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#11
02-06-2007, 02:00 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
What products did you or your traders trade (CDS, CDO, Futures, FX, Converts, etc)? What strategies did you or your traders employ (L/S, Convert Arb, Risk Arb, etc)? [/ QUOTE ] For most of our history, we were global long/short equity. Truly global - half of our assets were outside us, and in places like Brazil, Tokyo, Istanbul. In later years we added others...credit default swaps and some quants. We did very little with debt and no arb. 
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#12
02-06-2007, 02:01 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
What qualifies you to make this topic? [/ QUOTE ] Experience.
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#13
02-06-2007, 02:02 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
[ QUOTE ] How much would you pay for $1 of taxable (at the statutory corporate tax rate in America) income? [/ QUOTE ] Do you mean, for example what would I pay for $1 of EPS in a stock? If that is your question, its entirely tied up in growth rates and steadiness/riskiness of the income stream. Again, there is no way to answer that question without more detail. [/ QUOTE ] No. Maybe a more concrete example would be easier. Let's say you work at McDonald's. You man the fly-a-lator Monday-Friday 3 pm-11 pm. For your services you are compensated $300/week. The last pay week of the year ends on December 24th and your boss, feeling charitable and filled with Christmas cheer, offers you a deal; he says that he will give you $1 more on your paycheck if you offer him a fair price. How much are you willing to offer before you would rather not have the dollar?
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#14
02-06-2007, 02:05 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
[ QUOTE ] [ QUOTE ] How much would you pay for $1 of taxable (at the statutory corporate tax rate in America) income? [/ QUOTE ] Do you mean, for example what would I pay for $1 of EPS in a stock? If that is your question, its entirely tied up in growth rates and steadiness/riskiness of the income stream. Again, there is no way to answer that question without more detail. [/ QUOTE ] No. Maybe a more concrete example would be easier. Let's say you work at McDonald's. You man the fly-a-lator Monday-Friday 3 pm-11 pm. For your services you are compensated $300/week. The last pay week of the year ends on December 24th and your boss, feeling charitable and filled with Christmas cheer, offers you a deal; he says that he will give you $1 more on your paycheck if you offer him a fair price. How much are you willing to offer before you would rather not have the dollar? [/ QUOTE ] This sounds like one of those Sklanky questions that only people who become professors care about...but I still don't get it. $1 of pretax income to me is worth $0.65. I don't understand what the criteria are for him accepting my offer? If he accepts any offer, $0.01. If he accepts only offers that almost close the gap, $0.64. I am sure these are not the answers you are intersted in, but I dont understand the quetsion.
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#15
02-06-2007, 02:11 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
[ QUOTE ] What qualifies you to make this topic? [/ QUOTE ] Experience. [/ QUOTE ] Well apparently. Care to elaborate?
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#16
02-06-2007, 02:16 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
[ QUOTE ] [ QUOTE ] What qualifies you to make this topic? [/ QUOTE ] Experience. [/ QUOTE ] Well apparently. Care to elaborate? [/ QUOTE ] A decade of hard core $ mgmt experience and a good track record. MBA, FWIW. Original employee of a large hedge fund, material role in hiring pretty much everyone who ultimately worked there.
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#17
02-06-2007, 02:25 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
What do funds you've been around think of prop traders? Scummy or hireable?
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#18
02-06-2007, 03:07 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
What do funds you've been around think of prop traders? Scummy or hireable? [/ QUOTE ] I always had the view they could not make money. We finally tried it, more than once, and confirmed the view. We would ask them how they made money, they would spout some mumbo jumbo about flow or patterns or trend. then they would come in and break even, just like I thought they would.
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#20
02-06-2007, 03:56 AM
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Re: Hedge funds and the stock market - ask me anything til i get bored
[ QUOTE ]
[ QUOTE ] What products did you or your traders trade (CDS, CDO, Futures, FX, Converts, etc)? What strategies did you or your traders employ (L/S, Convert Arb, Risk Arb, etc)? [/ QUOTE ] For most of our history, we were global long/short equity. Truly global - half of our assets were outside us, and in places like Brazil, Tokyo, Istanbul. In later years we added others...credit default swaps and some quants. We did very little with debt and no arb. [/ QUOTE ] were the quants dealing with the L/S portfolio or the CDS/etc expansion?
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