Mon, Apr 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Modern investor tools (6): Hedge Funds Rating aims to anticipate the next banking crisis

Monday, October 30, 2017

amb
Oilid Ben Mezzo
Benedicte Gravrand, Opalesque Geneva:

Hedge Funds Rating is an independent rating platform for hedge fund investments and management companies, headquartered in Luxembourg and soon with offices in New York. The firm creates manager and market insights through a combination of non-traditional financial and regulatory data - allowing users to make more informed investment decisions. Co-founder and quantitative analyst Oilid Ben Yezza, who has a banking background, talks to Opalesque about his research process.

Oilid Ben Yezza: The idea of our rating is to anticipate the next Lehman or Bear Stearns.

As you know, custodian banks represent the sum of all assets of their institutional clients and small part of their own capital.

Logically, the more institutional clients of banks gamble - clients without market timing ability and high risk (high leverage, loss which exceeds the VaR threshold…) - the greater the risk for the custodian bank to go bankrupt.

  The biggest crisis came from speculative funds (Amaranth, LTCM, Bear Stearns, Parvest for BNP…). So we need to know exactly who the clients of the banks are. If you know who they are and if you are able to rate them, you are able to rate the banks.

Currently, regulation does not take enough into account OTC products, which are a big part of speculative funds' investments, nor do they take enough into account risk rati......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its