Book Review: The Alpha Masters
This book has just been released. I got an early copy. The book is interesting enough that I would like to do a Q&A with the author, and I have contacted the PR flack to do so. To the review: Would you like to understand the mindsets of a variety of successful hedge fund...
Don’t Become the Market
It was late 1993, and I knew that we could make a lot of money if I sold floating-rate Guaranteed Investment Contracts. Let me quote an earlier piece: My goal as an actuarial businessman was to make profits with modest risk for my ultimate owners, who were the mutual policyholders. Once I faced a situation...
Sorted Weekly Tweets
Market Dynamics On Paradigm Shifts http://t.co/h68quEDX Hunter takes us through mental exercises 2 make us intelligently contrarian. “Invert, Always Invert” May 02, 2012 Hedgers’ net short position vanishes in US oil http://t.co/X0hLOWGB Commercial interests do not fear lower prices, could be bullish 4 crude May 02, 2012 There’s Plenty of Money for Junk http://t.co/vXML0Bao...
Sorted Weekly Tweets
Busy week last week. Here’s the economic and other news: =-=-=-=-=-=–=-=-==-=-=-==-=-=-=-=–==-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=- China Bloomberg: Inflated Notions http://t.co/hvMoIFH6 Patrick Chovanec questions whether Chinese economic statistics are correct. $$ Apr 22, 2012 China’s Political Stability Questioned, while Deposit Withdrawals Accelerate http://t.co/X9kJ9oZb Deposits exit China’s banks; many worry $$ Apr 22, 2012 Asia dominates new treasury purchases http://t.co/BXvgGQRi...
Sorted Weekly Tweets
China China’s first bond default could be good market medicine http://t.co/8ShFniYM Bond trader: “We don’t really have a credit risk culture.” $$ Mar 31, 2012 Is China’s slowdown worse than previously estimated? http://t.co/CkZw8tLK Could b business conditions that are worst since 2009. $$ Mar 31, 2012 China Banks Said to Underestimate Local Government...
Book Review: Backstage Wall Street
I have long wanted to see a book that would teach ordinary investors how to avoid being cheated by those that create/sell financial products. If this book isn’t it, the one that surpasses it will be astounding. If Wall Street is a show, this book gives you a peek behind the curtain. This book is...
Book Review: Pandora’s Risk
This is two books in one, and very well done. The main part of the book explains risk and uncertainty in general terms, such that most people can understand it. But for those that can deal with complex math, the latter part of the book offers a lot of additional firepower. Risk is a tough...
Notes on the 2011 Berkshire Hathaway Annual Report, Part 2
Picking up where the last post left off: 13) So Buffett told us he has a successor lined up, but won’t tell us who, but will tell us that the successor doesn’t know that he is the successor. Really does not seem like much of an improvement over the past, except that the CIO function...
Recent Sorted Tweets
Finance Business Breaking Ranks: Former Broker Turns Bomb Thrower http://t.co/q1vpz9dh @reformedbroker interview previews his book: http://t.co/Yigg2sEE $$ Feb 24, 2012 Why CLO managers continue to struggle http://t.co/a13j8jVG Low issuance, warehousing is tough, need more subordination, fewer senior buyers Feb 24, 2012 My Favorite Quote from Baupost’s 2011 Annual Letter http://t.co/VOvbqab3 DIstressed bond mgrs get...
Against Risk Parity, Redux
Here are two articles to read on risk parity: Pro: Pick Your Poison Con: The Hidden Risks of Risk Parity Portfolios I’m on the “con” side of this argument, because I am a risk manager, and have traded a large portfolio of complex bonds. For additional support consider my article Risks, Not Risk. Or read...
Sorted Recent Tweets
Trying a new format here, I think readers will like it better. Most things are better after additional effort. Think of this as a news links by subject post. Economics If you look in the back, it seems that there were 58 respondents. From page 13: Methodology & Panel Selection Invi… http://t.co/p8sVZl9g Feb 06, 2012...
Against Risk Parity
Many investment ideas are promising so long as few do them. Yes, there is an opportunity, but it is limited. “Shh, don’t tell everyone about it.” Thus, the concept of “risk parity.” Lever every asset class up until it has the same volatility as common stocks. Under theoretical conditions, one could make extra money doing...
