YanLu, David K. Musto and Sugata ray published a paper under the heading “Alternative Marketing for Alternative Investments” . Hedge funds are currently banned from advertising. New legislation contemplates lifting this ban, thus raising the question of whether the ban is good policy. The Paper address this question by analyzing a form of indirect hedge fund advertising that already exists: advertising by institutions running both hedge funds and mutual funds, where the ads promote either the overall institution or specific mutual fund products. The Paper find that institutions increase such advertising after hedge fund flows sag, and that such advertising predicts subsequent increased inflows for hedge funds. View full article »
Tag Archive: business
accumulate few of them from various sources:
Guest Post : By Green
When the going gets tough, the tough get buying. The tweaked version of that hard-worn phrase could be an accurate way of describing some of those shrewd investors who buy shares in a downturn in the hope or belief that they will bounce back. Great successes can be achieved in this way. However, what do you do when the markets are on an upturn as the global indexes have signaled for close to five years in a row? Even when the studious foresee a continued momentum, there is a natural trepidation that the glass ceiling may suddenly bounce that trajectory.
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Like other investing related terms, deep value investing is a much used, but perhaps less well understood term. So, first and foremost we were interested to learn more about what deep value investing really is.one of the many keen observations from Chris is that deep value investing requires strict price discipline on the part of the investor.
But, of course, it doesn’t stop there. Like other investing styles, deep value investing is as much art as it is science. View full article »
The 10yr Treasury is still a decent risk free rate, but the U.S.’s sovereign debt load will soon match Greece‘s. It may already exceed that level if you count the unfunded liabilities of entitlement programs. View full article »
As all of you must be aware of that the field of behavioral finance has helped us to understand that we don’t always make rational investment decisions.We often make poor decisions because of our biases. And the View full article »
Given the lameness of the bible of psychological diagnostics, the DSM, it’s pretty easy for the lay public to play armchair
psychologist, particularly in the realm of organizational behavior. The Financial Times supplies an unadulterated dose tonight in the form of an article titled, Call in the nerds – finance is no place for extroverts.
Here’s the premise:
There is a compelling body of evidence suggesting that the people most likely to go into the riskier areas of financial services are precisely those least suited to judging risk. Susan Cain’s recently published book Quiet cites a series of studies that suggest that extroverts tend to be attracted to the high-reward environments of investment banking, deals and trading. And, troublingly, these outgoing people also tend to be less effective at balancing opportunity and risk than some of their more introverted peers.
Warren buffet: A good business that can be purchased for less than the discounted value of its future earnings.
Benjamin Graham: A company that can be purchased for substantially less than its intrinsic value.
Some other examples are: View full article »