Hedge Funds Still Off

by berrygerry 5 Replies latest watchtower scandals

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  berrygerry

  Did the investment guru(s) at Bethel pick the wrong Fund Manager, and hence the big need for cash?

  Laggner refers to companies like Valeant, SunEdison and Micron Technology as hedge fund “hotels,” where you check in but can’t check out.

  “I mean they can’t get out because they are the market,” Laggner said. “When they all try to get out, the stock collapses.”

  Valeant is a classic example of a hedge fund hotel in that it has dropped from a high of $260 a share to the $100 range as the stock was obliterated by sellers. Shares of SunEdison, which was a popular solar energy play for hedge funds, have dropped from $31 to $6. Micron Technology’s stock price has been chainsawed in half.

  It will be interesting to see whether a significant portion of hedge fund clients start withdrawing money from the industry. With some of the most prestigious hedge funds down double digits this year, net cash inflows into the industry slowed a little in the third quarter.

  http://www.dallasnews.com/business/columnists/will-deener/20151220-deener-hedge-fund-investors-paying-a-heavy-price.ece
  
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  Nex2go

  I'm new here…as in 15 minuets old. When I was 18 and fresh out of High School, I took the plunge and was dipped 44 years ago and then walked away in under a year. So…I have no idea of whats been going on with the Big Boys in Brooklyn. Am I to think that the JW.org Fellows have been rolling the dice and lost the "briefcase of their backs???"
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  paul from cleveland

  I'm only guessing but probably what happened is they panicked in the market crash of 2007 through 2009 and got out at the bottom and lost a ton of money. Then they decided they wouldn't make that mistake again and invested in midstream oil pipeline MLP funds which were considered very safe before the crash in oil prices. I remember reading somewhere that they are holding a lot of energy funds.
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  Nex2go

  I would have thought that investing in worldly markets would be taking part in the world and therefore an enemy of Jehovah? I guess I was wrong all this time…….

  Thanks
  
• 

  berrygerry

  Aug 15, 1992 WT - Have You Counted the Cost?
  

  In our time, inflation, stock-market declines, bank failures, and so forth, have caused the ruin of many who put their trust solely in material riches.
  
• 

  berrygerry

  I would have thought that investing in worldly markets would be taking part in the world and therefore an enemy of Jehovah? I guess I was wrong all this time…….

  They "hedged" against getting caught as investors with this writing (Oct 8, 2000 Awake):

  A Corporate Lottery?
  In view of the risks associated with the stock market, is buying stock the same as gambling? A measure of risk is involved in nearly all financial investments. Some people buy real estate, not knowing if the value of a property will increase or decrease over time. Others deposit their money in a bank, trusting that their savings will be secure. While the stock market is more complicated, simply put, one who invests in stocks buys the shares of a company in the hope that the enterprise will prosper and the stocks will increase in value.
  Such an investment differs from gambling because the stockholder has purchased part of a company. These shares may be sold to another person or saved in the hope of future growth. This cannot be said of a person who bets money at a casino or on a game of chance. Against the odds, the gambler seeks to predict an uncertain outcome and win the loser or losers’ stakes.
  How much risk should an investor accept? That is up to each individual to decide. Of course, it is not prudent to risk more money on an investment than one is willing to lose.