Archives by date

You are browsing the site archives by date.

Update on Short Ten Year / Taper Trade and New Gold / Currency Trade In Works

This article addresses the yield curve trade that recommended a short position in the Ten Year Note going into the Federal Reserve taper announcement and also tees up a new relative value trade in gold / silver vs a small [...]

Trade Recommendation: Predicting the Taper Wasn’t The Key Component of This Trade

The goal of this article is to explain the volatility yield curve trade to a certain degree.  I know this might sound odd, but the trade was not entirely predicated on accurately predicting the taper even thought that is what [...]

Don’t Be Surprised By Clear Taper Talk From Bernanke For Reasons Other Than Jobs Numbers

On the eve of the Federal Reserve Chairman Ben Bernanke presiding his last Federal Open Market Committee meeting, which wraps up this Wednesday with a press conference, a growing number of hedge fund traders who operate along the yield curve [...]

Yield Curve Trade Recommendation: Short Ten Year Note, Expect Rising Rates (Long Put Volatility / Short Call Volatility)

Expect interest rates to rise   Buy Five Debit Spreads: Buy: 120 June 2014 Put Option (0’59) Sell: 118 June 2014 Put Option (0’30) Purchase spread differential near 0’31 (assume 1 tick transaction cost / slippage on each side of [...]

Comparing CTA Indexes

Comparing CTA Indexes

In their recent white paper, “A Comparison of CTA Indexes,” Red Rock Capital principals Thomas N. Rollinger and Scott T. Hoffman compare the major CTA indexes.  Below is an excerpt of the paper’s primary thesis.  To view the entire paper, [...]

Managed Futures Indices Punch Into the Black as Fed Taper Appears Imminent

Major managed futures indexes punched into the black in November, with the Newedge CTA index up 1.62% following a 1.21% gain in October. Markets currently trending to the upside include the Dax, S&P 500, Japanese 10 year Government Bond, British [...]

Blackstone / Codere CDS Event Highlighted on Daily Show Exposes Larger Economic Issues

A recent credit default swap (CDS) payout event, humorously highlighted by The Daily Show, actually opens a much larger issue, pointing to a core problem with unregulated OTC swaps whose notional value exceeds $600 trillion and dwarfs the world GDP [...]

Outgoing CFTC Commissioner Bart Chilton Makes Strong Statements Regardings

The Commodity Futures Trading Commission has been at the center of a fight to regulate the derivatives that were at the center of the 2008 crash.  This fight took center stage when CFTC Commissioner Bart Chilton recently gave what is [...]

The shortfalls of Venture Capital: Why VC has to become a scientific investment discipline

By John Bhakdi When we think about Venture Capital (VC), we think about great entrepreneurs, secret deals, and the adrenaline rush of hitting the “next big thing”. Silicon Valley is in many respects the financial cousin of Hollywood: full of [...]

A CTA High on My Watchlist: Protec

Protec Energy is a fundamental relative value CTA who has generated consistent performance through a variety of difficult market environments for managed futures trend followers – 47% in 2010; 63% in 2011; 11% in 2012 and 17% year to date.  [...]