What I’m Reading

Feeling bullish or bearish today? Emotions have ruined many well intentioned investment plans. . .
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What’s up with all the biotech hedge funds closing their doors? Merlin Biomed Group, Cooper Hill Partners, and Panacea Asset Management are all closing shop. A bullish contrarian sign?
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Boston based HarbourVest, one of the biggest private equity fund of funds, is planning a $400 million private equity FOF launch. And, you guessed it, is not going to be listed in the US, but in Amsterdam. Hopefully the US will pay attention and adopt a Ucits II style legislation. Maybe actively managed ETFs will save the day.
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What do all the hedge fund blowups have in common? Here is an article on Sowood’s Long Hot Summer. . .

“Within weeks, Sowood’s positions amounted to as much as 12 times its investment capital, well above most rivals, according to investors in the fund. Sowood relied on a group of banks to lend money for its trades, using certain Sowood investments as collateral.”

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