Just what is Arbitrage Investment??
Just what is Arbitrage Investment?By ? 2005In the simplest of terms, Arbitrage means to exploit price differential.Usually it meant looking at differing sources of an investment, and if there was a price difference between Source A and Source B - then the investor / dealer / broker / manager would buy from the lower priced source, and sell on the higher priced source.Example:-The price of Stock ABC was $20 per share on Exchange XYZThe price of the same Stock ABC on another Exchange 123 - was $15The dealer would buy the stock from Exchange 123 for $15 - then sell on Exchange XYZ for $20 - making $5 per share profit (minus costs).Typically the price differential was very small - and trading had to be extremely quick and liquid - otherwise the markets could go against you in a very short time.Ten years ago Arbitrage was more commonplace than it is today - for a number of reasons.Nowadays, Arbitrage still exists, but either in limited formats and availability as direct arbitrage, or more commonly in Hedge Funds.Hedge Funds can have Arbitrage as one of their investment methodologies / strategies - and you will find that many of the past Arbitrage Managers have switched across to Hedge Funds.Even after the LTCM (Long Term Capital Management) scandal / fiasco a few years ago - Hedge Funds continue to grow, and today are the biggest and fastest growing investment style in the World.This doesn't mean that Arbitrage is dead - as it can be part of Hedge Funds. There are still some direct / explicit Arbitrage Funds available in the World.Most of these concentrate on M&A Arbitrage (Mergers and Acquisitions) - or more usually Mergers.The manager will actively seek companies which have been targeted as potentials for takeover, and buy into that company, in the hope the M&A activity will drive up the price.This method is often enhanced by the use of leveraging (gearing up / borrowing) (remember LTCM?) - and sometimes using Derivative Structures such as Options - or hedging methods such as selling short.Depending on the structure, methodology, management style, leveraging etc., the potential rewards can be substantial, but so can the risks.Not all Arbitrage investments are the same - just like any other asset class, I would strongly suggest that anyone considering this should perform their own Due Diligence and seek professional advice.One very common place where Arbitrage happens every day - by people just like you and me..... is eBay! Sellers are locating items for sale from sources which may sell them very cheaply (flee-markets, garage sales etc.) and then selling them online for a tidy little profit.These people are exploiting the price differential - arbitrage - and there's nothing wrong with that!! It's all about ?Supply and Demand' - but that's another story!(the information contained herein is for information purposes only and should NOT be considered as advice or recommendation relating to the purchase or sale of any investment)..
An article by Gary DurkinFounder of the Internet Advice Center?http://www.InternetAdviceCenter.com? Copyright 2005 - All Rights Reserved worldwide.You are free to distribute this article, providing it remains unchanged and with the resource / bio box attached.THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING!
Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Smart financial journalists occasionally rat out fund managers for not educating the public in this regard. When this happens the mutual fund managers make a feeble attempt at self defense by pointing to something called the 5% rule. This rule says that for a fund to market itself as diversified it cannot have more than 5% of 75% of the funds total assets in a single stock.
In other words, a fund can have 25% of its holdings in a single stock, but the remaining 75% must follow the 5% rule. The 5% rule was created by the Investment Company Act Requirement. Fund managers claim that this hampers their performance instead of admitting that they are in the business just to clip you for high fees while the mutual fund under-performs the general market. The truth...
THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING!
Hedge funds > THE BIG SECRET THE MUTUAL FUNDS DON?T WANT YOU TO KNOW?INDEXING!
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
First Energy Hedge Fund Directory Now Available
Global Change Associates and Utilipoint International announce the completion of the first comprehensive study on energy hedge funds.
Additionally, the two companies have prepared the first directory of hedge funds active in energy with over 200 listings.
This electronic directory will be updated monthly as new funds continue to enter the market. Energy hedge funds are relatively new entrants into energy trading markets and are replacing the liquidity lost when Enron and other energy merchants left the market over the past 3 years. The funds trade crude oil on both the NYMEX and IPE as well as the OTC energy derivatives markets.
Similarly, they trade natural gas on both futures exchanges and the North American OTC markets. To round out their participation, they trade both gasoline and heating oil on NYMEX and gasoil on the IPE.The Directory, "Hedge Funds in Energy" is available as a Utilipoint Infogrid available on the company's website at
First Energy Hedge Fund Directory Now Available
Hedge funds > First Energy Hedge Fund Directory Now Available
Hedge Funds Extend Gains Through Fifth Month: Cogent Dynamic Averages Show Hedge Funds Up 1.9% in March 2006
Fairfield, CT (ContentDesk) April 17, 2006 -- Cogent Investment Research LLC, the operator of the free CogentHedge online alternative investment information and performance analysis resource for investment professionals worldwide (www.cogenthedge.com), reports that as of April 17, 2006, and with nearly 3000 entities now reporting results for March 2006, the Cogent Dynamic Averages for the major investment strategy classifications are as follows:All Funds:
March: 1.897%
Year to Date: 5.282%
Full Year 2005: 8.888%Single-manager ex futures funds:
March: 1.849%
Year to Date: 5.682%
Full Year 2005: 10.724%All Single-manager funds:
March: 1.944%
Year to Date: 5.423%
Full Year 2005: 9.957%Arbitrage strategies:
March: 1.191%
Year to Date: 4.087%
Full Year 2005: 5.212%Event-driven strategies:
March: 2.236%
Year to...
Hedge funds > Hedge Funds Extend Gains Through Fifth Month: Cogent Dynamic Averages Show Hedge Funds Up 1.9% in March 2006
Wall Street Green Trading Summit Announced
New York (ContentDesk) January 12, 2006 -- The Wall Street Green Trading Summit has been announced for April 4 and 5 at Bloomberg headquarters in New York. The conference covers carbon trading, renewable energy trading and emissions trading. Conference producers Hedge Connection and Global Change Associates expect over 300 live attendees. The conference media partner this year is Bloomberg LP.This conference is the fifth in a series of green trading summits and is the only global conference to cover emissions, renewable energy, and megawatt (energy efficiency) trading. This triple convergence of markets was defined by green trading creator Peter Fusaro four years ago.
With carbon trading poised to grow globally into a $3 trillion global market in 20 years, there is more interest in green trading solutions to pollution than ever before.In a time of sustained high energy prices, clean technology is poised to accelerate market penetration, and in recognition of this trend, this years...
Wall Street Green Trading Summit Announced
Hedge funds > Wall Street Green Trading Summit Announced
New Energy Hedge Fund Center Online Seminar Announced ?Fundamentals of Energy Hedge Funds?
The Energy Hedge Fund Center (EHFC ? www.energyhedgefunds.com), the leading online source for news and information on hedge fund activities in the energy industry, has announced that its staff will be conducting an online seminar on "Fundamentals of Energy Hedge Funds" on March 15th, 1pm EST.
The online seminar will be conducted by EHFC Director's and co-authors of the first two comprehensive reports on energy hedge funds, Dr. Gary M. Vasey and Mr. Peter C.
Fusaro. They will share some of their latest research on energy hedge funds."Oil prices continue at record levels and there remains speculation in the media regarding the role played by hedge funds and other speculators," reports Dr. Gary M. Vasey, who is VP Trading & Risk Management Practice for energy industry analysis and consulting firm UtiliPoint International, Inc.
"Our online seminar will explain what an energy hedge fund is...
Hedge funds > New Energy Hedge Fund Center Online Seminar Announced ?Fundamentals of Energy Hedge Funds?
Hedge funds
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