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: Investing
Guest post by : Green
The ability to understand and manipulate economic markets for financial gain is a skill that has been watered down over
the years. It seems these days that almost everyone thinks they are an expert in stock and shares, Forex or commodities. The big crash of 2008 and the ensuing volatility in a number of key markets have been refreshing in so much as it really separated the masters from the mice in market trading.
Identifying Trends
Those who have managed to continue to make money during these hard times are the quintessential trend spotters. However in this case they are not so much spotting an individual trend, more the changing methods of how to invest in the stock market. View full article »
The crisis has given the birth to new jargon’s and terminologies in the world of financial market, I had tried to
accumulate few of them from various sources:
accumulate few of them from various sources:
- [h]ypothecation is when a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral but is “hypothetically” controlled by the creditor, who has a right to seize possession if the borrower defaults.
In the U.S., this legal right takes the form of a lien and in the UK generally in the form of a legal charge. A simple example of a is a mortgage, in which a borrower legally owns the home, but the bank holds a right to take possession of the property if the borrower should default. View full article »
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.
View full article »
Recently Chris White of Green-stone Capital Management Partners shared his views on the topic, I thought of jotting and 
sharing some points which I found interesting to share.
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 »
History shows that mutual fund investors generally increase inflows after observing periods of strong performance. They
buy at high prices when future expected returns are lower, and they sell after observing periods of poor performance when future expected returns are now higher.
This results in what author Carl Richards called the “behavior gap,” in which investor returns are well below the returns of the funds in which they invest. Perhaps with this observation in mind, Warren Buffett once said, “The most important quality for an investor is temperament, not intellect.” View full article »
As I did a story few days back When to sell and When to buy ? trying to recollect the some book rules for Investments
that holds true in many adverse scenarios.
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 »
Warren buffet: A good business that can be purchased for less than the discounted value of its future earnings.
George Soros: An investment that can be purchased (or sold) prior to a reflexive shift in market psychology/fundamentals that will change its perceived value substantially.
Benjamin Graham: A company that can be purchased for substantially less than its intrinsic value.
Some other examples are: View full article »
Binary options are investment products taking the Internet by storm. If you are looking for ways to make money online or for new financial products, then you probably saw advertisements for binaries, including from adsense as they pop up everywhere. But what are exactly these binary options and are there for anyone?
To put it simply, binary options are equivalent to taking tailor-made bets on financial markets. Or not to sound too much like gamblers, let’s say they let you make predictions about future prices. Do you think gold will go up today? Then buy a one day call binary option on gold. If you are correct you can make a 70 to 85% profit. But if you are incorrect, and this is a big ‘but’ you will lose 100% of your option. View full article »
This is a nice summary of the flaws in many mutual funds published on Market Watch. Too many mutual funds are simply
index funds disguised as something else. And most of the rest are simply attempts to market a product that isn’t designed to actually add value (but sounds fancy enough to accumulate assets). If you missed John Bogle’s discussion on the flaws in the mutual fund industry you should watch it here.
The 10 things via MarketWatch:
1. “Cheap funds often outperform pricey ones.”
2. “We can’t beat the market.”
3. “When skill fails, we just double (or quintuple) our odds.”
4. “People aren’t buying our product…” View full article »
