Salient to Investors: Credit-derivatives traders are being replaced by machines as automated trading makes humans too expensive. Michael Karp at Options Group said that as late as 2005, managing directors on credit-derivative trading desks were being paid an average $250,000 in salaries and $1.75 million in bonuses. Peter Tchir at TF Market Advisors said
READ MORE... →Salient to Investors: Hedge funds cut bullish wagers on commodities by the most since June, copper holdings fell to an eight-week low, gold wagers are the smallest since September, and oil the lowest in four months. Sales trailed estimates at 59 percent of US companies that released Q3 results through Nov. 2. Rob Haworth at US
READ MORE... →Salient to Investors: Eugen Weinberg at Commerzbank predicts Brent crude will rebound toward $110 a barrel this month, and says the oil markets prefer Obama. Morgan Stanley said Brent will remain in a range of $105 to $110 as higher refinery runs offsets global economic risks. Ken Hasegawa at Newedge Group said we have plenty of crude worldwide,
READ MORE... →Salient to Investors: Emeralds are rarer than diamonds but cheaper. IDMA said at current growth rates, emeralds could take more than 20 percent of diamonds’ market share within two decades. Red, green and blue stones comprise just 10 percent of global gem sales and lack standardized pricing. The colored gem market was equal in size
READ MORE... →Salient to Investors: Salient Partners LP is limiting withdrawals after clients pulled more than $1 billion this year amid lackluster returns. The most sophisticated institutional investors are getting the same treatment that endowments and foundations received in 2008: a manager is blocking them from getting their money out. GFIA said that
READ MORE... →Salient to Investors: The HSI Volatility Index reached a six-year low earlier this month, and the Nikkei Stock Average Volatility Index is trading near a 20-month low. Andrew Wong at Fortress Investment Group said the last time we heard that volatility was never going to rebound was in late 2006, just
READ MORE... →Salient to Investors: Julian Robertson at Tiger Management said hedge funds positioned for a “disaster” are making a mistake – so bearish that they’re not going to get out of it without a black-swan type event. The Bloomberg Global Aggregate Hedge Fund Index is up 3.1 percent in 2012 through September versus
READ MORE... →Salient to Investors: Investors are growing wary of publicly traded securities as interest rate cuts at central banks helped inject liquidity into markets, bolstering bonds and stocks. Scott Kalb at KLTI Advisors said: Sovereign wealth funds are increasing their allocations to alternatives Institutional investors are focusing on hedge funds and private
READ MORE... →Salient to Investors: Luca Molinari at Warburg Pincus is targeting infrastructure service providers in Brazil which will grow significantly in the coming years. BTG Pactual Participations and Carlyle Group also seek to profit from investments needed to upgrade Brazil’s infrastructure for the World Cup and 2016 Summer Olympic Games. Eduardo Centola at Banco
READ MORE... →Salient to Investors: No U.S. law prevents a convicted felon from managing a hedge fund, as long as that person isn’t required to be registered under the Investment Advisers Act. Wall Street crooks either get rich by cheating their clients or by cheat for their clients. The stock market is soaring
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