Background: Is Coffey Causing too Many Ripples at Moore?

When Greg Coffey was at GLG running their superstar EM Fund, there were rumors the risk manager was not allowed any oversight of his hedge and long-only funds.  This came from their prime brokers so there is some credence to that statement.  We ourselves would notice his sometimes high allocations to illiquid (how does a ski resort in Hungary strike you?) or downright terrifying (private banks in Nigeria?) positions.  No one said anything because most of these positions paid off and there was also Greg’s trading style.  Sometimes he would trade around a position more than 50 times.  A day! Continue reading “Background: Is Coffey Causing too Many Ripples at Moore?”

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Background: Hedge Fund Fees, Terry Smith and Warren Buffett

Terry Smith has written again about the kerfuffle he’s raised about his last entry on the Hedge Fund 2 & 20 deal.  He says that commentary on his calculation has centered either against the calculation methodology or basically said “so what?”  I don’t question his methodology, nor do I think it doesn’t rate some soul-searching.  However, there are a couple of other things that I really have an issues with: Continue reading “Background: Hedge Fund Fees, Terry Smith and Warren Buffett”

Trade Notes: Is Philippe Jabre Right About European Banks?

Philippe Jabre

Philippe Jabre is turning bullish US equities and bearish (a change of sentiment from last year) European banks.  Either way, he’s being pretty relaxed about allocation as:

There’s enough time to allocate, the markets are not going to disappear, … We’re waiting for asset valuations to return to reflecting fundamentals, and to stop being so correlated.  A lot of European banks have now recovered to book or normalized valuations as uncertainties over the effects of the stress tests and now Basel, have softened.  But loan growth is falling, which will limit earnings growth, and if bank shares are going to trade at above book value, there has to be growth. Continue reading “Trade Notes: Is Philippe Jabre Right About European Banks?”