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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (57063)	12/9/2004 9:04:50 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

stop talking sexy :0) I am guessing 10:1 is the norm, and +++ a few standard deviations is the often enough. I look at the entirety of USA financial economy as one great big hedge fund, comprised, in turn, of other hedge funds, and GE, GM, F, FNM, JPM, etc, same difference. Chugs, Jay

To: Taikun who wrote (57063)	12/10/2004 12:16:53 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

Where are the hedge fund blow-ups ? Hedge funds and their prime brokers are using better means of risk calculation. They used to use variations for Value at Risk. Now they stress test portfolios for various combinations of events, assuming multiple events. There's a lot more awareness of kurtosis - fat tail distributions of events. After LTCM, Victor Niederoff's blow up, the 9/11 attacks, hedge funds may not blow up. However, they maybe less likely to make much money. This may mean that we are less likely to make money too.