THE FINTAG NEWSLETTER
@ Thu 26 June 2008 : GMT

FINTAG COMMENT

Key person dependency.

The problem with hedge funds is that they are run by people. People, who are critical to its success. Just like this blog. If I go on a 48 hour bender entertaining clients, you, my readers, start feeling vulnerable and look at redeeming from fintag.

Let's take Quant funds for example. They are computer programs written in c#, VB or Java and replace the key person dependency problem. However, quant funds have been behaving badly and like equity long short are not where your money should be right now. Personally I would recommend [Editor: No recommendations, sorry] CTA, Global Macro (like me) or later on this year event driven strategies like equity arbitrage which benefit from drifting markets.

Contrary to popular belief, I do not work for, or am a principal at Marshall Wace despite being in Asia at the same time as them. So far we have not clashed in the same clubs or fought after the same entertainment. My thumbs maybe numb [Editor: uh?], my sleep deprived eyes red and my aching dance limbs sodden but my brain is alert as ever. It is a shame that the media is losing its way as the key stories I am hearing repeated over and over again are not being reported.

Maybe I have some sort of illness. Take this picture. It is a Japanese loo. It has hundreds of buttons and although the objective is flush away my alcohol saturated urine, I don't know where to start. A bit like journalists trying to understand why banks like Barclays continue to lie that all is fine when they needed some help from overseas.

Order will be resumed next week so until then, enjoy your shorting.

For those who thought I was doing a Sammy Israel, I am sorry to disappoint.

PRIME BROKERS FACE CHANGING LANDSCAPE

icfaFintag says
...and they are going to make even more money out of it all. I was told yesterday that Goldman earned USD100m from prime broking GLG. Is this true? Probably.

MARSHALL WACE IN HONG KONG JV, PLANS ASIAN HEDGE FUNDS

finalternativesFintag says
Unless they can conform to Basle 2 legislation, this will not launch. It is true 5 years ago there were a handful of Asian managers and today there are over 400. The problem is most of them are pretty crap. Good luck to MW especially as Typhoon ridden and lung burning Hong Kong is not what it used to be.

US FEDERAL RESERVE KEEPS BENCHMARK FEDERAL FUNDS RATE ON HOLD AT 2%

finfactsFintag says
Inflation threats persist so you choose to hold rates. So much for long term economic planning then.

INVESTORS' £4.5BN DEAL TO SHORE UP CAPITAL AT BARCLAYS

independentFintag says
Bob Diamond told me that all was fine. I now it turns out he lied. Never trust an incompetent bank.



financial news says " Banks and hedge funds facing billions in losses on European rates bet "

KINETIC'S SHRIMPTON SAYS U.K. BANKS NOW IN `DIFFICULT PERIODS'

bloombergFintag says
A bit early in my book but the early birds are sitting on the fence.

HEDGE FUNDS DISCLOSE THEIR SHORT POSITIONS IN JOHNSTON PRESS

bloombergFintag says
This is getting a bit boring now. Can I get off here?