedge funds go under in 2009

The Madoff scandal will only further accelerate the loss in confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=agmxqxRJfrCI&refer=worldwide

Bubblesitter

[Bubblesitter]

Gonna see alot of Hedge funds go under in 2009

The Madoff scandal will only further accelerate the loss in confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=agmxqxRJfrCI&refer=worldwide

Bubblesitter

[Bubblesitter]

Gonna see alot of Hedge funds go under in 2009

The Madoff scandal will only further accelerate the loss in confidence

http://www.bloomberg.com/apps/news?pid=20601087&sid=agmxqxRJfrCI&refer=worldwide

Bubblesitter

[peterb]

Eclectica’s doing pretty well as is that Greek guy in NY that shorts about everything. They’re not all idiots. But a lot are….

[peterb]

Eclectica’s doing pretty well as is that Greek guy in NY that shorts about everything. They’re not all idiots. But a lot are….

[peterb]

Eclectica’s doing pretty well as is that Greek guy in NY that shorts about everything. They’re not all idiots. But a lot are….

[Author]

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