Hottest links for Tuesday November 5th, 2013 the late edition (see Monday’s edition of hottest links). Get our free daily newsletter (which HAS BEEN RECENTLY UPDATED) and never miss a single linkfest.

Top stories for today…. You thought NQ Mobile Inc (NYSE:NQ) drama was over didn’t you? Well you were wrong, and if you thought Herbalife Ltd (NYSE:HLF) saga was over you were also wrong; Lots of great articles on value stocks, funds, and an insanely good post with a list of investment calculators; How John Paulson made money this year; And guess what Miss USA was mistaken for? That and much more below.

Several links found via Abnormal Returns

Hottest Links

Value Investing

Newsletter Writers Are Wicked Bullish

AAII survey readings came in at 45% bulls and 21.5% bears. Bullish readings have been quite elevated recently while bearish readings fell to extremely lows of just 17% last week. The AAII bull ratio has once again risen near the bullish extremes and over the last two weeks remains above 1.5 standard deviation mean. [Tiho, The Short Side of Long]

Hottest Links

Algorithms Continue To Make Inroads At Hedge Funds

We ask because Institutional Investor has dedicated several pages to considering the imminent death of human insight in finance, as the machines squish take over. [Dan McCrum, FT Alphaville]

Sunlink: Liquidating Their Way To Profits

SunLink Health Systems, Inc. (NYSEMKT:SSY) is in a unique position not unlike many companies on the brink of failure.  The company’s management needs to work hard to liquidate balance sheet assets to stave off potential failure. [Nate Tobik, Oddball Stocks]

Financial Calculators And Tools Collected

Like me, you’ve probably amassed a sizeable collection of financial calculators to help you plan your investments, savings, and retirement. [The Accumulator, Monevator]


Is There an ‘ETF Effect’ in Junk Bonds?

Hougan was asking specifically about the bonds behind SPDR Barclays Capital High Yield Bnd ETF (NYSEARCA:JNK) and iShares iBoxx $ High Yid Corp Bond (ETF) (NYSEARCA:HYG), but Gilligan added he sees a similar trend in preferred stocks. [Brendan Conway, Focus on Funds]

Converting From ‘Hedge’ to ‘Mutual’ Fund

Turning a hedge fund into a mutual fund, thus increasing liquidity and reducing restrictions on who can invest, isn’t as complex an operation as one might think. [Ari I. Weinberg, The Wall Street Journal]

Why a Pension Case Will Not Change Private Equity Tax Law

In a recent Deal Professor column, Steven M. Davidoff writes that a recent pension case decision involving Sun Capital Partners “upends the current tax treatment of carried interest.” [Steve Judge, DealBook]

Turney Duff’s Insider Trading 101

Turney Duff years in the game mostly pre-date the recent insider trading crackdown, but for what it’s worth, here’s his Insider Trading 101 rules. [Joshua M Brown, The Reformed Broker]

Low Expectations And Cost Cutting Driving Earnings Surprises

BorgWarner Inc. (NYSE:BWA) reported strong earnings growth and surprised to the upside this week, with its EPS of $1.40 representing 18% growth and beating the $1.34 consensus. Merck & Co., Inc. (NYSE:MRK) reported a 3.2% decline in earnings this week and an even larger 4.0% decline in revenue. [Greg Harrison, AlphaNow]

Hottest Links

Hedge Funds’ ‘Two and Twenty’ Era is ‘Done’

“The days of 2 and 20 for high-quality funds we think are done,” David Katz, president and COO of Larch Lane Advisors, told conferencegoers. Larch Lane seeds emerging hedge-fund managers. That makes the firm something of a bellwether on the subject. [Brendan Conway, Focus on Funds]

Does Your Alternative Asset Class Actually Provide Portfolio Diversification?

Morningstar has a handful of highly rated funds in this category, including  Gateway Fund Class A Shares (MUTF:GATEX) and  Wasatch Long/Short Fund Investor Class (MUTF:FMLSX); their specific strategies and managers, rather than their diversifying properties, are the biggest factor driving those recommendations. [Christine Benz, Morningstar]


Private Equity Powers Surge

Private equity is increasingly active in money managers. [Madison Marriage, FT]

John Paulson

How John Paulson made money this year. [Stephen Foley, FT]

Greek Companies Unable To Pay Taxes Explode

Kathimerini reports, in what is now nail overkill on the Greek economic coffin, that “hundreds of thousands of enterprises are unable to fulfill their tax obligations, according to the data published on Monday by the Finance Ministry. [Tyler Durden, Zero Hedge]

How Rich You’d Be If You Bought Stock In Icahn Enterprises

Icahn Enterprises LP (NASDAQ:IEP) reported revenues of $5.7 billion for the three months ended September 30, 2013 and net income attributable to Icahn Enterprises of $472 million. That’s up from $4.5 billion of revenues and a net income of $84 million for the same quarter in 2012. [Linette Lopez, Business Insider]

Hottest Links: Not The Onion

Miss USA mistaken as a Transformer at Miss Universe pageant

Rocket Man? Iron Man? Optimus Prime? Nope, it was Miss USA Erin Brady wearing we-don’t-know-what-or-why during the national costume competition at the 2013 Miss Universe pageant in Moscow on Sunday. [Lisa Gutierrez, The Kansas City Star]