Search This Blog

12 Sep 2008

Insider uncorks secret liquor store code

The highly descriptive terms used to describe wines sold by Sweden's alcohol retail monopoly Systembolaget are riddled with secret code, according to an inside source.

read more | digg story

Hedge Funds Hit An All Time Low

New investments in hedge funds for the first six months of 2008 was below $30 billion, according to Hedge Fund Research, way below the $118 billion raised for the same period the year before, making 2008 is the worst year on record for the industry as the average hedge fund dropped off more than 4%.

According to research, the unexpected downturn will lead investors to rethink their investments or ask fund managers to lower their fees from the current rate of 2% and reduce their 20& cut on profits. Problems at hedge funds may also invite a government probe.

Dan McAllister, treasurer and tax collector of San Diego County, attributed the hedge fund's popularity to it being seen as a panacea and a sure way to earn big money fast. "But maybe it's time to be a little cautious, and it's time to look at things with a more discreet eye," McAllister told the New York Times.

In anticipation of harder times ahead, fund managers are cutting employee Christmas bonuses, said a study slated to be released this week by Glocap, a hedge fund recruitment company. Recruiting firms like Heidrick and Struggle are maintaining a watch list of problematic hedge funds. Tim Holt, a partner in Heidrick who supervises the company's Wall Street recruitment task, has 100 hedge funds on its watch list and expects 50 to 80 to be added in the next few months.

Pegasus' Auto Loan Fund Shows Positive Trend

Hedge fund advisor and manager American Pegasus LDG, LCC., is seeing the 36th subsequent month of positive returns for the Pegasus Auto Loan Fund, which invests in US subprime auto loans.

The fund has returned an average of 1.55% per month with 100% positive months since inception in September of 2005.

Providing the opportunity to profit from stable high yields via sub-prime auto loans with collateral in the form of automobiles, the fund currently has $89 million under management and uses no leverage.

"In the $200 billion auto industry there is high demand for auto loan originations." The Pegasus preformance sheet shows, "In 2005, 4.7% of U.S. workers used public transportation and 90% workers own a car; 1/3 households own > 1 car; Average 1.9 cars/household"

That number rises and falls according to energy fluctuations, according to the Energy Information Administration, "Transportation costs have increased due to many factors related to travel and prices paid for transportation fuel, while being somewhat offset by improved fuel economy." But the numbers remain viable ant the US now has 765 motor vehicles per 1000 capita.

The American Pegasus Auto Loan Fund directly sources fully, collateralized sub prime US auto loans. Underwriting criteria is strictly enforced along with well designed risk controls.

Pegasus was founded in 1997 as an investment advisory firm focusing on equity investment in managed accounts. The advisory firm launched first equity long–short hedge fund was established in the same year. In 2001, Pegasus began to manage portfolios in currencies and commodities, launching a series of life settlement funds., followed by the American Pegasus Auto Loan Fund in 2005. American Pegasus Investment Management is registered with the SEC as an investment advisor.