Argentina vs. Hedge Funds: Who is Seeking a Sweet Deal?

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The United States court decision ordering Argentina to pay $1.3 billion to hedge funds is threatening to throw the South American country and the entire sovereign debt market into turmoil. However, are the two holdout investors— Elliott Management and Aurelius Capital Management—in the Argentina debt restructuring case looking for a better deal? Are they trying to use the U.S. court system to circumvent international positions on debt … [Read more...]

Money Goes Where It’s Treated Best

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As the old saying goes “money goes where it's treated best.” And it is certainly true when it comes to regulating an industry. In regulating an industry, the government must treat money well in order to maintain the health of the companies under its jurisdiction. The regulation of the financial sector imposed by The Obama Administration will have tremendous negative consequences if the old proverb is not quickly learned. The negative effect … [Read more...]

Can JOBS Act Lead To The Next Financial Trouble?

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Finra study shows investors lack financial literacy to understand JOBS Act hedge fund advertising provision can lead to next financial crisis. Congress passed the JOBS Act, allowing hedge funds and private equity groups are allowed to advertise their offerings to the general public. While hedge funds are open to individuals who are accredited investors (meet certain net worth criteria), the possibility that a new wave of investors will be … [Read more...]

Moore Capital Plans to “Go Small”

Hedge fund star Louis Bacon founder of Moore Capital says he will be giving back a large sum of to investors. Of course this is not an altruistic play as it is about the impact the euro zone crisis has had on traders as well as EU leaders’ inability to resolve it one way or another.    In any event, Moore Capital plans to “go small” because Mr. Bacon believes 18 months of disappointing investment returns requires giving back profits … [Read more...]

Can you see hedge funds running commercials?

The hedge fund industry is due to change rapidly because of a little-publicized provision of the recently passed JOBS Act. Traditionally hedge funds were barred from soliciting and advertising to the general public in exchange for being exempt from registration with the SEC.    The rationale, hedge funds offer risky investments that are only suitable for savvy investors who can fend for themselves without government protection.   … [Read more...]

Obama’s Plan Could Affect Hedge Funds

Currently, the proposed legislation to restructure the U.S. financial regulatory system is making its way through both houses of Congress.   The plan is aimed to require stability, safety and systemic risk to play a larger role in the planning, thinking and strategizing of every financial institution going forward.    President Barack Obama is about to reveal details of the plan that will directly and indirectly impact the hedge fund … [Read more...]

Good News for Hedge Funds in May

Finally, hedge funds had a good month!   According to Eurekahedge reports, May is the “best month in nine years.”   The Singapore-based data provider’s Eurekahedge showed that Hedge Fund Index rose 5.2% last month, based on preliminary figures, its best since February of 2000.   The index is now up 9.2% on the year.  Asian hedge funds were the best performers in May, rising 9%, followed by emerging markets funds a 8.5%, a record for … [Read more...]