Hottest Links: Hedge fund Galore, GME, A Shares, SAC Strikes Out


Hottest links for Tuesday November 12th, 2013 the very 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. Also…. soon if you sign up you will get a free copy of our new e-book on value investing. Stay tuned for the news.

Top stories for today are included below. No time for any funny announcement or important one so see below for all our stories!

Hottest Links: Stories

DealBook Conference: Dalio, Diller, Fink, Loeb, Griffin, Musk, Ross

Macro Hedge Funds Earn Huge Profits In Volatile Macro Environment

Yarra Square Investing Greenhaven Road CapitalWith the S&P 500 falling a double-digit percentage in the first half, most equity hedge fund managers struggled to keep their heads above water. The performance of the equity hedge fund sector stands in stark contrast to macro hedge funds, which are enjoying one of the best runs of good performance since the financial crisis. Read More

The New York Times is hosting it second annual DealBook conference in Manhattan from 8:00 AM EST to 5:40 PM EST. Speakers include Preet Bharara, David Bonderman, Ray Dalio, Barry Diller, Laurence D. Fink, Valerie Jarrett, Daniel S. Loeb, Elon Musk, Ruth Porat and David M. Rubenstein, among others. [ValueWalk]

Value Investing

Dairy Compounders Ignore Macro Noise

When Hemant ordered cheese platter for his desert, it triggered me to think about the inspiring stories of another outstanding Indian entrepreneur Devendra and Barry Irvin of Bega Cheese Ltd (ASX:BGA). Interestingly, while the world is fixated on the QE tapering macro challenges, Warrnambool Cheese & Butter Factory Co. (ASX:WCB) is up 90% in less than three months since Sept. [Koon Boon Kee, BeyondProxy]

GameStop and Contrarian Investment Approach

GameStop Corp. (NYSE:GME) is currently the world’s largest retailer of video games. While market sentiment over the past four years was often unkind, our deep knowledge of the company provided the long-term confidence in both its management and business prospects when many were fleeing the stock or selling it short. [Jay Kaplan, Royce Funds]


The Inefficiency Of China’s ‘A Shares’ In A Chart

Let’s conjure an imaginary stock listing in Toronto for Apple Inc. (NASDAQ:AAPL) or Tesla Motors Inc (NASDAQ:TSLA). We’ll call them “T shares.” How will this other share class trade? Things work differently in China’s tightly restricted A-share market. Here, a company’s stock often trades to wide premiums versus the very same company’s Hong Kong-listed shares. [Brendan Conway, Focus on Funds]

Hottest Links

Hedge Fund Beast

Investors need to starve the hedge fund beast. The industry model mainly benefits intermediaries, writes Jonathan Ford. [Jonathan Ford, FT]

Why RSP’s Outperformance Will Soon Fade

One of the ETFs that did, for quite some time, was the Rydex S&P Equal Weight ETF (NYSEARCA:RSP). In fact, as recently as Oct. 31, we reported that RSP was generating nearly 5 percentage points of annualized alpha versus the S&P 500 Index. [Dave Nadig, IndexUniverse]

Sac Hasn’t Beat S&P Since 2010 Insider Trading Probe

In the almost three years since then, SAC has netted very pedestrian annualized returns of 13.45 percent — trailing even the S&P 500 (INDEXSP:.INX)’s 14.4 percent gain over the same period. [Michelle Celarier, New York Post]

For Better Performance, Hedge Funds Seek The Inner Trader

GLG Partners has devoted what it says are significant resources toward discovering why its traders are successful or not. Seven years ago, the company began to collect data to analyze its traders’ “hit rate,” meaning the percentage of successful trades. [ Alexandra Stevenson, DealBook]


“You’re the CEO of a company who got the job by lying about having been captain of your high school debate team. Dan Loeb has called three times. What do you do?”

“Word on the Street is that Bill Ackman has tried your protein shakes and he thinks they taste like shit. What’s your next move?”

“Carl Icahn has been standing in your lobby for the last 20 minutes shouting about your board reminding him ofthe kids he used beat up in Queens and telling the receptionist that if she’s listening to let him talk. What happens next?”

[Bess Levin, DealBreaker]

Still Fearful For Your Gold-Miner Fund?

Nikolaj Gammeltoft and Debarati Roy of Bloomberg News report this morning defensive put options on Market Vectors Gold Miners ETF (NYSEARCA:GDX) are getting inexpensive in a story this morning entitled “Gold-Mining Puts at Four-Year Low Signal Worst Is Over: Options.” [Brendan Conway, Foucs on Funds]

Hottest Links



Stepping Up With a Plan to Save American Cities

One municipal bankruptcy expert has been devising a structure that may help cities find their way out of the jam. James E. Spiotto, a partner with Chapman & Cutler in Chicago, has loosely modeled his idea on the special-purpose entities that helped tide New York City through its fiscal crisis of 1975. [Mary Williams Walsh, DealBook]

Banker Has To Give The Right Numbers Back To Morgan Stanley

Well, a Connecticut judge has ordered the banker, Denis O’Brien, to return a list of correct phone numbers to Morgan Stanley (NYSE:MS) and ditch any copies he might have made for himself. [Christina Rexrode, The Tell]

To Create Jobs, The Stock Market Needs A Little Inefficiency

Think about it. McDonald’s Corporation (NYSE:MCD),, Inc. (NASDAQ:AMZN) and Costco Wholesale Corporation (NASDAQ:COST) dominate their industries with some combination of huge choice, overall lower prices and massive volume. At scale, efficient markets can be great. Consumers get more for less, and producers profit from the combination of high volume at low cost. [Scott Kupor, CNNMoney]

Jessica Alba’s Startup, Honest Company, Adds $25 Million

The Honest Company today announced that it has raised $25 million in new venture capital funding, led by existing investor Institutional Venture Partners. [Dan Primack, CNNmoney]

Hottest Links: Not The Onion

‘Noisy’ pianist faces seven years in prison

A professional pianist from Spain is facing seven and a half years behind bars after a neighbour complained her constant practising had caused her psychological damage. [George Mills, The Local]

Updated on

No posts to display