Its Friday
Time to be a little bit geeky – if you don’t know who these people are GIYF. And for those who don’t get the cultural reference here is the somewhat forgettable song by Haddaway
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Noise
Once upon a time I used to believe that trading was an information management profession but I have slowly begun to change my opinion. Trading has become a noise management profession – noise is everywhere in trading and its influence is becoming more pronounced as time marches on. When I first became interested in markets…
Do Incentive Fees Signal Skill?
Yeah….no…..maybe….ah…apparently not…. We examine the relation between incentive fees and hedge fund performance. In an industry where information asymmetries (and the consequent risk of agency problems) are severe, the efficacy of such outcomes-based contracting to align investor and manager interests is of fundamental importance to investors. Consistent with theory, we find that the higher a hedge fund’s incentive…
Clock Timers Versus Event Timers
One of the biggest problems people have when they come to trading is the notion of self responsibility, people are so used to abrogating responsibility for their own lives to someone else that they literally do not know how to get into the drivers seat. This poses all sorts of problems because trading as a…
The Mockingbird Next Door: Life With Harper Lee
To Kill a Mockingbird remains one of my favourite books and films. I will regularly ensconce myself on the coach when it comes on. There are many reasons to be grateful for “The Mockingbird Next Door,”Marja Mills’s wonderful memoir of Harper Lee and her sister, and being enticed to re-read “To Kill a Mockingbird” is just one of…
Bubble, Bubble….
There is much talk around the google box that the current move in markets is a sign of an investment bubble. I am not so convinced – the moment markets actually go up people start screaming bubble followed by here comes the crash. Such cries are merely the emotional swings of hormonal market commentators. However,…
How To Blow $9 Billion
AS WITH MANY OF AMERICA’S GREAT FORTUNES, the Stroh family’s story starts with an immigrant: Bernhard Stroh, who arrived in Detroit from Germany in 1850 with $150 and a coveted family recipe for beer. He sold his brews door-to-door in a wheelbarrow. By 1890 his sons, Julius and Bernhard Jr., were shipping beer around the Great…
Why trading volume is tumbling, explained in 5 charts
Interesting set of charts relating to the perceived fall in trading volumes during the recent rally in the US.
A Billionaire Mathematician’s Life of Ferocious Curiosity
James H. Simons likes to play against type. He is a billionaire star of mathematics and private investment who often wins praise for his financial gifts to scientific research and programs to get children hooked on math. But in his Manhattan office, high atop a Fifth Avenue building in the Flatiron district, he’s quick to tell…
LANCE ARMSTRONG IN PURGATORY: THE AFTER-LIFE
If you ever needed any convincing that Lance Armstrong was a sociopath and would have been well suited to working on Wall Street then check out this feature on him.
The Aggregation of Marginal Gains
I came across this chart in this article about how British cycling coach Dave Brailsford turned British cycling into a world powerhouse dominating the last Olympics and producing the last two Tour De France winners. Brailsford set about his task but generating tiny almost imperceptible gains over long period of time . The chart below gives…
Lefsetz: The Tiers
This is from the wonderful Lefsetz Letter that everyone should be subscribed to. Pay particular attention to the paragraph I have highlighted STADIUM ACTS Are not bitching about what everybody else is. Money is not their issue. Everybody wants to be in business with them. The transition in the business is evidenced by the fact…
THE LONGEST RUNNING REPEAT-FOR-FREE TRADING MENTOR PROGRAM IN THE WORLD
Want to be an exceptional trader? Learn from the best. Chris and Louise have found the way to take the guesswork out of share trading.They can teach you how to do this too!
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