Using Veritas to Construct the "Per…

29-04-2017 Hits:93330 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:84568 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:84476 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:89036 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:87522 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:87327 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:58486 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:86861 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:86479 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:86823 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:93123 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:90457 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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In reading the artices below, and my (admittedly smart ass) comments in red font, I don't want anyone to get the impression that I am boasting. We all have our day in the crapper, and I am sure my day is coming (maybe even sometime soon). What I would like to make clear, however, is how valuable and under priced the research subscriptions are - being that they are both well done and void of conflicts of interests. As I stated earlier, anyone who simple acted on the research as it came out and sat on it (absolutely no trading, fancy schmancy algos, or anything of that sort) would have outperformed the top quintile of hedge funds and mutual funds by more than, that is in excess of, a multiple of 3x! I think I'm going to start charging 2 and 30 for the blogLaughing.

 From Bloomberg:

Fortress Investment Group LLC fell 25 percent to a record low after the private-equity and hedge-fund manager halted redemptions from its Drawbridge Global Macro fund, which had lost value this year.

Investors asked to withdraw $3.51 billion by year-end, including the $1.5 billion in redemption notices disclosed last month, the New York-based company said today in a filing with the U.S. Securities and Exchange Commission. Fortress spokeswoman Lilly Donohue declined to comment...

More than 80 firms have liquidated funds, restricted redemptions or segregated assets following a stock-market decline and a credit freeze that started with a housing slump and rising defaults on U.S. subprime mortgages. Hedge funds have posted losses averaging 23 percent this year through Dec. 1, according to Chicago-based Hedge Fund Research Inc.’s HFRX Global Hedge Fund Index. It's not impossible to make money in this market (see below). I was going to launch a hedge fund, but I probably would have received a flurry of redemption requests as well, by those investors who needed to plug the holes made by those funds that lost considerable money, not to mention margin calls. You see, everybody is getting redemption requests, the underperformers (or shall I say the ones that lost money, since absolute performance all around has been pretty poor) and those who actually made money - since they are the ones funding the losses. This brings up another point. Why is the author comparing X fund to Y fund, or why compare to the broad market or any benchmark? The whole idealogy behind hedge funds is absolute risk weighted return. The fact that Joe Fund Manager lost 30% this year does not excuse my fund manager from losing 29%. A loss is a loss. If it was practically unavoidable, I can understand (although we all know that somebody had to make money), but making the return comparison relative to benchmarks in bad times but absolute in good times is hypocritical, to say the least. 

Please click the graph to enlarge to print quality size.  



Fortress said in November its hedge-fund clients asked to pull more than $4.5 billion, or 25 percent of their money, as the company reported its first quarterly loss since going public. The Drawbridge fund had $8 billion as of Sept. 30, and the requested withdrawals amount to about 44 percent of the money pool, said Roger Smith, an analyst with Fox-Pitt Kelton Cochran Caronia Waller USA LLC in New York. Drawbridge lost 12 percent this year, he said.

 and in another Bloomberg article...

D.E. Shaw & Co. LP, the investment firm run by David Shaw, and Farallon Capital Management LLC limited withdrawals by clients, joining more than 80 hedge-fund managers to impose restrictions in the past two months. 

D.E. Shaw, which oversees $36 billion, capped redemptions from its Composite and Oculus funds, said two people familiar with the New York-based company. Farallon, a $30 billion firm based in San Francisco, did the same with its biggest fund after investors asked to get back more than 25 percent of their money.

The firms are two of the biggest to block withdrawals, known as putting up gates, so they aren't forced to liquidate investments at distressed prices to raise cash. New York-based Fortress Investment Group LLC said yesterday it froze an $8 billion fund after getting redemption requests for 40 percent of its assets. Tudor Investment Corp., the Greenwich, Connecticut, firm run by Paul Tudor Jones, locked the $10 billion BVI Global fund last week ahead of plans to split the fund into two. Please click the graph to enlarge to print quality size copy_of_copy_of_blog_chart_with_shaun_updates_part_2_no_money_10809_image001.png“There's no longer the stigma associated with putting up gates or suspending redemptions as it was before this crisis,” said Jaeson Dubrovay, head of the $19 billion hedge-fund group at consulting firm NEPC LLC in Cambridge, Massachusetts. “It's actually being encouraged by some large institutions as a way to protect longer-term investors from those who panic and redeem.” I would fear those who panic as well, but how about those who genuinely need their money back? How about those who geniunely (and accurately) realized the fund manager is in a protracted losing streak? It is not as simple as labeling all withdrawal requests a sign of panic?

Darcy Bradbury, a spokeswoman for D.E. Shaw, and Steve Bruce, a Farallon spokesman, declined to comment.

Industry assets peaked at $1.9 trillion in June, data compiled by Chicago-based Hedge Fund Research Inc. show. Investment losses and withdrawals may shrink that amount by 45 percent by the end of this month, according to estimates by analysts at Morgan Stanley.

Outperforming Peers

The gate on D.E. Shaw's Oculus fund was triggered after the company received redemption requests for more than 8 percent of assets, said the people, who asked not to be identified because the information is private. The fund, which tries to profit from global economic trends, is up about 10 percent this year, compared with the average 16.4 percent decline for the industry through October, Hedge Fund Research reported. Here we go with the benchmarking, again. I know it is a way to compare your self with others to guage your return. The problem is, things get too political and bureacratic, and managers can't invest for the long term. Most hedge fund managers should think like private equity managers, in terms of years, not weeks and months. That is how I conduct my research, and that is how I invest. Granted, I have a modified horizon, due to the volatility, but a large drawdown, or poor performance for a quarter does not faze my investment thesis. Thing are volatile, and theses take time to pan out. If managers were thinking towwards the future, many wouldn't have been caught with all of that MBS sh1t on their books. Come now, we couldn't see that coming?

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Investors asked to redeem more than 6 percent of D.E. Shaw's Composite fund, which pursues multiple investment strategies and has lost 4 percent.

Even hedge funds that are outperforming peers have been hit by redemptions because they are a more ready source for cash for investors. Shaw, 57, started his firm in 1988 and has 1,600 employees worldwide.


The Farallon fund fell 23.8 percent through October, and is headed for the first annual loss in its 22-year history. Steyer, 51, invests in assets from stocks to distressed debt and real estate. His main fund climbed at an average annual rate of 14.6 percent for the past 22 years, compared with about 9 percent for the Standard & Poor's 500 Index.

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  From a risk weighted perspective, my proprietary account has pulled even farther away from both the broad market and ALL of the BarclayHedge fund indices, far away. I have assumed much less risk to get an average of over 10x the return.  Please click the graph to enlarge to print quality size.  

Then theres: Citadel Funds Said to Lose 13% in November, Bringing Year's Decline to 47%
I would comment, but I think you get the message... Some of the Citadel funds tied to market making are up 40% this year. The macro and stock funds are avoiding losses as well, according to Bloomberg.
More on the research and free samples can be found here, and the subscription link is here.
Next I will comment on how our dear government seems quite incapable of looking past trying to save the ole' boy network.