Energy is a Risky Business
(ContentDesk) August 15, 2005 -- Energy trading is not for amateurs who think that they just bring over forex traders for a swing at the fences and get those great returns. Well, get real folks, some experienced but lesser talented hedge fund managers have blown up. Some big losses at investment banks in oil trading recently are also showing that energy risk is real, deep, complex and getting substantially more risky.The often quoted remark that "traditional market theory would say that greater liquidity and thus less volatility" is just not true. I have had a continuing debate on 3 continents with economists who look for mean reversion and less volatility due to greater liquidity arguments.
Let me say it straight one more time.
It is different this time. When heating oil spreads go over gasoline this summer, it is different. When natural gas volatility goes down to 20% this spring, it is different. The old models and templates of energy trading are wrong. This is truly a new time with the rapid financialization of energy commodity markets with multinational oil, investment banks and hedge funds creating "the triangle of trading." The mechanistic trading that I have seen at some hedge funds prove it.
They don't get the returns. Volatility is rising because risk is endemic in the energy patch and there are more risks than ever before.
The fact also is that energy markets are a long way from financial maturity and natural gas have now just gotten back to gas market liquidity pre Enron's demise in December 2001.When the death of Enchanted Rock, a $200 million fund, mentions these new factors, other hedge fund managers ought to listen to the truth of that very brave manager who told it like it is and returned money to investors.
Things are risky out there.The fact is if you are going to play in the big leagues you better be prepared for down markets, volatility, weather factors, supply/demand factors, geopolitical risk like you have never seen before, transportation and supply logistics that are complex not to mention the continued globalization of the international energy business. You also need unprecedented access to information flow.
Risk management in this emerging environment of speed funds, more volatility and risk is not for the faint hearted and the dumb. It means use of knowledge, experience and a contrarian streak that simply can not be taught. It is learned by doing. This is a wake up call for many hedge funds to the many risks of the energy complex. The rewards are only there for the smart and disciplined.
Welcome to the Energy Club..
Energy is a Risky Business
(ContentDesk) August 15, 2005 -- Energy trading is not for amateurs who think that they just bring over forex traders for a swing at the fences and get those great returns. Well, get real folks, some experienced but lesser talented hedge fund managers have blown up. Some big losses at investment banks in oil trading recently are also showing that energy risk is real, deep, complex and getting substantially more risky.The often quoted remark that "traditional market theory would say that greater liquidity and thus less volatility" is just not true. I have had a continuing debate on 3 continents with economists who look for mean reversion and less volatility due to greater liquidity arguments.
Let me say it straight one more time.
It is different this time. When heating oil spreads go over gasoline this summer, it is different. When natural gas volatility goes down to 20% this spring, it is different. The old models and templates of energy trading are wrong. This is truly...
Energy is a Risky Business
Hedge funds > Energy is a Risky Business
The Hedge Fund Headache
The Hedge Fund HeadacheByHedge Funds are dangerous. They play with the D-bomb and Hedge Fund managersdon't know what they are doing. They are like children playing with alandmine in a sandbox. It's fun and exciting until the darn thing goes off.A D-bomb explosion would have the same impact on the global financialmarket, as an H-bomb would have denoted over Salt Lake City. The resultwould be a multi-century wasteland after the explosion.
A D-bomb explosionmeans that our Civilization will be facing a new multi-century Dark Age.The D-bomb is the Derivatives Market. In theory, derivatives are balancedrisk investments that allow Hedge Funds, banks, insurance companies andothers to profit from the spread created by the bet. The three designproblems with D-bombs are that the risk is usually an either or option thatdoesn't factor in a third alternative. Many bundled derivatives havecomponents that don't represent outside financial instruments that mighthave value after a D-bomb explosion....
The Hedge Fund Headache
Hedge funds > The Hedge Fund Headache
Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
(ContentDesk) September 19, 2005 -- The 'mature' traders strike back: Hedge fund managers seem to get younger from year to year. At the other side of the spectrum you may come across a firm like Triumph. Triumph presently has 19 traders whose average age is 52 years. They are mature, successful and experienced traders with an average of more than 26 years experience in the markets. What happens if they get together to form a multi-strategy hedge fund?The following is an interview with James S.
Moore, Managing Member of TIF Fund Management LLC, the Managing Member of Triumph Investment Master Fund Ltd. (Currently ranked among the top performing International Balanced Multi-Strategy Asset class by Nelson's World's Best Money Managers for 20 and 40 quarter time frames). Interview Questions Include the Following:How does Triumph Fund differ from other hedge funds?Where are hedge funds heading?How did you get started in Hedge Funds?What do you think are the current challenges to hedge...
Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
Hedge funds > Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
Energy Hedge Fund Center Announces New Online Seminar: Investment Opportunities in the Energy & Environmental Value Chain: Hedge Funds, VC and Private Equity
Houston, TX (ContentDesk) March 14, 2006 -- The energy hedge fund center, LLC (EHFC) is to conduct a new online seminar on April 18th, 2006 on Investment opportunities in the energy and environmental value chain: hedge funds, VC and private equity. The seminar will take place at 1pm EDT.Over the last two years, the energy industry has literally been transformed into the hot investment sector. Today, with high and volatile energy commodity prices impacting everyone, energy is in the news headlines 24/7. On a daily basis, new investment opportunities in the energy industry are offered in the form of energy or natural resource-specific mutual funds, electronically traded funds (ETFs), income and royalty trusts, Master Limited Partnerships (MLPs) and, other vehicles. Yet these new vehicles only scratch the surface of the potential returns available in the alternative investment universe via energy and environmental hedge funds.
In this Phone & Web seminar, the authors of the new...
Energy Hedge Fund Center Announces New Online Seminar: Investment Opportunities in the Energy & Environmental Value Chain: Hedge Funds, VC and Private Equity
Hedge funds > Energy Hedge Fund Center Announces New Online Seminar: Investment Opportunities in the Energy & Environmental Value Chain: Hedge Funds, VC and Private Equity
HedgeConnection.com Launched to Revolutionize Hedge Fund Marketing
New York, NY (ContentDesk) October 13, 2005 -- Hedge Connection Inc. ( Hedge Connection ) today announces the formal launch of its web-based investor marketing service, http://www.hedgeconnection.com.
Hedge Connection is the first service available that encourages direct interaction and provides, subject to certain safeguards, unobstructed flow of information between hedge funds and investors. Hedge funds are charged a fixed annual fee to gain direct access to investors with no commission on the back-end.
Qualified investors join for free and gain access to detailed information on hedge fund members.
The HedgeConnection.com dual search engine allows hedge funds to contact a database of qualified investors that match their search criteria, and enables qualified investors to search for hedge funds that match their specific parameters.
There are currently over 450 investors on the site representing...
Hedge funds > HedgeConnection.com Launched to Revolutionize Hedge Fund Marketing
Web Seminar: ?Hedge Funds:The Next Wave in Energy Trading? (Tuesday, October 5, 2004 1:00 pm to 2:15 pm Eastern)
Global Change Associates and Utilipoint have completed the first study on energy hedge funds entitled "Hedge Funds Enter the Energy Trading Space."
The authors of the study have identified over 200 hedge funds active in the energy space and will offer a web seminar to present a concise overview of how hedge funds are impacting trading in energy markets. The entrance of energy hedge funds in commodity trading is new, and they are bringing both liquidity and more price volatility to the global energy markets. Their presence is accelerating the financialization of energy markets. This seminar will be based on the current research of Global Change Associates and Utilipoint International representing the first ground breaking analysis of what hedge funds are doing in the energy space.
Get up to speed in one hour and a quarter on what is really happening in energy markets for oil, gas, power, and coal trading today.
Your instructors are best selling author of What...
Web Seminar: ?Hedge Funds:The Next Wave in Energy Trading? (Tuesday, October 5, 2004 1:00 pm to 2:15 pm Eastern)
Hedge funds > Web Seminar: ?Hedge Funds:The Next Wave in Energy Trading? (Tuesday, October 5, 2004 1:00 pm to 2:15 pm Eastern)
Choose Back Surgery As A Last Resort
Copyright 2006 Robert Gould
For years I have suffered from low back pain. For years I have tried just about everything for the pain except having back surgery. From physical therapy, traction, chiropractors, steroid injections, drug therapy, biofeedback tactics, stretching and anything I could think of to relieve the pain. Through the years of suffering from pain it would have been very easy on several occasions to go under the knife and have back surgery in an attempt to help my...
Hedge funds > Choose Back Surgery As A Last Resort
To Successfully Obtain Business Capital, Every Business Needs A Coach
Foothill Ranch, California (ContentDesk) March 16, 2006 -- BusinessFinance.com has developed an online Business Finance Coach. The Business Finance Coach (www.businessfinance.com/business-finance-coach.htm) guides small business owners or entrepreneurs through the very difficult task of finding the capital they need to start their business. A task at which most business owners fail because they have never been...
Hedge funds financing
Hedge funds > To Successfully Obtain Business Capital, Every Business Needs A Coach
How to Eat Out and Lose Weigh
How to Eat Out and Lose Weight25 Easy & Healthy Tips for Dining Out.By Diners have become more health-conscious the last few years, and now want healthy choices whether eating at home or at their favorite restaurants. Luckily, the restaurant industry has been quick to accommodate the demand, so you'll find you have many options to "eat healthy" these days.Whether you're eating at home or dining out, the same rules for watching your weight apply. You need to eat more vegetables, fruit and whole...
Hedge funds Energy is a Risky Business
Hedge funds > How to Eat Out and Lose Weigh
Celebrity Chef David Burke's New Flavor Sprays are Now Available in Australia
NEW YORK, NY (ContentDesk) February 9, 2006 -- Award-winning chef, author, inventor, restaurateur and entrepreneur, David Burke announced today that his new line of award winning Flavor Spray are now available in Australia. www.flavorspraydiet.com.au. Flavor Spray, which was just named by Time Magazine as one of the Most Amazing Inventions of 2005, are a cleaver mixture of FDA-approved natural flavorings that can be sprayed onto...
Hedge funds
Hedge funds > Celebrity Chef David Burke's New Flavor Sprays are Now Available in Australia
Chew Your Cabbage Twice
Have you noticed how often speakers and lecturers say, "I'm
going to repeat that" or "I'll say that again" or "That's right
? repeat ?" ?
You've thought, "Gee, she sure likes to repeat herself." or,
"Yea, I get it. That's the third time."
Accidental?
Not really!
You see folks, speakers, teachers and trainers know how
human memory retention works: repetition is a valuable tool.
Hedge funds > Chew Your Cabbage Twice
Hedge funds
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