Spectre of LTCM Prompts Liquidation Studies
LONDON (HedgeWorld.com)--The liquidation of Long-Term Capital Management after the Russian government defaulted on its rouble-denominated debt is a chilling reminder for any hedge fund investor of what can happen when a bold strategy goes catastrophically wrong. It is thus unsurprising that a whole body of literature is emerging to analyse...
The Chilling Effect of Rumors
This year marks the seventh anni-versary of the Long-Term Capital Management meltdown, but the shadow cast by the collapse of the highly leveraged bond hedge...
IMF Sees Vigilance by Brokerages and Hedge Fund Investors as Best Defense
NEW YORK (HedgeWorld.com)--Excessive leverage by hedge funds could threaten the world financial system ? la the Long-Term Capital Management affair, but more regulation is not necessarily the right approach, said International Monetary Fund official Hung Q. Tran. He was speaking last week at a panel organized by 100 Women in...
Death by Comet
"You never know what is enough, until you know how much is more than enough" -William Blake Someone once told me Myron Scholes said the folks at Long-Term Capital Management thought they had their risk buttoned down. In their minds, they were walking down Madison Avenue, eyes trained on the...
William Jennings Bryan Reborn: Bimetallism Today
JUPITER, Fla. (HedgeWorld.com)-Recent allegations of long-term manipulation of the price of gold and its derivatives bear striking similarities to somewhat older theories about manipulation of the price of silver and its derivatives, and both sets of theorists have noticed. James Cook publishes the James Cook Market Update and maintains a...
Vega Taps Former Fed Governor and LTCM Partner David Mullins
NEW YORK (HedgeWorld.com)--Vega Asset Management, a London-based US$12 billion global macro and fixed-income hedge fund firm, named David Mullins Jr. chief economist. The job comes in...
Alternative Approaches to Calculating Value-at-Ris
NEW YORK (HedgeWorld.com)? Fund blowups slant hedge fund performance measures, causing ?fat tails? in the distribution of returns. Methods that take account of this issue...
The Roads Less Traveled
Planning to travel the alternative investments hig
Netting Improvements: What Everybody Wants, Doesn'
WASHINGTON (HedgeWorld.com)--As the members of Congress flee Washington for their August break, they leave behind a stalled bankruptcy bill, and the issue of financial netting...
Consider the Alternative
When the bears come out of the woods, the best wea