The SAC Capital drama has to end at some point, the sooner the better for some people. I can't think of a more dramatic ending that an old-fashioned courtroom showdown. That's where things appear to be heading now.
Ever since the Bernard Madoff fiasco erupted, the SEC has been stuck with a less than flattering reputation, one that it has fought hard to combat. So anytime it finds itself involved in a high profile trial or case, the stakes are huge, as it desperately needs a string of big victories.
As expected, the SEC, as directed by the JOBS Act, did away with an 80-year-old ban on advertising by alternative investment vehicles and start-ups, a move that over the long-term might have a lasting effect on the way issuers raise private funds. It is not expected to have a major impact immediately, however. Certainly, hedge funds and private equity funds will take a go-slow stance in terms of figuring out whether mass advertising makes sense for them.
Back in the residential real estate boom years, appraisers made great money, as the margins were high. But these days, it's all about expense management, and the Charlotte-based giant has made the decision to locate some of its home value appraisal staff in India, according to Bloomberg.
The best stories, frankly, are the ones that are only told privately. When it comes to the tales that are told for public consumption, you often get sanitized versions that serve a specific PR functions. You might get the truth, but only certain versions of it. All of which makes The Buyside, a memoir by former hedge fund trader Turney Duff, a valuable, intensely personal look into the hedge fund industry.
If you thought that the financial crisis would force Goldman Sachs' CEO out of his job, you were sorely mistaken. He's way too stubborn for that. There's no way he would allow himself to leave under the impression he was forced out. The ignominy would be too much. To his credit, Blankfein weathered the storms and has engineered a recovery that once again has positioned his bank as one of the top two investment banks and trading outfits on Wall Street.
The hedge fund industry has been eating humble pie for the better part of the last 10 years. Funds in aggregate have underperformed the stock market over that period. If you look at just the period that coincides with the financial crisis, the average hedge fund fared well, posting much smaller losses than the main stock indexes. Of course, that's how it's supposed to be. And performance over that period doesn't count for much now.
The idea of a looming Great Rotation out of traditional fixed-income products has been talked about at length in the asset management industry. You can count management consultants Casey, Quirk & Associates among those who believe the rotation is real.
The headline news out of Preqin's recent Hedge Fund Spotlight was that long/short hedge funds are faring well, outperforming all other strategies in the first quarter and finding favor with more institutional investors.