Pair Trading Pair trading is a strategy for hedging risk by opening opposing positions in two related stocks, commodities, or other derivatives. This can be a way to profit no matter what conditions the market is in since profit is determined not by the overall market, but by the relationship between the two positions. While […]
Negative interest rates are back! Should portfolio managers change their game plans because of them?
Do companies with high environmental, social, and governance (ESG) ratings outperform their lower-ranked counterparts?
Liquidity is often a key factor in how a stock will be priced. Often times, if there is not enough liquidity, a stock may not be priced appropriately based upon its fundamentals. I believe this to be the case with CannTrust, a company who’s stock I see being 50% below its true value, and just […]
An offering occurs when a company makes a public sale of stocks, bonds, or another security. While the term offering is typically used in reference to initial public offerings (IPOs), companies can also make secondary offerings after their IPOs in order to raise additional capital. In general, secondary offerings are made to the public to […]
Those that sold their cryptocurrencies at the peak of the market made a tremendous amount of money, but those that hold on to the bitter end are going to be gravely disappointed. For a while there, it seems like cryptocurrency prices were going to go up forever. 2017 was the best year for cryptocurrencies ever, […]
In 1993, William Kurt Hauser, a San Francisco investment analyst, presented his results from an incredibly interesting study. Hauser had analyzed tax revenues in the United States over time and came to the conclusion that tax revenue as a percentage of GDP had remained around a narrow band of 19% since 1946. That was astonishing. […]
Steve Cohen is the founder of Point72 Asset Management, a family office that manages more than $12 billion. Cohen founded S.A.C. Capital Advisors in 1992, but the hedge fund shut down in 2016 after the firm pleaded guilty to insider trading charges. Point72 spun off from S.A.C. in 2016 and had only managed Cohen’s personal […]
While it often doesn’t come up in determining whether or not to buy shares of a company, not all shares are made the same. A company’s share structure describes not only how many shares a company is divided into, but also the various types of shares that the company is divided into. For example, a […]
After analyzing small-cap biotech data from 2007 on, Akash Goyal has found that higher hedge fund ownership is positively correlated with forward returns and that stocks with higher short interest are correlated with negative forward returns.