Comments on: Meet Neal Berger: The Hedge Fund Manager Who Called The Market Top

By: Giving Credit Where Credit Is Due: Doug Kass, The Hedge Fund Manager Who Called The Bottom | TIM - Timothy Sykes

Tue, 21 Apr 2009 12:15:43 +0000

[...] the spirit of Neal Berger, the hedge fund manager who inadvertently called the market top, I give you Doug Kass (remember I did a quick interview with him HERE?) the hedge fund manager who [...]

By: Giving Credit Where Credit Is Due: Doug Kass, The Hedge Fund Manager Who Called The Bottom | TIM - Timothy Sykes

Tue, 21 Apr 2009 12:15:43 +0000

By: :(

:( — Wed, 08 Apr 2009 06:32:12 +0000

Sounds like about as much of arbitrage as a basis trade, and that worked out well for everyone…

By: :(

:( — Wed, 08 Apr 2009 06:32:12 +0000

Sounds like about as much of arbitrage as a basis trade, and that worked out well for everyone…

By: Brent

Brent — Tue, 07 Apr 2009 02:48:31 +0000

Thanks very much for correcting me. I (falsely) assumed that you couldn’t get a term repo that matched the maturity of the T-bill. Very interesting.

By: Brent

Brent — Tue, 07 Apr 2009 02:48:31 +0000

Thanks very much for correcting me. I (falsely) assumed that you couldn’t get a term repo that matched the maturity of the T-bill. Very interesting.

By: Timothy Sykes

Timothy Sykes — Tue, 07 Apr 2009 02:46:40 +0000

haha yes the Berger strikes back!

By: Timothy Sykes

Timothy Sykes — Tue, 07 Apr 2009 02:46:40 +0000

haha yes the Berger strikes back!

By: Neal

Neal — Tue, 07 Apr 2009 02:44:15 +0000

Sorry but you are wrong. The trade is hedged with corresponding term repo and locked in with identical term financing. Tail risk is hedged with Fed Fund futures. Rates going up significantly might trigger a margin call on the T-Bill side which I mentioned as a risk. Held to maturity, the trade has no risk other than managing the margin risk and the risk that the Treasury defaults on 6 month bills. The trade would not lose money on any movement in rates. Neal

By: Neal

Neal — Tue, 07 Apr 2009 02:44:15 +0000