Posts Tagged 'Hedge Funds'

Hedge Fund Industry Returns, Not as Good as They Appear

An interesting study by a couple of Seton Hall University economists shows a “hidden” gap in historical hedge fund returns.  The authors found a suveriorship bias in hedge fund returns, amplified by failing funds that stop reporting their performance.  An interesting study indeed…

Daily “Ways-to-Play” The News Before the Moves 3/30/2010

Sign up for our Daily “Ways-to-Play” Email Today

The equity market rally is nearing its end

That’s the view of Morgan Stanley’s Teun Draaisma, who reckons the much feared tightening is about to begin in earnest.

ETFDesk users see this as a potential opportunity to: sell DJIA DIAMONDS (DIA)

sell S&P 500 SPDR (SPY)

sell iShares Russell 2000 (IWM);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Must Be A Bull Market: The Dumbest Job Ever, Day Trading, Is Cool Again

Apparently, day trading is back. The New York Times says so. So it must be.

Check out how others are using ETFs to capitalize on this news or add your own opinion

Actively Managed Mutual Funds Are Obsolete

With index funds and ETFs offering diversification at lower cost, actively managed funds have lost their original purpose.

Check out how others are using ETFs to capitalize on this news or add your own opinion

Why Fund Managers’ Hot Performance Isn’t So Hot

Where have all the geniuses been hiding, and why have they suddenly been popping up everywhere?
Check out how others are using ETFs to capitalize on this news or add your own opinion

Euro Trashed

THE European Monetary Union, the basis of the euro, began with a grand illusion. On one side were countries — Austria, Finland, Germany and the Netherlands — whose currencies had persistently appreciated, both within Europe and worldwide; the countries on the other side — Belgium, France, Greece, Italy, Portugal and Spain — had persistently depreciating currencies. Yet the union was devised as a one-size-fits-all structure. As a result, some countries had to use creative accountin

ETFDesk users see this as a potential opportunity to: buy iShares MSCI-Germany (EWG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Strong Earnings May Already Be Baked In

For investors, the thrill of earnings season may be over before it’s even begun. The first quarter ends on Wednesday, and earnings season gets into full swing with aluminum giant Alcoa’s results due out on April 12.

ETFDesk users see this as a potential opportunity to: sell DJIA DIAMONDS (DIA)

sell S&P 500 SPDR (SPY)

sell Nasdaq-100 Index Tracking Stock (QQQQ)

sell iShares Russell 2000 (IWM);

Check out how others are using ETFs to capitalize on this news or add your own opinion

China becomes world’s new diabetes capital

China now has more people with diabetes than any other country, a new report shows, making it clear that the nation’s soaring economic growth is taking a toll on public health.

ETFDesk users see this as a potential opportunity to: buy Biotech HOLDRS (BBH);

buy iShares Dow Jones U.S. Medical Devices Index Fund (IHI);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Daily “Ways-to-Play” The News Before the Moves 2/23/2010

Sign up for our Daily “Ways-to-Play” Email Today

Thai Capital Webcast Alert: Meet the Manager

Thai Capital Webcast Alert: Meet the Manager

buy Thai Capital Fund (TF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Hong Kong Stocks Rise, Led by Developers Before Land Auction

Hong Kong Stocks Rise, Led by Developers Before Land Auction

buy Asia Pacific Fund (APB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

RPT-GLOBAL MARKETS-Asia shares jump, euro firms on Greece report

RPT-GLOBAL MARKETS-Asia shares jump, euro firms on Greece report

buy Asia Pacific Fund (APB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Asian shares jump on signs of US revival

Asian shares jump on signs of US revival

buy Asia Pacific Fund (APB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The euro will face bigger tests than Greece – Soros

Otmar Issing, one of the fathers of the euro, correctly states the principle on which the single currency was founded. As he wrote in the FT last week, the euro was meant to be a monetary union but not a political one. Participating states established a common central bank but refused to surrender the right to tax their citizens to a common authority. This principle was enshrined in the Maastricht treaty and has since been rigorously interpreted by the German constitutional court.

sell Rydex Euro Currency Trust (FXE)

buy ProShares UltraShort Euro (EUO);

Check out how others are using ETFs to capitalize on this news or add your own opinion

‘BTW, Have You Seen the ETF of CEFs?’

No, the title of this article is not the contents of an errant text message from a cell phone of a thirteen year old, but instead it’s actually a headline from last Friday’s market action. Invesco PowerShares debuted PCEF, the CEF Income Composite Portfolio, which based on our experiences and conversations with investment advisors, we believe will gain traction quickly as unique in its class.

Check out how others are using ETFs to capitalize on this news or add your own opinion

‘Next Greece’ Search Is on as Hedge Funds Circle: William Pesek

Feb. 22 (Bloomberg) — The search for the next Greece is finding its way to an unlikely place: Japan.

sell iShares MSCI-Japan (EWJ)

sell Rydex Japanese Yen Trust (FXY)

buy UltraShort MSCI Japan ProShares (EWV)

sell WisdomTree Dreyfus Japanese Yen Fund (JYF)

buy ProShares UltraShort Yen (YCS);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Millions of Unemployed Face Years Without Jobs

Peoples biggest asset is their job, not their house. This bodes poorly for home prices.

sell SPDR S&P Homebuilders ETF (XHB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Dangerously Rich Fertilizer Mix

The danger of playing with fertilizer is that it blows up in your face. Investors should take note given the recent frenetic takeover activity in the fertilizer industry. With corporate valuations looking stretched and a mixed outlook for underlying weather-sensitive fertilizer prices, well above their 2009 lows, the conditions look set for some volatility.

sell Market Vectors–Agribusiness ETF (MOO);

Check out how others are using ETFs to capitalize on this news or add your own opinion

German Business Confidence Unexpectedly Declines

German business confidence unexpectedly fell for the first time in 11 months in February as the coldest winter in 14 years damped retail sales and construction.

sell iShares MSCI-Germany (EWG)

sell Western Asset Variable Rate Strategic Fund, Inc (GFY);

Check out how others are using ETFs to capitalize on this news or add your own opinion

El-Erian Sees More China Flexibility as Currency Strengthens

Pacific Investment Management Co.’s Mohamed El-Erian says China is likely to adopt more market-based policies “within the next two years,” cementing the view of investors who are driving the Asian nation’s currency to its largest gains in a year.

buy Market Vectors Chinese Renminbi USD ETNs (CNY);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Over Done: Homebuilders Reaching a Top?

The homebuilders have seen an impressive rally since March ‘09 lows, with ITB and XHB outpacing the S&P 500 by about 40%. It shouldn’t be a huge suprise since homebuilders took a beating in 2008, falling much more than the broad market indices before and during the crisis. However, they have contiuned to outpace the S&P 500 so far this year, with ITB up 9.76%, XHB up 5.24% and the S&P (SPY) down 1.5% (returns as of Feb. 19th). One has to wonder have homebuilders come too far too fast?

buy UltraShort Real Estate ProShares (SRS)

sell SPDR S&P Homebuilders ETF (XHB)

sell iShares Dow Jones U.S. Home Construction Index Fund (ITB)

sell iShares DJ US Real Estate (IYR);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Harvard’s Rogoff Sees Sovereign Defaults, ‘Painful’ Austerity

Ballooning debt is likely to force several countries to default and the U.S. to cut spending, according to Harvard University Professor Kenneth Rogoff, who in 2008 predicted the failure of big American banks.

sell iShares Emerging Market Bond Exchange Traded Fund (EMB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Chart of the Day – Feb 15 2010 – Financials

Exchange-traded funds: Trillion-dollar babies

Interesting article from the Economist of the fast-growing ETF industry.  ETF AUM has recently crossed the $1 trillion mark with nearly 2000 list funds worldwide.  The growth in ETFs has been nothing less than spectacular.  However, we do share some of the worries presented in the article:

First, new launches are focusing on specialised asset classes. In the latest example, Marshall Wace, a hedge fund, is launching its own ETF. The total costs on such funds are higher than on those tracking broad indices like the S&P 500, undermining the model’s low-cost rationale.

Second, although specialised funds are very useful for professional investors, they may tempt retail investors into taking too much risk. Emerging markets and commodities were among the fastest-growing ETF types in 2009. The biggest gold ETF, run by State Street, now has a higher market value than Barrick, the world’s biggest gold miner. Some blame the rapid growth of gold ETFs for pushing the bullion price to record peaks in late 2009.

Third, because it is easy for private investors to buy and sell ETFs, they may be tempted to trade them too often. This will erode their cost advantage, since every transaction involves a fee. Trading activity was down by 38% last year, at $50 billion a day. But if markets keep rising, ETFs may be to the next generation of day-traders what dotcom stocks were in the late 1990s.

However, most of the specialized funds still have lower fees than the majority of Mutual Funds, Hedge Funds, etc.  Take a fund like VXX (iPath S&P 500 VIX Short-Term Futures ETN), while the .89% fee is not insignificant, it is much lowever than the typical 1-2% of Specialzed Mutual Funds, and Hedge Funds.   We believe the portfolio hedging capablilites that funds like VXX provide, outweigh a slightly higher cost.  Frankly, before the boom of asset class specialized ETFs, most investors had to rely on pricey Asset Managers to provide such hedging capabilites.  ETFs have blown that door wide open and have given investors powerful tools to allocate asset, hedge and speculate like the pros. 

In regards to risk, investors can always find it no matter what.  Margin accoutns and options have long given the individual investor access to high amounts of leverage.  The 2x/3x ETFs might provide a little more ease in doing so, but certainly are not creating anything new.

Daily “Ways-to-Play” The News Before the Moves 1/08/2010

Sign up for our Daily “Ways-to-Play” Email Today

China Raises Key Interbank Rate

China’s central bank unexpectedly raised a key interbank market interest rate Thursday for the first time in nearly five months, signaling a change in its policy focus toward pre-empting inflation risks in the new year.

buy Market Vectors Chinese Renminbi USD ETNs (CNY);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Hello, frugality; goodbye, good life

By Michael Brush MSN Money Goodbye, $5 coffee. So long, gourmet supermarket food, $3,000 handbags and McMansions. Adios, expensive shows and gambling tables in Las Vegas.

buy PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)

buy SPDR-Consumer Staples (XLP)

buy Vanguard Consumer Staples ETF (VDC)

buyWisdomTree International Consumer Non-Cyclical Sector Fund (DPN)

buy First Trust Consumer Staples AlphaDEX Fund (FXG);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Vacancies Keep Rising, Rents Keep Falling

By Daniel Costello Apartment vacancies hit a 30-year high in the fourth quarter, and rents fell, as landlords struggled to keep existing tenants and attract new ones.

sell iShares FTSE NAREIT Residential Index Fund (REZ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Mexico Fund Monthly Summary Report Dec 2009

Mexico Fund Monthly Summary Report Dec 2009

buy Mexico Fund (MXF);
Check out how others are using ETFs to capitalize on this news or add your own opinion

Hedge Funds Review – Hedge funds review alternative investment …

Hedge Funds Review – Hedge funds review alternative investment …

buy Asia Pacific Fund (APB);

Check out how others are using ETFs to capitalize on this news or add your own opinion

New Investment Tools Approved by Regulator in China

China took a major step Friday toward making its capital market system more sophisticated and perhaps more stable as it agreed to give investors a new and powerful set of risk-management tools.

buy iShares FTSE/Xinhua China 25 (FXI)

buy SPDR S&P China ETF (GXC);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Internal Divisions and the Chinese Stimulus Plan

“Ever since the package was passed in November, Beijing has recited the mantra of the need to shift China’s economy from its heavy dependence on exports to one more driven by domestic consumption. But now that the sense of immediate crisis has passed, the stimulus policies are being rethought — and in an unusual development for China, they are being vigorously debated in the Chinese media.”

sell PowerShares Golden Dragon Halter USX China Portfolio (PGJ)

sell iShares FTSE/Xinhua China 25 (FXI);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Daily “Ways-to-Play” The News Before the Moves 12/23/2009

Sign up for our Daily “Ways-to-Play” Email Today

Gallup Economic Weekly: Consumers Remain Cautious

PRINCETON, NJ — Perhaps it was the big East Coast snowstorm, the reduced holiday travel plans, or just a cautious consumer after a difficult year, but self-reported consumer spending continues to run 20% below last year’s depressed weekly comparables.

sell SPDR-Consumer Discretionary (XLY)

buy SPDR-Consumer Staples (XLP);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The Wall STreet Transcrip – Investing in The Mexico Fund

The Wall STreet Transcrip – Investing in The Mexico Fund

buy Mexico Fund (MXF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

SGF October 31, 2009 Annual Report

SGF October 31, 2009 Annual Report

buy Singapore Fund (SGF);

Check out how others are using ETFs to capitalize on this news or add your own opinion

JEQ October 31, 2009 Annual Report

JEQ October 31, 2009 Annual Report

buy Japan Equity Fund (JEQ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The age of China: Chinese workers will become scarcer (The Economist)

SINCE the 1970s China’s birth rate has plummeted while the number of elderly people has risen only gradually. As a result its “dependency ratio”—the proportion of dependents to people at work—is low. This has helped to fuel China’s prodigious growth. But this “demographic dividend” will peak in 2010.

sell iShares FTSE/Xinhua China 25 (FXI)

sell SPDR S&P China ETF (GXC);

Check out how others are using ETFs to capitalize on this news or add your own opinion

JEQ October 31, 2009 Annual Report

JEQ October 31, 2009 Annual Report

buy Japan Equity Fund (JEQ);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Small-business bankruptcies rise 81% in California

With credit tight and consumers still pinching their pennies, many business owners find they can’t go on.

sell KBW Regional Banking ETF (KRE);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Playing Ponzi

The legacy of the financial crisis will continue for some years yet in advanced economies

sell iShares S&P/Citigroup International Treasury Fund (IGOV);

Check out how others are using ETFs to capitalize on this news or add your own opinion

The Iranian Incursion in Context

“Multiple sources have reported that Tehran ordered the incident. The Iranian government is aware that Washington has said the end of 2009 was to be the deadline for taking action against Iran over its nuclear program — and that according to a White House source, the United States could extend that deadline to Jan. 15, 2010.” – Seems already priced in…

sell PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

sell United States Oil Fund LP (USO)

sell United States 12 Month Oil Fund, LP (USL);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Top hedge funds bet on big yields rise

The recent rise in long-term US interest rates comes as good news for several leading hedge fund managers, including John Paulson, who have positioned their trading books to benefit from higher yields on US Treasury securities.

sell iShares Lehman 10-20 Year Treasury Bond Fund (TLH)

sell Vanguard Extended Duration ETF (EDV)

buy Direxion Daily 10-Yr Treasury Bear 3x Shares (TYO)

buy Direxion Daily 30-Yr Treasury Bear 3x Shares (TMV)

sell Long-Term Govmt Bond ETF (VGLT);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Make Bank on Bank Loans

“With the economy on the mend, though, analysts expect the $500 billion market for bank loans to improve. Analysts forecast that the default rate on bank loans will drop back to around 4 percent in 2010, near the historical average. That could help prices, which tend to rise as default rates go down, says Gunther Stein, chief investment officer for Symphony Asset Management, a large manager of bank-loan funds.”

buy Eaton Vance Floating Rate Income Trust (EFT)

buyFirst Trust/Four Corners Senior Floating Rate Income II (FCT);

Check out how others are using ETFs to capitalize on this news or add your own opinion

Top hedge funds bet on big rise in yields

Mr Paulson, who made big gains earlier this decade by betting against the subprime mortgage market and whose firm, Paulson & Co, manages $33bn, has said he believes that government stimulus efforts would inevitably lead to higher inflation and a corresponding rise in rates.

buy UltraShort Lehman 20+ Year Treasury ProShares (TBT);

Check out how others are using ETFs to capitalize on this news or add your own opinion

New Home Sales Plunge 11.3 Percent!

Sales of new homes in the US dropped 11.3% to an annualized rate of 355k units in November.

buy UltraShort Real Estate ProShares (SRS)

sell SPDR S&P Homebuilders ETF (XHB)

sell iShares Dow Jones U.S. Home Construction Index Fund (ITB)

sell iShares DJ US Real Estate (IYR);

Check out how others are using ETFs to capitalize on this news or add your own opinion


Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 39 other followers

ETFDesk.com

ETFDesk Spotlight

April 2017
M T W T F S S
« May    
 12
3456789
10111213141516
17181920212223
24252627282930