Gas Tank © fintag

News comments:
Just like gas guzzling vehicles being replaced by solar powered alternatives, Hedge Funds will morph into something very different too. In Europe, Newcits are the de facto fund structure that is taking over the once cheap as chips Cayman co.

UCITS3 funds are being abused big time. They are supposed to be liquid, lowly concentrated, unlevered and not to contain nasty derivatives. They were designed to protect pension funds from investing in toxic waste. Well the reality is many of these UCITS funds are toxic. You may laugh but this is true. Hedgies have pulled the wool over the ...whats the phrase ...you know what I mean.

I wonder when we shall see the first Newcits fund to blow up because some hedge fund was swapping some returns on an underlying that was as illiquid as timber that suddenly burned down without being insured? It will happen and the EU will look stupid, Investors will get burned and Hedgies will get a bad name.

This afternoon I am seeing a foreigner play another foreigner at tennis. If the first foreigner wins, I will have to pretend I am Scottish at the weekend.

Today's shorts:
CT VS NYC (nymag)
Sempra Sold for a Song (cityam)
Hedgies pretend to be frightened (independent)

Today's longs:
Slow Boats (nyt)
Norway is the new Malta, Ireland, Gibraltar (businessweek)

Gossip:
Newcits to be renamed takingthepiss funds.