Warren Buffett has long been a critic of the hedge fund industry and their high fees that eat into profits. Buffett made a bet with Protégé funds for a $1 Million charitable donation. Buffett said that the S&P 500 will return better than hedge funds over the next 10 years, highlighting their expenses of 2% of capital plus a 20% fee on returns. Continue Reading »
Recession worries might soon be behind us, not because of economic growth but instead, the Federal Reserve actions are now holding strong. An inflationary cycle has push all economic indicators up, giving wall street new hope and worried investors back to the markets.
In every economic recession the Federal Reserve has acted exactly the same, ease lending rates and force new credit into the financial system. Their latest actions of increasing new credit to banks, issuing $30 Billion in credit to finance the Bear Sterns buyout and Congress’s economic stimulus package of $150 Billion will soon make its way into the economy and into the pockets of Americans eager to become consumers once again. Continue Reading »
The Federal Government certainly threw Northrop Group a bone today in the form of a $40 Billion contract to produce refueling tankers. The stock was up 6% in after-hours trading but the company still looks like a great buy. Continue Reading »
Nothing has changed the way markets work as much as hedge funds. While these funds are relatively new on the scene, they attract big dollars with the promise of hefty, unregulated returns. So far all we’ve seen is increased volatility. Continue Reading »
It seems 2005 paid off for many hedge fund managers as they are now getting attention for their earnings. In order to be in the top 25 you had to at least make $130 million. Not only that but the top 25 averaged $363 million. Continue Reading »
After Enron, Tyco, and other companies we would have thought that these public companies would take a page from their book and get their accounting correct. Not the case for Fannie Mae (FNM) as they are now facing fines up to $400 million since they decided to cook the books for $11 billion. Continue Reading »
Recently I have discovered a site that will allow investors to get into options and futures for as little as $100. Hedgestreet.com has developed a interesting site that is basic investing 101 and lets you get in on the action for little money compared to the thousands of dollars needed to trade on the Chicago Board of Trade. Continue Reading »
Hedge funds have been talked about by so many people and yet many people really have no idea what they are or what is a hedge fund manager. A hedge fund is a fund set up privately with partners and the investments go outside of traditionally investments. Hedge funds will invest in gaming if the odds are good enough and they will make money. Continue Reading »