Articles in the Alternative Investments Category
Alternative Investments »
Hedge fund of funds are investments that invest in other hedge funds. Hedge fund of funds provide opportunities for increased diversification, access to highly desirable funds, and fund selection and monitoring expertise. However, hedge fund of funds include a double layer of fees, dramatically reducing the investments’ appeal.
Hedge fund of funds allocate contributed capital between a variety of hedge funds. Normally, a portfolio of 15 to 25 different hedge funds is used. Many, but not all, hedge fund of funds are register with the SEC, and have lower minimum investments …
Alternative Investments, Investment Banking »
As private equity, hedge funds, and other alternative asset management firms seek additional capital, keeping internal operations confidential remains an important priority.
These companies rely on secrecy and limited disclosure to protect future plans, unique trading strategies, or other business practices. Because of this need to keep operations confidential, raising capital through global exchanges that are heavily regulated and require large amounts of disclosure is a less attractive option.
GSTrUE
This need to raise capital but limit disclosure is a service Goldman Sachs’s GSTrUE (GS Tradable Unregistered Equity OTC Market) intends to provide. …
Alternative Investments »
As global economies grow, use more natural resources, and emit more Carbon Dioxide (CO2), more solutions will be needed to reduce global warming. The financial markets provide one unique way of limiting CO2 emissions through the creation of a carbon credit market. Each carbon credit represents one tonne of C02. The carbon credit market creates a monetary value for carbon credits and allows the credits to be traded.
Background and the Kyoto Protocol
The carbon credit market was a result of the Kyoto Protocol. The Kyoto Protocol created legally binding emission targets …
Alternative Investments, Economics, Financial Theory »
Henry Paulson JR is the United States Treasury Secretary. Paulson has been serving as Treasury Secretary since May 30, 2006. In addition, Paulson serves as a member of the the International Monetary Fund (IMF) Board of Governors. Before becoming Treasury Secretary, Paulson served as CEO and Chairman of Goldman Sachs. Goldman Sachs is one of the most successful and prestigious global investment banks.
These credentials evidence how experienced, knowledgeable, and successful Paulson is. In this 2004 video, filmed at the Harvard Business School, Paulson comments on a variety of business, economic, …
Alternative Investments »
This interesting PBS video explains the rise and the risks of hedge funds. The video does a good job of explaining the potential negative impact from the dramatic amount of leverage used by some hedge funds. Also, the video features hedge fund manager and author Nicholas Taleb, who discusses the posibility of black swan events.
Alternative Investments »
What is Securities Lending?
Securities lending is the temporary transfer of securities on a collateralized basis from one party (the lender) to another (the borrower) for a fee. The borrower must return the securities to the lender after an agreed period or on demand. Securities lending allows the lender to earn enhanced returns on securities through finance charges and provides the borrower with many beneficial opportunities. Most securities lending is collateralized using cash, other securities, or a letter of credit. Securities lending also plays a more general beneficial role by increasing …
