Looking for the lifeboats – The Economist 09-19-15

Salient to Investors: Both equities and government bonds are overvalued but are unlikely to fall in tandem. Long-term investors should ignore short-term market declines because over the long-term, asset prices rise – US equities overcame the dotcom bubble and 2008 financial crisis to reach record highs in 2015. However, equities could be

READ MORE...

Why Hedge Fund Hot Shots Finally Got Hammered – David Stockman’s Contra Corner 09-06-15

Salient to Investors: David Stockman writes: A growing chorus of investors blamed last week’s stock market sell-off on esoteric but increasingly influential trading strategies pioneered by hedge funds like Bridgewater. Hedge fund performance has benefited from broken capital markets rigged by the Fed. Thesecasino gamblers bought every one of the

READ MORE...

Hedge Fund Losses From Commodity Slump Sparking Investor Exodus – BloombergBusiness 08-06-15

Salient to Investors: Cargill, the world’s largest grain trader, shut its commodities hedge fund last month, a sign that commodity speculators are in trouble. Donald Steinbrugge at Agecroft Partners said hedge funds are supposed to make money in both bull and bear markets but managers bias towards rising prices. Steinbrugge

READ MORE...

The Dangers of Investing in Art – Bloomberg 02-12-15

Salient to Investors: Art speculators’ whims often transform art into a terrible investment. Even beautiful art can be a fundamentally fickle asset. Adam Lindemann cites more speculative buying than ever since the financial crisis, but says people avoid artists whose price goes down. In the contemporary art world there is a

READ MORE...

James Says Use Buyouts to Shoot Lights, Not Hedge Funds – Bloomberg 09-18-14

Salient to Investors: Tony James at Blackstone said hedge funds are a way to play the stock market with lower volatility and lower returns – shoot-the-lights-out returns are best left to private equity and real estate. Neil Chriss at Hutchin Hill Capital said Calpers’ hedge-fund allocation was not big enough to

READ MORE...

Texas Pension Cuts Hedge Fund Exposure by 1 Percentage Point – Bloomberg 09-18-14

Salient to Investors: The Teacher Retirement System of Texas cut its hedge fund allocation to 8% from 9%, cut equities by 4 percentage points and fixed-income by 2 percentage points, and increased risk parity – a strategy based on allocation of risk and private equity and real assets – and

READ MORE...