New University of British Columbia research shows that – contrary to popular opinion – hedge funds have a positive influence when investing in U.S. companies filing for Chapter 11 bankruptcy.
The study, co-authored by Sauder School of Business finance Prof. Kai Li, reveals that when a hedge fund invests in a distressed company, other creditors in the transaction fare better and there is a greater chance a company will emerge from bankruptcy.
“It’s a common view in the...

By Attorney Hannah M. Terhune, JD, LLM (Taxation)
2012 © Email: hterhune@capitalmanagementservicesgroup.com   Telephone:  (307) 213-4732
Creating a hedge fund to protect and manage your assets or the assets of others for a fee is a practical way to earn a living. Successful hedge funds continue to attract the wealthy, the working not-so-wealthy, businesses, and pension funds looking for better investment options.  Despite recent law changes,...

Via AllAboutAlpha.com comes news of the fifth annual global survey of institutional hedge fund investors, and the second of two reports by Greenwich Associates and SEI on the shifting hedge fund landscape.
Part one, titled Institutions Put Fund Managers to the Test, focussed on current trends while the second, The New Dynamics of Hedge Fund Competitiveness, looks at evolving standards beyond portfolio transparency.
Key Findings
PERFORMANCE IS JOB #1. More than one in four respondents named...

Yesterday was a very enjoyable day at the London School of Economics Alternative Investment Conference. The focus of the day was hedge funds (as opposed to Private Equity which is happening today) and all in all I have to conclude that for students and young professionals with an interest in fund management this is definitely worth making an application for this time next year.
The speakers I saw were all pretty good and in a couple of cases brilliant; the venue and facilities were top-notch,...

All About Alpha has an interesting post discussing a brand new paper by Godfrey Cadogan titled: Trading Rules Over Fundamentals: A Stock Price Formula for High Frequency Trading, Bubbles and Crashes.
Cadogan writes:

In this paper we present a simple closed form stock price formula, which captures empirical regularities of high frequency trading (HFT), based on two factors: (1) exposure to hedge factor; and (2) hedge factor volatility. Thus, the parsimonious formula is not based on...