Three prominent hedge fund managers weigh in on what lies ahead for markets in 2012.iStockphoto/Getty Images/iStockphoto
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Size matters
A recent study finds that small hedge funds (<$500-million) outperformed big ones by 254 bps and 220 bps per annum over five and ten years, respectively.
Why? For starters, most highly-talented managers start their own firms rather than work at larger firms. Also, managers at smaller shops have a better opportunity set, and experience higher pressure to perform.
Lessons learned from hedge fund blowups
There are plenty of reasons hedge funds fail, namely excessive leverage and liquidity (or lack thereof). Other things to look out for include a lack of transparency, lack of a key man clause and a manager full of hubris.
S.E.C. Heinz case no slam dunk
The 2,500 call options purchased a day before the acquisition of Heinz was announced certainly appear suspicious, but unless investigators can prove they were the result of insider trading, the S.E.C. will have a tough time making the charges stick.
Amazon should just buy RadioShack
Amazon has been moving toward establishing a physical retail presence in the U.S. and U.K. RadioShack has lost more than 80 per cent of its value in three years and has more than 4,400 stores in the U.S. alone. Will it happen?
New York lawsuit targets Poseidon Concepts
A law firm representing Poseidon shareholders is alleging that the company "made statements that were materially false and misleading regarding Poseidon Concepts' financial position, financial performance and cash flows, overstated the company's incomes and reported inflated assets."
(Jody White is the Web Editor for Streetwise.)
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