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Fri12152017

Last updateSat, 29 Jul 2017 12am

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Clive Capital Commodity Hedge Fund Shutting Down

Clive Capital, one of the world’s largest commodity hedge funds, with assets under management of $5b at its peak, deploying “directional, long volatility approach” will be closing down at the end of September, returning about $1b of capital to its investors.

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When the Fed hikes the rates…

“Those who cannot learn from history are doomed to repeat it.”  George Santayana (1863-1952).  Let’s see for the past 25 years, using Morningstar data on two benchmarks, Vanguard 500 Index and Vanguard Total Bond Index for stock and bond performance for the years 1988-2013, how the rate movement impact the markets, in particular in 1994 and 2003.

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The Saga of Bond Guru - Jeffrey Gundlach

Jeffrey Gundlach, 53 founder of DoubleLine Capital, was formerly the head of the $9.3 billion TCW Total Return Bond Fund, where he finished in the top 2% of all funds invested in intermediate-term bonds for the 10 years that ended prior to his departure.  He started DoubleLine in 2009 after he lost an internal struggle for leadership at TCW, which fired him and sued for theft of trade secrets.  He countersued, arguing that TCW owed him money.  The suits were settled in 2011.  Barron’s in February 2011 cover story called the “King of Bonds”.  In 2012, he was included in the 50 Most Influential list of Bloomberg Markets Magazine.

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Human Beating Robots Most Since 2008

Computerized systematic funds, also known as “quants”, have grown in popularity since the 1990s and are now more common than the “human”, discretionary method of trading currencies.  Of 43 currency funds tracked by Parker Global, 27 are driven by computer models. They returned an average 10.7% a year since the Stamford, Connecticut-based consulting firm started compiling the data in 1986, compared with 8.6% for discretionary funds,  However, as of June this year, quants made 0.7%, whereas human made 2.3%, beating computer with the biggest margin since 2008.

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What Caused European Sovereign Debt Crisis?

European sovereign debt crisis is the result of three separate but interrelated plots: crushing levels of government debt in some countries, problems in the banking sector and the slow growth in Europe.

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