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The Fraud Shotgun: The Overlapping Fields of Fraudulent Fire that Drove the Crisis- William K. Black

I have written a series of articles recently that focus on appraisal fraud.

I did so because appraisal fraud allows such “clean” tests of what (and who) drove the financial crisis and how many different private and public sector actors could have easily prevented the crisis had they acted against the fraud epidemics.

Commodities 2013 Halftime Report: A Time to Mine for Opportunity? Money Morning

It was a challenging first half of the year for most commodities, with only two resources we track on our Periodic Table of Commodities Returns rising in value.

Natural gas and oil rose 6.5 percent and 5 percent, respectively, while silver lost a third of its value and gold lost a quarter of its price from the beginning of the year.

Hedge funds for the masses- Sober Look

Tired of the same boring mutual funds? Want some hedge fund action but don’t have the $5 million minimum initial investment? Now there is a product for you – a mutual fund of hedge funds called the Blackstone Alternative Multi-Manager Fund. Among others, here are the managers to whom your capital would be allocated.

 Two Sigma Advisers
 Cerberus Sub-Advisory
 Credit Suisse Hedging-Griffo Servios Internacionais
 HealthCor Management
 Caspian Capital
 Boussard and Gavaudan Asset Management
 Wellington Management
 Good Hill Partners
 BTG Pactual Asset Management
 Chatham Asset Management
 Nephila Capital

And just like in a typical mutual fund you get daily liquidity, except for those pesky early redemption fees. As far as disclosure, Blackstone doesn’t want the world to know what fee split arrangement it has with these hedge fund managers (sub-advisors) and will only disclose the aggregate fee.

From the SEC filing: – Applicants also request an order exempting the Subadvised Series from certain disclosure obligations that may require each Subadvised Series to disclose fees paid by the Advisor to each Sub-Advisor. 

The portfolio is a mix of strategies including distressed credit, black box equity investing, long/short credit, various emerging markets, structured products, etc. It’s all the stuff that retail investors wanted to know about but were afraid to ask.

Now that institutional investors are not stepping up to hedge fund investing the way they used to, it’s time to tap the retail universe.

Blackstone mutual fund of hedge funds

SoberLook.com

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Dark Pools of Liquidity Are a Big Problem for Free Markets – Money Morning

Everything runs on liquidity. Unless you know something I don’t, that dollar bill in your pocket is just as likely to buy a can of Pabst Blue Ribbon today as it was yesterday, and will be tomorrow.

Or you could sell 1,000 lbs. of gold – if you have that lying around – without fear of completely scuttling the global gold market. Your bank has to have cash, liquidity, lying around somewhere in the back if it wants to stay in business.

And in many cases, it’s easy to see or verify this liquidity. It helps everyone feel better about doing anything.