Skip to main content

Hedge funds becoming mainstream

The FT Companies & Markets section carried two articles today on the trend towards mainstream acceptance of hedge funds and private equity. I will attempt to reproduce them here.

In, "Fortress to pave way with IPO", the FT reports that the Fortress Investment Group IPO will be the "first public listing of its kind in the US and will provide a critical test of investor appetite for publicly traded hedge funds".

Regardless of whether investors pile into the issue or leave it alone, it seems that hedge funds and private investment groups have left a profound influence on the investment world. The groups have influenced the mainstream investment community with their strategies and philosophies.

From, "Hedges begin to blur at the edges":

THE distinction between hedge funds and the mainstream asset management business has become increasingly "arbitrary" as the two industries converge, according to the head of Barclays Global Investors, the world's biggest money manager.

BGI chief executive Blake Grossman told the Financial Times this week: "The notion that there is a traditional way of investing that is long only, and then there is hedge funds, is crazy. We're seeing real convergence. We're getting mandates to employ some degree of short selling, some degree of derivatives ... If you look out five years, there will be much less of a divide between what's considered a hedge fund and what's considered a traditional strategy."

You may have witnessed some of these changes firsthand. Read on in the articles above for more.

Popular posts from this blog

How to "Pull the Trigger" on Your Trading Ideas

In our last post, I quoted hedge fund manager, Jim Leitner on the importance of following up on your investment ideas.  Today I'd like to follow up and share some thoughts on how you can learn to consistently "pull the trigger" on your best trading setups and investing ideas. In order to help you do that, we'll take from the best and offer up key insights from interviews with top traders and trading psychologists like Alan Farley, Brett Steenbarger, and Doug Hirschhorn .  Now before we get to their key insights on overcoming trading anxiety and pulling the trigger on your trading ideas, let's remember what Jim Leitner said in his interview: "Learn to love to listen to people and when you hear something interesting, follow up on it. Don't just think, "Well that's an interesting idea" only to find out a year later that the company you could've bought shares in is now up 500-fold. You never want to say woulda, coulda, shoulda...

Market Wizard, Steve Clark on Trading: Grow Your Equity Curve

Trading wisdom recap: Steve Clark , founder of Omni Partners, was featured in Jack Schwager's 2012 book, Hedge Fund Market Wizards .  Clark's interview with Schwager provided us with some valuable trading insights; "Lessons from Hedge Fund Market Wizards: Steve Clark" was one of our most popular posts ever. If I had to pick my favorite sections from Clark's chapter, it would be boiled down to these two concepts: "Do more of what works (and less of what doesn't work)" and "Manage your equity curve". Here's his full quote on the supreme importance of growing your equity curve :  "Your job as a trader is to make the line of your equity curve go from bottom left to top right. That's it. Don't get hung up on other supposed "mandates". Protect your capital and the direction of that equity line. "   I will leave you with one last series of quotes from Steve Clark's interview with Jack Schwager. ...

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4. ...