C.S. Jefferson

Ken Griffin's Citadel Fund: Options Eye Candy

another well informed piece--yes, you are correct that only in the financial world FAILURE is rewarded! My mistake, politics included--but the pay grade isn't on par with Wall Street tycoons...

I'm curious, do you know what their "debt to equity" leverage ratios are? How overleveraged were the CITADEL flagship funds?

To be honest, I'm surprised the hedge fund industry has survived so well facing redemptions and liquidity issues--not to mention, Bernie Madoff, Allan Stanford and mini-Madoff rip off con-artists that have followed.

Where are the clawbacks against all those hedge fund managers that extracted millions and billions in performance fees from unrealized paper profits?

If you pay me to lay down bets in the casino and I can take profits when I hit blackjack and not incur any losses or responsibility when I bust, where is the moral hazard?

What good are double-digit annualized returns if at the end of the bubble burst your entire principal is wiped out?

Ah, well, I digress......

Hedge Fund Blue Ridge Concentrates on Apple

Wow, another indication of chasing momentum late to the game/

This is a great article because it demonstrates the potential problem looming for AAPL whenever they finally miss on quarterly earnings. Too many money managers are leaning in one directional bias that puts retail investors at risk somewhere down the line!

I doubt it's anytime soon because everything they are doing is light years ahead of everyone else, but nothing goes perpetually up--not even AAPL

It's one of the best Rocky stories out there about a comeback kid.
I think, very likely, moves much higher into the holiday season and easily surpasses 200 again sometime in the future. However, I would not recommend anyone to chase momentum here if you aren't already in the position-

But the problem is that there is too much manipulation in this stock and the average investor can and has been hurt way too many occasions to justify the risk to reward.

They don't pay a dividend with all their cash and really aren't aggressively trying to acquire companies.

I think one of their mistakes is that for being so successful in monetizing content, why they haven't aggressively pursued buying or acquiring content providers when they were hammered last year is beyond me.


More and more content providers are looking for ways to squeeze Apple and itunes out--so far unsuccessful--but it's a real risk in the stock going forward.

Their trump card is, obviously, DIS which has Steve Jobs as the largest individual shareholder on board.

Because, quite honestly, what makes an ipod or an iphone what it is relies on locking competitors out of their itunes store. How long can it last? It's just a question and one that any investor should consider as a risk, whether realized or not.