hi me new to the thread .
can someone tell me what a hedge fund is?? how is it different from a mutual fund.
been trying to follow this link,but its too complex for me--just need the funda.
http://www.magnum.com/hedgefunds/abouthedgefunds.asp
arun
out after a looong hibernation......now i intend to revive this thread..had a chat wid akshat n ashish at naseoh comm service med camp regarding STOCKS(wat a place to discuss equity mkts!!!)....n they seem to be keen on joinin in...I'M BULLISH on this thread being frequented by many ppl from now on......lets c if v can keep this uptrend without ne corrections.haha.
keep postin guys.
hey hi guys my first post on this thread, i would like to inform you about my background, i am a b.com grad, having 2 years experience in stocks 
(so far so good) anyways i would like to suggest a stock called gujarat sidhee cement, which i bought at 13 a week back and is trading at 16 now, has been on an uptrend for quite some time off late. i would also like if there were more views and opinions expressed along with trading strategies on this thread looks like this thread is sleeping.
Regards
rahul
hi me new to the thread .
can someone tell me what a hedge fund is?? how is it different from a mutual fund.
been trying to follow this link,but its too complex for me--just need the funda.
http://www.magnum.com/hedgefunds/abouthedgefunds.asp
arun
A hedge fund is different from a mutual fund in the sense that a Mutual Fund is benchmarked to an Index say the BSE Index when the index goes up a mutual fund is expected to produce good returns but during a bear run it might incur losses whereas on the other hand a hedge fund is always expectd to make profits irrespective of the markets ...
a simple example would be if i invest in two stocks say airlines and oil stocks ,now say the price of oil goes up My oil stocks start earning more and i lose money on airline stocks similarly when the price of oil goes dow the airline sotcks start doing well.
In reality Hedge Funds are not all that simple they use a variety of techniques that coventional market based funds are unable to do such as invest in Junk bonds ,also Hedge Funds are highly unregulated unlike mutual funds hence more oppourtunities...
Hi,
Can someone tell me what is the main difference between Stock Split and Bonus from investor(tax benefits),company point of view??
In both the cases the number of shares increases.one doesnt have to pay any money for the extra shares.
Awaiting reply from the Sharekhans.
cheers
Munnabhai-Sharewala
Happy Investing
--------------------------------------------------------------------------------------
PS: Please contribute atleast 1% of ur profits from shares to Tsunami victims
Hi,
Can someone tell me what is the main difference between Stock Split and Bonus from investor(tax benefits),company point of view??
In both the cases the number of shares increases.one doesnt have to pay any money for the extra shares.
Awaiting reply from the Sharekhans.
cheers
Munnabhai-Sharewala
Happy Investing
--------------------------------------------------------------------------------------
PS: Please contribute atleast 1% of ur profits from shares to Tsunami victims
look at the prevous pages in this thread only and you will have all your queries answered ,there was enuff discussion regarding this...
out after a looong hibernation......now i intend to revive this thread..had a chat wid akshat n ashish at naseoh comm service med camp regarding STOCKS(wat a place to discuss equity mkts!!!)....n they seem to be keen on joinin in...I'M BULLISH on this thread being frequented by many ppl from now on......lets c if v can keep this uptrend without ne corrections.haha.
keep postin guys.
Sure tabrez... we will keep this rocking..
My pick for u all:
Usha Martin - read my analysis at http://moneymarket.rediffblogs.com/
it went up to 90+ but is again down to 81 bcoz of market doom which is expected to continue for sometime. Buy USHA Martin with a minimum 3 month perspective.
Disclaimer: If u loose money don't blame me... if u earn money analyse a stock n post the analysis.
hey hi i am new out here but good to see some experienced heads getting into this section of the economy. Anyways i stick my neck out and say that even though i dont expect the correction to continue, even if it does i would pick up this stock called gujarat siddhee cement, it is a great takeover candidate and going to be a part of this great cement consolidation.
anyway irrespective of the market movement i expect this stock to move up only. i suggest you to just keep a watch at this stock it will not zoom or anything but will gradually move up a couple odd percent everyday with a final big kick on the upside.
Oye tabrez, ashish n akshat!!! kahaan chale gaye??? :huh:
rajatb Saysa Mutual Fund is benchmarked to an Index say the BSE Index when the index goes up a mutual fund is expected to produce good returns but during a bear run it might incur losses whereas on the other hand a hedge fund is always expectd to make profits irrespective of the markets ...
Uhhhh.... Not quiet. MF need not neccessarily be benchmarked against an index. Infact most of the MFs doing exceedingly well in longterm are the equity diversified MFs.
When you invest in a MF, you know beforehand what is the objective of the fund - to invest in
1. diversified equity OR
2. sector specific (invest in stocks only in say banking space)
3. index benchmarked (benchmark against say BSE30)
4. Balanced (mostly a mix of 70/30 or 60/40 in diversified equity/debt funds)
5. Income - 100% in debt instruments (mostly short-term)
etc etc etc
But in hedge funds, the fund manager can change the nature of investment as deemed neccessary. He can play the money as reqd in whatever oppurtunity that comes up. This style of investing tends to decrease the risk as the investments r extremely diverse.
OK! Enuf fundas for today!
Lets kep this thread gng folks! :D
Uday
hey hi i am new out here but good to see some experienced heads getting into this section of the economy. Anyways i stick my neck out and say that even though i dont expect the correction to continue, even if it does i would pick up this stock called gujarat siddhee cement, it is a great takeover candidate and going to be a part of this great cement consolidation.
anyway irrespective of the market movement i expect this stock to move up only. i suggest you to just keep a watch at this stock it will not zoom or anything but will gradually move up a couple odd percent everyday with a final big kick on the upside.
Hey! Bhelcum aboard!
Thnx for the tip, would like to know why r u picking on this stock.
Did anyone apply for the Denabank IPO? Ppl r so bullish these days that even tho Denabank reported a dip in profits by a whopping 69% , its stock closed @ 1.5% more! 
Whats you take on the Jet IPO? They are looking at an issue size of Rs2000 crore. 
Did anyone apply for the Denabank IPO? Ppl r so bullish these days that even tho Denabank reported a dip in profits by a whopping 69% , its stock closed @ 1.5% more!
Whats you take on the Jet IPO? They are looking at an issue size of Rs2000 crore. :wow:
dena bank may be a good buy even tho tis reported a dip in profits simply because there is a merger in the puipelin wid Bank of baroda viz. in pretty good shape and has been delivering consisitently for quite some time...
ciao
dena bank may be a good buy even tho tis reported a dip in profits simply because there is a merger in the puipelin wid Bank of baroda viz. in pretty good shape and has been delivering consisitently for quite some time...
ciao
Yup, dats true abt the proposed merger with BoB.
My take on Denabank:
+ves
1. Proposed merger
2. Performance of the bank has significantly improved over the last 2 yrs
3. Employee Efficiency ratios is one of the best in the industry.
-ves
1. Very high NPA - inspite of bringing it down from the high of 11.5%, its still stands @ arnd 7.5%.
2. Operates only in the western part of the country, thereby limiting its growth prospects.
Disclaimer: this is my personal opinion.
BTW, I couldnt apply for the dena bank IPO 'cuz my icicidirect a/c cudnt be opened on time.
My plan was to invest in the IPO @ Rs 27, and then sell it as soon as it opens @ arnd Rs 33-37. But, that wasnt to be, courtesy ICICI...
Uday
Hi guyz...something a lil interesting...
i have my final year project on neural networks...was googling and found that
peeps seem to be makin a fortune using NNs in the prediction of stock prices....
I did not find much on the net,found a little bit of info here
Does anyone know more about this....would be gr8 to learn more about this
ciao
rohit
Hi guyz...something a lil interesting...
i have my final year project on neural networks...was googling and found that
peeps seem to be makin a fortune using NNs in the prediction of stock prices....
I did not find much on the net,found a little bit of info here
Does anyone know more about this....would be gr8 to learn more about this
ciao
rohit
Hi Rohit,
Wasn't very concinved about how they did stock prediction using NN. Its more of a theory I guess.
hey guys
have u heard of this new scheme by JM Mutual funds...(Sorry forgot the name)
It is basically a mutual fund which capitalises on futures and cash market arbitrage opportunity and so is basically a very safe fund and virtually risk free with an almost assured return of a savungs back irrespective of market conditions and may exceed that and reach close to 9-10% annually...
I thought this is good proposition for somebody looking at higher risk free returns when compare d to asavings account....
Rahul
Did anyone apply for the Denabank IPO? Ppl r so bullish these days that even tho Denabank reported a dip in profits by a whopping 69% , its stock closed @ 1.5% more!
Whats you take on the Jet IPO? They are looking at an issue size of Rs2000 crore. :wow:
Hey hobbes
Regarding dena bank and for that purpose most of the PSU Banks(except SBI) have reported a decrease in profit........
Basically this is a long term story wherein every PSU bank is shifting their bond portfolio to HTM category and thereby booking a substantial one time loss.....
And please try and understand the Balnce sheet before jumping to conclusions on net profit figures.....( Not that i am gr8 at that)
Rahul
Hi Rohit,
Wasn't very concinved about how they did stock prediction using NN. Its more of a theory I guess.
methinks tis a lil more than a theory
anywayz, if u are interested bout how a neural network actually does all this u can visit http://www.statsoft.com/textbook/stneunet.html
It offers a rather deep insight
have u heard of this new scheme by JM Mutual funds...(Sorry forgot the name)
It is basically a mutual fund which capitalises on futures and cash market arbitrage opportunity and so is basically a very safe fund and virtually risk free with an almost assured return of a savungs back irrespective of market conditions and may exceed that and reach close to 9-10% annually...
I did not exaclty get the logic...why is it safer if it is based on futures n cash arbitrage opportunities....
reasons for me being confused...
a) ok so futures are an awesome hediging instrument...but risk still exists dunnit?
b) dont market forces automatically remove arbitrage opportunities...
me a bit of a newbie so pardon the ignorance
ciao
rohit
methinks tis a lil more than a theory
anywayz, if u are interested bout how a neural network actually does all this u can visit http://www.statsoft.com/textbook/stneunet.html
It offers a rather deep insight
I did not exaclty get the logic...why is it safer if it is based on futures n cash arbitrage opportunities....
reasons for me being confused...
a) ok so futures are an awesome hediging instrument...but risk still exists dunnit?
b) dont market forces automatically remove arbitrage opportunities...
me a bit of a newbie so pardon the ignorance
ciao
rohit
hey rohit.....
Basically if u shall see at the starting of a new future series there will be some time premium and some implied volatility premium that is already built into the price of the futures and i call it risk free because towards the end of the month this premium comes closer to zero and so the premium becomes ur return........
And also i forgot to add that the fund buys equivalent amount of shares of the futures stock in the cash market and so the question of risk does not actually arise...........
And this form of return generation is common among institutional investors as you are generally able to generate close to 11-12% risk free returns annually.....
The only two risks associated with the markets for this fund is the time when it rollsover its position and also if the cost of carry on a security or shd i say futures is negative at the beginning of the contract..........
i hope this will help u understand tehterm risk free.........
Rahul
hey rohit.....
Basically if u shall see at the starting of a new future series there will be some time premium and some implied volatility premium that is already built into the price of the futures and i call it risk free because towards the end of the month this premium comes closer to zero and so the premium becomes ur return........
And also i forgot to add that the fund buys equivalent amount of shares of the futures stock in the cash market and so the question of risk does not actually arise...........
And this form of return generation is common among institutional investors as you are generally able to generate close to 11-12% risk free returns annually.....
The only two risks associated with the markets for this fund is the time when it rollsover its position and also if the cost of carry on a security or shd i say futures is negative at the beginning of the contract..........
i hope this will help u understand tehterm risk free.........
Rahul
To add to what Rahul has said: chk out JM's website: http://www.jmmutual.com/newsdetail.php?i=65
I am copy pasting whats been said on that page:
The following hypothetical example will make the concept clearer.
Buy ABC @ Rs.300/- and sell one month ABC Futures @ Rs.310/-. Scenario I Scenario II
ABC Price @ expiry 400 200
Profit/Loss on Cash 100 (100)
Profit/Loss on Futures (90) 110
Net profit 10 10
So, in effect, it does kinda make it low-risk proposition. I still wont say no-risk, 'cuz a lot will depend on the prices @ which the stock has been bought and the futures sold. Or atleast thats what I've understood. Lemme know if I missed out something. :grin:
Nice it is!
Btw, Rahul, the name is Equity and Derivative Fund.