DOUGLAS KOBAK’s Post

Alerting preferred hedge fund clients early so they can front run trades. Commissions and favors over the law. But I'm sure they put your account above any of that- NOT. Not sure what to do? Call us for a different approach. #MLGWM #WealthManagement #FinancialPlanning #RetirementPlanning

Alerting preferred hedge fund clients early so they can front run trades. Commissions and favors over the law. But I'm sure they put your account above any of that- NOT. Not sure what to do? Call us for a different approach. #MLGWM #WealthManagement #FinancialPlanning #RetirementPlanning

Quantitative hedge funds, often known as “quant funds,” are a subset of hedge funds that leverage their investment decisions on advanced statistical and mathematical models. Bolder Group’s Global Head of Funds, Neco Dusseldorp, shares his insights about the emergence, future developments and industry trends on quant funds here: https://bit.ly/3O28zJA #fundmanagement #finance #financialservices #quantfunds #funds #assetmanagement #markettrends #BolderGroup #BolderLaunch #BGALaw

"Gensler: SEC dealer rule not aimed at hedge funds Hedge funds are not the main target of the US Securities and Exchange Commission's Treasury dealer rule, chair Gary Gensler has said. The rule 'is primarily about principal trading firms that dealer trade,' Gensler said. 'It's about parties posting liquidity on both sides of the market in the same security. That's what dealers do. I couldn't tell you whether some small number of hedge funds are doing that. To my knowledge, that's not what they're doing as a regular business,' he added. The SEC said there could be up to 16 private funds, including hedge funds, affected by the bill." Full Story: Financial Times (2/18) via FIA SmartBrief Comment: When a foundational securities law term, being revised in a 100 page SEC release, has to be further "explained" as not applying to certain groups (despite actual wording) by an SEC Chair with divergent views from other SEC commissioners and veteran securities lawyers, you don't have the rule of law. P.S. It's not the "Treasury dealer rule", FT; it's the "Dealer Rule." #dealer #securitiesdealer #securitieslaw #securitiesregulation #SEC #garygensler #equalprotection #ruleoflaw #regulationbyenforcement No rights claimed or asserted to image.

Our very own expert, Isaac Wheeler, has been featured in a Risk.net article on "curve steepener trades." Isaac's observations about the market close out the article. For a limited time, the article is available without a subscription. Don't miss out on this exclusive opportunity to gain insights from one of the industry's leading voices. Check it out here: How steepener trades burned hedge funds, and what happened next - https://hubs.la/Q02DrW700 #ThoughtLeadership #Finance #SteepenerTrades #DerivativePath #RiskNet

The definition of securities dealers is expending to include hedge funds, and they don't like it. In the new definition, you become a dealer - if you are often on both side of the market, or earn revenue from bid-ask spreads, or capture incentives from venues, - unless you have less than $50m in assets, or are a mutual fund, a central bank, a sovereign or an internation financial institution. That very much looks like a definition made for market-making firms! As a result, you must register to the SEC, affiliate to a SRO and comply with all federal rules & regulations. “These measures are common sense,” SEC Chair Gary Gensler. “Congress did not intend for registration and regulatory requirements to apply to some dealers and not to others.”  Industry groups are already complaining of increased costs, reduction of liquidity, bad timing (the US government is borrowing), their loss of access to IPOs, their unfair teratment (vs mutual funds)... This new rule adds to new regulations for investor disclosures, short selling and activist investments. A previous version of the rule would have included 16 private funds (the hedge funds that do not have to register). This new version would include 43 of them, so the SEC is also putting oversights onto the least regulated part of teh alternative industry. #HedgeFunds #PrivateFunds #MarketMaking #Bonds #Govies #FinancialMarkets #Regulation Navesink International (https://lnkd.in/eq8vGgP) is the home of the best industry experts related to financial markets. The WSJ has a good article too:

US appeals court voids SEC private equity, hedge fund oversight rule The industry should think long and hard about the implications of this decision. While I understand the industry's short term view of the rule, I remain concerned that #RIAs may be overlooking the long-term benefits that #democratizingalternativeinvesting will have on the industry. #Investors in #401k and #IRA plans need access to the diversified returns available from alternative investing and this decision will play into the fears that 401k and IRA sponsors have about the safety and soundness of the #privatefund industry. A 10% allocation of these assets can add $2-4tr in AuA.

While there are clear laws and consequences to insider trading, there is one grey area that Wei Wang, Distinguished Professor of Finance at Smith School of Business at Queen's University, recently discovered. When hedge funds serve on the unsecured creditors’ committee (UCC) of firms that are under bankruptcy protection, they are given access to private information about those firms as well as companies with whom they have economic links — and nothing stops them from using this information in other market trades. Learn more about how hedge funds are benefitting from this loophole in my latest for Smith Business Insight:

In Q1 2024, hedge funds and institutional managers pushed Treasury transaction values to a whopping $514 billion, marking a 27% increase from Q4 2023. Find out what's driving this surge!