What's a Hedge Fund???

Nesti (Mark) · #1 08-06-2010, 01:32 PM

I found this great, easy to understand explanation of what a Hedge Fund is and what they do. Hedge Funds are active right now and are behaving quite ruthlessly in global markets. He explains heaps of other stuff too. Some of the best I've seen.

Four Corners last night was a ripper...if you missed it, you can watch it here at the Four Corners site: What's Yours Is Mine.

BTW, Four Corners Next Monday night (8:30pm) looks pretty cool. Something about US and Australian economics. So I'm trying to get more up-to-speed with the basics before the show (just in case).

PS. I hope you all noticed the slide across all markets over the weekend.

Octane (Humayun) · #2 08-06-2010, 01:40 PM

EconomicsInSpace is another web site, Mark. : P

As mentioned before in another thread, this stuff goes straight over my head, in one ear and out the other. I just don't have the patience to learn any of it.

H

erick (Eric) · #3 08-06-2010, 01:55 PM

Quote:

Originally Posted by Nesti

PS. I hope you all noticed the slide across all markets over the weekend.

Yes, it has absolutely thrilled one of my batches of super that is 100% in shares!

Patience, grasshopper......

adman (Adam) · #4 08-06-2010, 02:00 PM

Quote:

Originally Posted by erick

Yes, it has absolutely thrilled one of my batches of super that is 100% in shares!

Patience, grasshopper......

sounds like you could use a hedge fund erick!

Rokketboy (Jared) · #5 08-06-2010, 02:16 PM

That was very interesting and even more suprising, pretty easy to follow. Thanks for the link.

erick (Eric) · #6 08-06-2010, 02:23 PM

Quote:

Originally Posted by adman

sounds like you could use a hedge fund erick!

A hedgehog would eat this little grasshopper

leon · #7 08-06-2010, 02:35 PM

Err,

maybe to buy a hedge for around your house,

sorry, couldn't resist that one,

other than that I have no clue.

leon

Hagar (Doug) · #8 08-06-2010, 02:38 PM

Ah Leon,,,, with a hedge contract I could sell your hedge even though I don't own it. Enjoy your holiday.

Nesti (Mark) · #9 08-06-2010, 02:40 PM

Quote:

Originally Posted by adman

sounds like you could use a hedge fund erick!

I think most Super Funds ARE variations of Hedge Funds.

Legally enforced gambling of OTHER people's money.

Nesti (Mark) · #10 08-06-2010, 02:43 PM

Quote:

Originally Posted by Rokketboy

That was very interesting and even more suprising, pretty easy to follow. Thanks for the link.

Pleasure! I'm still learning what all these thingamijigs are.

multiweb (Marc) · #11 08-06-2010, 02:53 PM

Quote:

Originally Posted by Nesti

Hedge Funds are active right now and are behaving quite ruthlessly in global markets.

Another elaborate way to screw people with their own money on borrowed funds... sorry! leveraged... and explained in plain English. Great link.

Nesti (Mark) · #12 08-06-2010, 02:58 PM

Ya-know, Astronomy and Astrophysics take advantage of these types of markets and trading, by linking into the speculative markets. Like the new Hollywood shares market which trades by speculating on movies and where insider-trading is allowed...you could speculate on things like the following;

1. Life on Mars
2. Life on other bodies (like Europa, Titan or Enceladus)
3. SETI contact
4. Gravity Waves

And just like the Hollywood trade, entities can fund research which drives the speculation.

With so much liquidity floating around, why not soak-up a few Billion into science projects?

leon · #13 08-06-2010, 02:58 PM

Just stuffing around Doug,

can't you notice I'm bored,

and yea mate its all happening, will give a good report of where we are at shortly.

Leon

avandonk · #14 08-06-2010, 03:00 PM

The people and I use the term loosely that run hedge funds are using someone else's money to bet against someone else's efforts to make a motza if their bet is correct.

These criminals were not only setting up a fund for investors that was designed to fail with their fellow conspirators i.e. the bankers that put the deals together and the ratings agencies. They also then had the nerve to ask for a Government bailout by holding the whole financial system to ransom.

These parasites should be shamed for the scum they are.

It is not good enough to say you do not understand. They are robbing all of us blind by destroying our productive enterprises to leeching our super funds.

My father said many years ago ' Watch the scum that will be attracted by the billions in the new super funds. They will work out how to get hold of these funds by all the standard cons with variations.'

Ponzi anyone?

These bits of slime who just gave themselves multi million dollar bonuses from taxpayers money should be prosecuted for the criminals they are.

I have no problem seeing what they have done. They are all merely criminals.

This was totally predictable but the so called regulators did nothing.

Fortunately this has not happened here in Australia YET!

We are a ripe plum for the plucking!

Bert

AstralTraveller (David) · #15 08-06-2010, 03:32 PM

Quote:

Originally Posted by avandonk

..... They are all merely criminals.
.....
Bert

But are they Bert? Morally - yes of course. But legally?? Did they break laws? If not then why not? Why isn't their behaviour illegal? Was it just an oversight on the part of the lawmakers? Surely there isn't any collusion!

Nesti (Mark) · #16 08-06-2010, 07:21 PM

Quote:

Originally Posted by AstralTraveller

But are they Bert? Morally - yes of course. But legally?? Did they break laws? If not then why not? Why isn't their behaviour illegal? Was it just an oversight on the part of the lawmakers? Surely there isn't any collusion!

I'm afraid that they're creativity in inventing new "Tools" (as they put it) are so fast that legislation is a big fat dairy cow in comparison.

Also, be aware that "the banks can bundle together and sell off toxic Credit Default Swaps (CDF's) faster than the Federal Reserve can print money and then short the currency equally as fast as the paper comes off the rollers".

Out Gunned!

Nesti (Mark) · #17 08-06-2010, 07:32 PM

Quote:

Originally Posted by avandonk

The people and I use the term loosely that run hedge funds are using someone else's money to bet against someone else's efforts to make a motza if their bet is correct.

These criminals were not only setting up a fund for investors that was designed to fail with their fellow conspirators i.e. the bankers that put the deals together and the ratings agencies. They also then had the nerve to ask for a Government bailout by holding the whole financial system to ransom.

These parasites should be shamed for the scum they are.

It is not good enough to say you do not understand. They are robbing all of us blind by destroying our productive enterprises to leeching our super funds.

My father said many years ago ' Watch the scum that will be attracted by the billions in the new super funds. They will work out how to get hold of these funds by all the standard cons with variations.'

Ponzi anyone?

These bits of slime who just gave themselves multi million dollar bonuses from taxpayers money should be prosecuted for the criminals they are.

I have no problem seeing what they have done. They are all merely criminals.

This was totally predictable but the so called regulators did nothing.

Fortunately this has not happened here in Australia YET!

We are a ripe plum for the plucking!

Bert

The Scottish Claymore sword was developed to bludgeon the enemy to death within their own armor...I doubt there's a Pulitzer in that post; but it's funny.

AstralTraveller (David) · #18 08-06-2010, 10:00 PM

Quote:

Originally Posted by Nesti

.... "the banks can bundle together and sell off toxic Credit Default Swaps (CDF's) faster than the Federal Reserve can print money and then short the currency equally as fast as the paper comes off the rollers".

Out Gunned!

I don't understand that and I'm happier not to.

As for guns ... surely there are 'guns' yet to be deployed on the side of good.

Nesti (Mark) · #19 09-06-2010, 12:38 AM

Quote:

Originally Posted by AstralTraveller

I don't understand that and I'm happier not to.

As for guns ... surely there are 'guns' yet to be deployed on the side of good.

The head of Goldman Sachs (Lloyd Blankfein) has been quoted as saying, that the company (Goldman Sachs) can wreck the European Economy faster than they can print money just to keep Europe's head above water.

As for "Guns"...yes, restrictions can be put in place...German Chancellor Angela Merkel has already placed restrictions on Naked Short-Selling. This can slow down runs on currencies by preventing entities (Hedge Funds) from shorting property they don't actually own.

AstralTraveller (David) · #20 09-06-2010, 10:03 AM

Perhaps there should be a blanket law that limits trading to only methods that are specifically allowed. Any proposed new 'instrument' would have to gain approval before it can be used. This would stop the regulators from always having to play catch-up.

Of course such regulation would have to be international; agreed on and inplemented by all the worlds major economies (at least). After Copenhagen I think it is easy to see the probability of that happening. IMHO this just shows up the problems with national governance of issues with an international scope.