Alternative Links: The Secretive Business

We start with Khe’s career at Blackrock, where he rose to be one of the youngest MDs at the firm, specializing in quantitative hedge funds. Khe shares his perspective on how the hedge fund landscape has changed and what investors should look for in hedge fund managers in the future.

Quant Hedge Funds and the Fear of Death, with Khe Hy – (Investor Field Guide)

 

Chicago’s high-speed trading industry is so secretive, it’s easy to overlook the worldwide magnet the city has become for the business.

Chicago’s trading muscle gets a boost from overseas – (Crain’s Chicago)

 

 

You see, systematic models like AQR are doing what they’re supposed to be doing – taking “small” losses as they stay in the game. They’re designed to swing at almost every pitch, and lose much less when they lose than win. Think of it like a baseball hitter getting 30 strikes instead of 3. The hits and home runs and count the same, but the strikes are only a tenth of what they usually are. Thing is, you still must get a good pitch to hit every now and then. And systematic programs like AQR just aren’t getting the pitches.

What’s Wrong with AQR? – (RCM’s Attain Alternatives Blog)

 

The state began a probe in 2015 after the company failed to submit to a surprise audit, filings show. Georgia Secretary of State Brian Kemp said in July that he had discovered “multiple irregularities” involving Statim and its hedge fund Arjun.

SEC Probes Hedge Fund That Promises Investors No Losses – (Bloomberg)

 

The hidden costs of trading ETFs may exceed $18 billion a year, according to one expert

The Expensive Ingredient of Cheap ETFs – (Wall Street Journal)

 

 

Bank sees commodity investment flows rising in second quarter

Citi Sees Oil Surging $10 as OPEC Combats Roaring U.S. Shale – (Bloomberg)