ad astra per alia porci


Notes from Super Cash: The New Hedge Fund Capitalism
April 22, 2007, 1:17 am
Filed under: investments/finance/economics

Ideas and notes taken off Super Cash: The New Hedge Fund Capitalism by James Altucher. Not all the ideas are reflected here, only those that I feel are relevant and of further interest. A fascinating book on the various unconventional techniques used by various hedge funds to earn returns.

Various Hedge Fund Strategies

  • Hard money real estate lending – lending money to credit-impaired customers using real estate as collateral.
  • Taxi medallions in NYC – buying and selling limited issued medallions.
  • Acting as an alternative lender to banks – many banks avoid less credible sources.
  • Activism – buying a substantial stake in an inefficiently runned, undervalued business and shaking up management.
  • Buying delinquent credit card debt

Observe Billionaires and Managers

  • Whenever they take a substantial stake in a business, they have to fill a SEC report.
  • Altucher follows billionaire investors like Mark Cuban, Michael Dell, Bill Gates, Bruce Covner, George Soros, Peter Lynch and Peter Kellog, among others.
  • To keep track of their filings, use websites like www.sec.gov and www.edgar-online.com.
  • Specifically, look for Form 4 filings (significant changes in holdings), SC-13D (needs to be filled within 5 days of holding more than 5% of a company) and 13F-HR (list of all the holdings of an institution that needs to be filed within 45 days of the close of a quarter).
  • Some billionaires operate under a family office or company under a different name.

DIY Closed-End Fund Arbitrage

  • CEFs sometimes trade at a discount to the NAV.
  • Many pays large dividends.
  • Go to www.etfconnect.com
  • List all CEFs by discount, premium, TD return etc.
  • Look out for CEFs that are undervalued.
  • Another resource is www.cefa.com

Short-Selling

  • Basic economics is bad
  • A stock can fall to a value of 0 at most, but the upside is unlimited.

Classic Investment Reading and New Media Resources

Supermoney by Adam Smith

The Funny Money Game by Andrew Tobias

The Essential Drucker by Peter Drucker

Seeking Alpha – www.seekingalpha.com

The J Curve – jurvetson.blogspot.com

Securities Litigation Watch – slw.issproxy.com

Footnoted.org

Infectious Greed – www.paul.kedrosky.com

Blog Maverick – www.blogmaverick.com

Random Roger’s Big Picture – randomroger.blogspot.com

Where to Find the Data

Daily market data: Yahoo! Finance, QCharts at quote.com, www.wealth-lab.com

Economic data: The Fred II database at St. Louis Federal Reserve site (www.stlouisfed.org)

Hedge fund data: www.iasg.com, www.hedgefund.net, www.cogenthedge.com

Market heuristics: www.globalfindata.com

Business cycles: www.nber.org/cycles.html

IPO data: www.iporesources.org, ipodata.com

Futures data: www.turtletrader.com

Index changes: www.nasdaq.com/reference/nasdaq_100_changes.xls, www.cob.vt.edu/finance/quotes/articles/priceresponse.pdf, www.russell.com/US/Indexes/US/reconstitution/default.asp

Bankruptcies: www.bankruptcydata.com/researchcenter2.htm, www.nasdaqtrader.com/asp/TradeHaltShowPage.asp

Advertisements

Leave a Comment so far
Leave a comment



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: