Blog Posts

A hedge fund target school refers to a university or college that is specifically sought after by hedge funds during their recruitment process. These schools have earned a reputation for producing graduates who are well-prepared for careers in the hedge fund industry, both in terms of academic rigor and relevant skill sets. In a previous […]

Foreign investors, the Federal Reserve, and various entities like pensions, mutual funds, and financial institutions are major holders of US Treasury bonds. Individual households, the US government, and businesses also invest in these bonds due to the reliable income they provide and backing of the US government. Government-sponsored enterprises and passive funds, like ETFs, further […]

Hamada’s Equation is a financial tool that separates a company’s total risk into two distinct categories: business risk and financial risk. By understanding and analyzing these risks separately, investors and managers can make better-informed decisions. This equation also integrates elements from the famous Modigliani-Miller Theorem, providing a more comprehensive view of a firm’s risk profile. […]

3-asset and 4-asset portfolios can be used to simplify your approach. We look at various combinations to help you get an idea on how to structure such a portfolio. We are primarily focusing on risk-adjusted returns. While many may just want a stocks-heavy portfolio to try to maximize their returns, we take more of an […]

Elections can have significant power over financial markets, both immediately and over time. This sway is due to the potential economic consequences of the policy proposals from different candidates/parties and other factors we’ll cover. And financial markets and economies also have sway on election outcomes (i.e., an underperforming economy may increase the likelihood of a […]

An LBO, or leveraged buyout, involves acquiring a company primarily using borrowed funds, with the acquired company’s assets often serving as collateral. A takeover refers to one company purchasing a majority stake in another, gaining control of its operations and assets. A corporate raid is a strategy where an individual or firm buys a large […]

Return on Capital (ROC), Return on Assets (ROA), and Return on Equity (ROE) are metrics that assess a company’s ability to turn capital into profit. Each ratio, using distinct metrics, offers a different perspective on a firm’s financial efficiency.   ROC (Return on Capital) ROC, which is sometimes termed ROIC (Return on Invested Capital), offers […]

In trading, there are countless variables that can impact the outcome of any trade, so intuition can be a reliable tool in many circumstances. For experienced traders, it can provide an intuitive edge – guiding them beyond data and analytics. But what really is intuition, and how does one use it in trading?   Key […]

Trading success isn’t just about pure analysis. At its core, successful trading often requires a dose of creativity. This original thinking capability, which allows individuals to birth fresh ideas, can be key.   Key Takeaways – Creativity in Trading While traditional schooling emphasizes memory and rule-following, real-world success often rewards creativity, intuition, and strategic thinking. […]

We all know stories about Enron, Worldcom, Wirecard, and other large companies that, suffice to say, didn’t pan out for traders and investors betting on their success. They weren’t the first and won’t be the last large companies to fall. What happens to the broader market and economy in such circumstances? A stock that constitutes […]