(23.05.2008) У Citadel - один из наиболее мощных по интеллектуальной силе аналитических отделов среди всех инвестиционных фондов, а также есть «запасная» компьютерная система, расположенная где-то за пределами Чикаго.
…Два основных фонда, через которые Citadel торгует на биржах, называются Kensington Global и Wellington. Сейчас на Citadel приходится 2-3% дневного оборота торгов на Нью-Йоркской, Лондонской и Токийских биржах (около 70 млн. акций), почти 10% рынка казначейских облигаций и около 15% рынка опционов. На рынке опционов Citadel – единственный хедж-фонд, который может действительно серьезно на влиять на торги.
Фонд не ограничивает свою торговлю перечисленными инструментами, а зарабатывает буквально на всем, что продается и покупается: от фьючерсов на газ до валюты
Lt. Gen. H.R. McMaster In a brief statement from Mar-a-Lago, President Trump said on Monday that Lieutenant General Herbert Raymond McMaster would be his new national security adviser, again turning to the U.S. military to play a central role on his foreign policy team. Trump also named Keith Kellogg, a retired U.S. Army General who has been serving as the acting national security adviser, as chief of staff to the National Security Council. Speaking to reporters in West Palm Beach where he spent the weekend, Trump said John Bolton, a former U.S. ambassador to the United Nations, would serve the administration in another capacity. Trump spent the weekend considering his options for replacing Flynn. His first choice, retired Vice Admiral Robert Harward, turned down the job last week. BREAKING: Trump picks retired Gen. H.R. McMaster as next national security adviser https://t.co/BHiYnKtXJe — NBC News (@NBCNews) February 20, 2017 McMaster is a highly regarded military tactician and strategic thinker, but his selection surprised some observers who wondered how McMaster, who is known for questioning authority, would deal with a White House that has not welcomed criticism, Reuters wonders. He replaces a Trump loyalist. Michael Flynn, a retired Army lieutenant general, was fired as national security adviser on Feb. 13 after reports emerged that he had misled Vice President Mike Pence about speaking to Russia's ambassador about U.S. sanctions before Trump's inauguration. McMaster, 54, is a West Point graduate known as "H.R.," with a PhD in U.S. history from the University of North Carolina at Chapel Hill. He was listed as one of Time magazine's 100 most influential people in 2014, partly because of his willingness to buck the system. A combat veteran, he gained renown in the first Gulf War - and was awarded a Silver Star - after he commanded a small troop of the U.S. 2nd Army Cavalry Regiment that destroyed a much larger Iraqi Republican Guard force in 1991 in a place called 73 Easting, for its map coordinates, in what many consider the biggest tank battle since World War Two. As one fellow officer put it, referring to Trump's inner circle of aides and speaking on condition of anonymity, the Trump White House "has its own Republican Guard, which may be harder for him to deal with than the Iraqis were." The Iraqi Republican Guard was ousted dictator Saddam Hussein's elite military force. As Reuters adds, McMaster's fame grew after his 1997 book "Dereliction of Duty" criticized the country's military and political leadership for poor leadership during the Vietnam War. * * * According to Foreign Policy'sThomas Ricks says, picking McMaster is not a bad thing. I’ve known him since he was major. He’s smart, energetic, and tough. He even looks like an armored branch version of Harward. (That’s him, working out with a punching bag in Iraq, in the foto. I took it in the citadel in downtown Tell Afar one sunny winter day about 10 years ago.) (Btw, Harward was scheduled to appear on ABC’s “This Week” yesterday morning, but backed out an hour before airtime. ) Once Trump was turned down by Harward, it became more likely that he would turn to the active duty military for his 3rd pick for the job. McMaster is among the best of them out there. For his Ph.D. dissertation, he wrote one of the best books on the Vietnam War, Dereliction of Duty: Johnson, McNamara, the Joint Chiefs of Staff, and the Lies That Led to Vietnam. He has good combat experience, he was a good trainer, and he led the 3rd Armored Cavalry Regiment well in his deployment to Iraq, most notably in pacifying Tell Afar, to the west of Mosul. I wrote about his operations there in my book The Gamble. I am traveling so I don’t have it with me, but I remember him telling his soldiers that understanding counterinsurgency really wasn’t hard: “Every time you disrespect an Iraqi, you’re working for the enemy.” They even had “Customer Satisfaction Forms” that detainees were asked to fill out upon release: Were you treated well? How was the food? What could we do better? There are two big differences between him and Harward: First, he is on active duty. (Though the Army inexplicably couldn’t find a four star job for him, and had told him to plan to retire later this year.) Second, his wife won’t kill him if he takes the job, as Harward’s wife might have. That said, the basic problems remain. To do the job right, McMaster needs to bring in his own people. And it remains unclear if he can get that. As for relations with the Pentagon: McMaster knows Mattis, but not well. (They both spoke at a conference at the University of North Carolina in April 2010.) But they are similar people and will respect each other. Ricks adds that he did an informal poll of people who have worked for McMaster, asking if they would be willing to follow him to the National Security Council staff. To a surprising degree, they replied, Yes, they would. That’s an indication of loyalty to and confidence in him. * * * Herbert Raymond "H.R." McMaster's full public bio is below: Herbert Raymond "H. R." McMaster (born July 24, 1962 in Philadelphia, Pennsylvania) is an American soldier, and a career officer in the U.S. Army. His current assignment is Director, Army Capabilities Integration Center and Deputy Commanding General, Futures, U.S. Army Training and Doctrine Command. His previous assignment was commander of the Maneuver Center of Excellence at Ft. Benning, Georgia. McMaster previously served as Director of Combined Joint Interagency Task Force-Shafafiyat (CJIATF-Shafafiyat) (Transparency) at ISAF (International Security Assistance Force) Headquarters in Kabul, Afghanistan. He is known for his roles in the Gulf War, Operation Iraqi Freedom, Operation Enduring Freedom, and his reputation for questioning U.S. policy and military leaders regarding the Vietnam War. McMaster graduated from Valley Forge Military Academy in 1980, where he served as a company commander with the rank of cadet captain. He is a 1984 graduate of West Point, where he played rugby. He holds Master of Arts and Ph.D. degrees in American history from the University of North Carolina at Chapel Hill, and authored a thesis critical of American strategy in the Vietnam War, which is detailed in his 1997 book Dereliction of Duty.It harshly criticizes high-ranking officers of that era, arguing that they inadequately challenged Defense Secretary Robert McNamara and President Lyndon Johnson on their Vietnam strategy. The book is widely read in Pentagon circles and is on the official reading list of the Marine Corps. Early Career His first assignment after commissioning was to the 2nd Armored Division at Fort Hood, where he served in a variety of platoon and company level leadership assignments with 1st Battalion 66th Armor Regiment. In 1989, McMaster was assigned to the 2nd Armored Cavalry Regiment at Warner Barracks in Bamberg, Germany, where he served until 1992, including deployment to Operation Desert Storm.During the Gulf War in 1991 he was a captain commanding Eagle Troop of the 2nd Armored Cavalry Regiment at the Battle of 73 Easting. During that battle, though significantly outnumbered and encountering the enemy by surprise as McMaster's lead tank crested a dip in the terrain, the nine tanks of Eagle Troop destroyed over eighty Iraqi Republican Guard tanks and other vehicles without loss, due to the Abrams tank being state-of-the-art armored technology while the Iraqi equipment included grossly outdated T-62s and -72s of the Soviet era as well as similarly dated Type 69s of Chinese manufacture. "At 4:10 p.m. Eagle Troop received fire from an Iraqi infantry position in a cluster of buildings at UTM PU 6801. Eagle troop Abrams and Bradleys returned fire, silenced the Iraqi guns, took prisoners, and continued east with the two tank platoons leading. The 12 M1A1 tanks of Eagle Troop destroyed 28 Iraqi tanks, 16 personnel carriers and 30 trucks in 23 minutes with no American losses. At about 4:20 Eagle crested a low rise and surprised an Iraqi tank company set up in a reverse slope defence on the 70 Easting. Captain McMaster, leading the attack, immediately engaged that position, destroying the first of the eight enemy tanks to his front. His two tank platoons finished the rest. Three kilometers to the east McMaster could see T-72s in prepared positions. Continuing his attack past the 70 limit of advance, he fought his way through an infantry defensive position and on to high ground along the 74 Easting. There he encountered and destroyed another enemy tank unit of eighteen T-72s. In that action the Iraqis stood their ground and attempted to maneuver against the troop. This was the first determined defense the Regiment had encountered in its three days of operations. Still, the Iraqi troops had been surprised because of the inclement weather and were quickly destroyed by the better trained and better equipped American troops." McMaster was awarded the Silver Star. The battle features in several books about Desert Storm and is widely referred to in US Army training exercises. It also receives coverage in Tom Clancy's 1994 popular non-fiction book Armored Cav. McMaster served as a military history professor at West Point from 1994 to 1996, teaching among other things the battles in which he fought. He graduated from the United States Army Command and General Staff College in 1999. Later Career From 1999 to 2002, McMaster commanded 1st Squadron, 4th Cavalry Regiment, and then took a series of staff positions at U.S. Central Command (USCENTCOM), including planning and operations roles in Iraq. In his next job, as lieutenant colonel and later colonel, McMaster worked on the staff of USCENTCOM as executive officer to Deputy Commander Lieutenant General John Abizaid. When Abizaid received four-star rank and became Central Command's head, McMaster served as Director, Commander's Advisory Group (CAG), described as the command's brain trust. In 2003 McMaster completed an Army War College research fellowship at Stanford University's Hoover Institution. In 2004, he was assigned to command the 3rd Armored Cavalry Regiment (3rd ACR). Shortly after McMaster took command the regiment deployed for its second tour in Iraq and was assigned the mission of securing the city of Tal Afar. That mission culminated in September with Operation Restoring Rights and the defeat of the city's insurgent strongholds. President Bush praised this success, and the PBS show Frontline broadcast a documentary in February, 2006 featuring interviews with McMaster. CBS' 60 Minutes produced a similar segment in July, and the operation was the subject of an article in the April 10, 2006 issue of The New Yorker. Author Tim Harford has written that the pioneering tactics employed by 3rd ACR led to the first success in overcoming the Iraqi insurgency. Prior to 2005, tactics included staying out of dangerous urban areas except on patrols, with US forces returning to their bases each night. These patrols had little success in turning back the insurgency because local Iraqis who feared retaliation would very rarely assist in identifying them to US forces. McMaster deployed his soldiers into Tal Afar on a permanent basis, and once the local population grew confident that they weren't going to withdraw nightly, the citizens began providing information on the insurgents, enabling US forces to target and defeat them. McMaster passed command of the 3rd Armored Cavalry Regiment on June 29, 2006 and joined the International Institute for Strategic Studies in London, as a Senior Research Associate with a mandate described as "conducting research to identify opportunities for improved multi-national cooperation and political-military integration in the areas of counterinsurgency, counter-terrorism, and state building", and to devise "better tactics to battle terrorism." From August, 2007 to August, 2008 McMaster was part of an "elite team of officers advising US commander" General David Petraeus on counterinsurgency operations while Petraeus directed revision of the Army's Counterinsurgency Field Manual during his command of the Combined Arms Center. Petraeus and most of his team were stationed in Fort Leavenworth at the time but McMaster collaborated remotely, according to senior team member John Nagl. Career as General Officer McMaster was passed over for promotion to Brigadier General in 2006 and 2007, despite his reputation as one of "the most celebrated soldiers of the Iraq War." Though the rationale for promotion board decisions is not made public, it is generally agreed that McMaster was held back because of his tendency to argue against the status quo. It should be noted that McMaster was the second person in his 1984 West Point Class to be promoted to Brigadier General behind only William Rapp and the third in the entire 1984 Year Group. No officers from later year groups are senior to him except for Special Corps officers, e.g. Medical and Judge Advocate General Corps. This should call into question the assertion that he was ever "passed over" for promotion. McMaster was selected for Brigadier General on the 2008 promotion list. Secretary of the Army Pete Geren had requested General Petraeus to briefly return from Iraq to take charge of the promotion board as a way to ensure that the best performers in combat received every consideration for advancement, and it is generally acknowledged that Petraeus's presence ensured that McMaster was among those selected. In August, 2008 McMaster assumed duties as Director, Concept Development and Experimentation (later renamed Concept Development and Learning), in the Army Capabilities Integration Center (ARCIC) at Fort Monroe, Virginia, part of U.S. Army Training and Doctrine Command. In this position McMaster was involved in preparing doctrine to guide the Army over the next ten to twenty years. He was promoted on June 29, 2009. In July 2010 he was selected to be the J-5, Deputy to the Commander for Planning, at ISAF (International Security Assistance Forces) Headquarters in Kabul, Afghanistan. Additionally, McMaster directed a joint anti-corruption task force (CJIATF-Shafafiyat) at ISAF Headquarters. As with his promotion to Brigadier General, McMaster was the second member of his 1984 West Point class behind William Rapp to be selected for promotion to Major General and all six Year Group 84 officers selected that year were promoted within 2 months of each other. Rapp was selected the previous year and was the only Line Year Group 84 officer selected that year. Army Chief of Staff General Martin Dempsey called McMaster "probably our best Brigadier General." McMaster was nominated for Major General on January 23, 2012. In April, 2012 he was announced as the next commander of the Army's Maneuver Center of Excellence (MCoE) at Ft. Benning. On June 13, 2012 McMaster assumed command of the MCoE and was promoted to Major General in a ceremony at Ft. Benning with a date of rank of 2 August 2012. On February 18, 2014 Defense Secretary Chuck Hagel announced the nominations of four officers for promotion to Lieutenant General, including McMaster, who was selected to become Deputy Commander of the Training and Doctrine Command and Director of TRADOC's Army Capabilities Integration Center. "It is heartening to see the Army reward such an extraordinary general officer who is a thought leader and innovator while also demonstrating sheer brilliance as a wartime brigade commander," retired Army Gen. Jack Keane, a former Army vice chief, said of the promotion. In April 2014, Maj General McMaster made Time magazine's list of 100 most influential people in the world. He is hailed as "the architect of the future U.S. Army" in the accompanying piece written by retired Lt. Gen. Dave Barno, who commanded U.S. and allied forces in Afghanistan from 2003 to 2005. "Major General Herbert Raymond McMaster might be the 21st century Army's pre-eminent warrior-thinker," Barno wrote. "Recently tapped for his third star, H.R. is also the rarest of soldiers—one who has repeatedly bucked the system and survived to join its senior ranks." McMaster is cited for his "impressive command and unconventional exploits in the second Iraq war," Barno wrote. In July 2014 McMaster was promoted to Lieutenant General and began his duties at the Army Capabilities Integration Center.
Некий пользователь Twitter "Русланс Антроповс" опубликовал в своем блоге фотографию, на которой запечатлен билет в кинотеатр Kino Citadele с информацией на русском языке. Озабоченные "на язык" пришли в ужас...
Subscribe: http://smarturl.it/reuterssubscribe In the rubble-strewn square outside Aleppo's ancient citadel and under the scorched vaults of its covered souk, workmen are starting to repair damage to the war-torn Syrian city's priceless historical heritage. Mia Womersley reports. More from Syria: http://smarturl.it/SyriaAttack Subscribe: http://smarturl.it/reuterssubscribe Reuters tells the world's stories like no one else. As the largest international multimedia news provider, Reuters provides coverage around the globe and across topics including business, financial, national, and international news. For over 160 years, Reuters has maintained its reputation for speed, accuracy, and impact while providing exclusives, incisive commentary and forward-looking analysis. http://reuters.com/ https://www.facebook.com/Reuters https://plus.google.com/u/0/s/reuters https://twitter.com/Reuters
Russian Air Force planes accidentally launched a missile strike on Turkish troops in north Syria, killing three servicemen and wounding 11 more, the Turkish General Staff reported. At 8:40 a.m. local time on Feb. 9, a Russian fighter plane on a sortie against the Islamic State erroneously hit a building in the town of Al-Bab that was occupied by Turkish troops, reads a statement on the Turkish Armed Forces website. Russian President Vladimir Putin made a phone call to Turkey’s leader, Recep Tayyip Erdogan, to express his condolences. Both countries have begun investigating the incident. A report by the Russian presidential press service posted on the Kremlin's website reads that Putin, “expressed his condolences over the tragic incident that resulted in the deaths of several Turkish servicemen near the town of Al-Bab.” Putin's press secretary, Dmitry Peskov, told journalists that the Turkish servicemen were killed as a result of mistaken coordinates during the Russian air strike. Peskov added that Russia and Turkey will urgently improve coordination. Army General Valery Gerasimov, chief of the Russian General Staff, spoke on the telephone with his Turkish counterpart, General Hulusi Akaru, to discuss the situation around Al-Bab, and also expressed his condolences. The two generals agreed on closer coordination of their forces in Syria, sources in the Russian Defense Ministry told Gazeta.ru. Syria accuses Turkey “Russian bombers were flying a sortie to destroy Islamic State positions near the town of Al-Bab,” said a statement by the Russian Defense Ministry's department for information and mass communications. “The [two countries'] chiefs of general staffs have agreed on closer coordination of joint operations, and on exchanging information about the situation on the ground.” Are Russia’s SS-21 missiles in use in Syria against Islamic extremists? Syrian government troops approached Al-Bab from the east on Feb. 6, and prior to that, Turkish troops jointly with Syrian opposition forces had blocked the city from the north. Rami Abdul Rahman, chairman of the opposition Syrian Observatory for Human Rights, said Al-Bab found itself under siege after pro-government forces had blocked the road linking it to Rakka, the Syrian citadel of the Islamic State, in the early hours of Feb. 6. The Turkish troops with their local allies are unofficially competing against Syrian government troops over who will beat the other side to entering Al-Bab, said Vladimir Isayev, a professor at the Institute of Asian and African Countries at Moscow State University. This may transform into a serious conflict, with the opposing sides fighting each other rather than the Islamic State, said Isayev. They have been on different sides of the barricades since the beginning of the Syrian conflict. The Syrian government has repeatedly accused Turkey of aiding and abetting terrorism, describing the Turkish troops involved in Operation Euphrates Shield as occupiers of Syrian territory. There is not yet an agreement on who will storm Al-Bab, and how. Turkish Deputy Prime Minister Numan Kurtulmus said in late January that Ankara would not cede control over the city to Damascus after its liberation. On Jan. 8, Russia and Turkey launched its first joint operation outside Al-Bab, with the two countries' warplanes staging coordinated strikes on Islamic State positions. Turkey to take Al-Bab The operation to seal off Al-Bab would not have been possible without a prior clear-cut agreement on who will control which part of the city, said Colonel (retired) Viktor Murakhovsky. The chiefs of the Russian and Turkish general staffs met and agreed on this, not to mention there were a number of lower-level meetings between operations officers. Apart from conducting joint air strikes in Syria's Aleppo province, Russia and Turkey exchange military intelligence. Yuri Mavashev, head of the political department at the Center for Modern Turkish Studies, said that Moscow and Ankara had earlier reached an agreement on Al-Bab eventually coming under Turkish control. The latest incident will not affect Moscow's strategic relationship with Ankara, said Vladimir Sotnikov, director of the Russia East-West Center. He has no doubts that Turkey will establish control over Al-Bab following the city's liberation. “Let us recall what happened in November 2015 when the Turks shot down a [Russian Sukhoi Su-24 bomber], allegedly by mistake,” said Sotnikov. “Russia could have kept reminding Ankara about that incident, but we were above this, so Erdogan and Putin managed to re-establish good personal relations; at Turkey's request, mind you.” Sotnikov added that Turkey very much needs Russia at the moment. Ankara has been having serious problems with its NATO partners, the burden of unresolved domestic political disagreements is piling ever higher, and the country is in dire need of support in its continuing fight against the Islamic State. According to official reports, at least 60 Turkish servicemen were killed in the six months of the military operation in the north of Syria. The Feb. 9 report by the Russian presidential press service also mentions decisions made at the Syrian peace talks in Astana, Kazakhstan: “The sides confirmed their readiness to actively promote the Astana and Geneva Syrian settlement processes.” A joint Russian, Turkish, and Iranian group was set up in Astana on Feb. 6 to monitor the current ceasefire in Syria. First published in Russian in Gazeta.ru
Довольно интересная статья, и даже не смотря на то что там балом правят роботы у них не все так гладко как кажется. Искусственный интеллект вновь демонстрирует свое могущество: хедж-фонды, которые используют алгоритмы, выходят в лидеры рейтингов эффективности, что, тем не менее, делает математиков и программистов главными компонентами успешного инвестирования. В топ авторитетного ежегодного рейтинга лучших управляющих менеджеров хедж-фондов, составленного LCH investments (инвестирует в другие хедж-фонды и входит в Edmund de Rothschild Group), вошли DE Shaw, Citadel и Two Sigma. Все три компании используют так называемые «систематические стратегии» — общепринятый термин для обозначения стратегий принятия решений с минимальным участием человеческого фактора. Ненулевая предсказуемость рыночных колебаний выявляется количественно путем статистической обработки больших объемов наблюдений за совместным поведением рыночных инструментов. ai-news.ru/2017/02/upravlyaemye_komputerom_hedzh_fondy_vyshli_v_lidery.html
NEW YORK (Reuters) - Jeffrey Runnfeldt has left Citadel LLC due to a consolidation of the Chicago-based hedge-fund firm's stock-picking divisions, spokesman Zia Ahmed said.
On New Year's Eve, everyone around the world was talking about the Syrian city of Aleppo. It seemed that the leaders of the EU countries did not have anything else to worry about than to hypocritically worry about the hardships local residents experienced thanks to Bashar Al-Assad.
Текст: Почему среди нобелевских лауреатов по экономике нет миллиардеров ( The Mathematical Investor )
Согласно рейтингу наиболее успешных менеджеров хедж-фондов 2016 года по версии журнала Institutional Investor's Alpha, восемь из десяти самых богатых трейдеров используют квантитативные методы. Половина из 25 самых богатых менеджеров хедж-фондов — «кванты». В рейтинг вошли менеджеры таких фирм, как Renaissance Technologies, D.E. Shaw, Two Sigma, Millennium, Citadel and Schonfeld. Ни одна из этих фирм не использует «умную бету» или факторное инвестирование. Ни одна из этих фирм не применяет теории лауреатов Нобелевской премии по экономике, таких как Джеймс Тобин, Юджин Фам или Роберт Шиллер, и им подобные. Все они полагаются исключительно на сочетание математики и вычислительной техники. Основы факторного инвестирования Рассмотри...
NEW YORK (Reuters) - Kevin Turner has departed Ken Griffin's Citadel LLC less than a year after he joined as chief executive officer of the firm's market-making division, a spokesman said on Friday.
NEW YORK, Jan 27 (Reuters) - Kevin Turner has departed Ken Griffin's Citadel LLC less than a year after he joined as chief executive officer of the firm's market-making division, a spokesman confirmed to Reuters Friday.
We see the forensic "finger prints" all over the economic and financial data that the Federal Reserve through a proxy likely Citadel Capital (or the Fed's CBOE Volume Options Agreement) has highly likely been buying the US ...
The base protects the Russian capital from ballistic missile attacks. The Don-2N radar system comprises individual ultra-high frequency radars placed at each of its corners for an early warning of a possible attack on Moscow. The system, which is constantly in a state of full alert, is operated 24 hours a day. It can engage ICBMs at a range of 3,700 km (2,299 miles) and is run by an Elbrus-2 supercomputer. RT LIVE http://rt.com/on-air Subscribe to RT! http://www.youtube.com/subscription_center?add_user=RussiaToday Like us on Facebook http://www.facebook.com/RTnews Follow us on Twitter http://twitter.com/RT_com Follow us on Instagram http://instagram.com/rt Follow us on Google+ http://plus.google.com/+RT Listen to us on Soundcloud: https://soundcloud.com/rttv RT (Russia Today) is a global news network broadcasting from Moscow and Washington studios. RT is the first news channel to break the 1 billion YouTube views benchmark.
Regular readers remember how, when we first reported around the time of our launch eight years ago that central banks buy stocks, intervene and prop up markets, and generally manipulate equities in order to maintain confidence in a collapsing system, and avoid a liquidation panic and bank runs, it was branded "fake news" by the established financial "kommentariat." What a difference eight years makes, because today none other than the WSJ writes that "by keeping interest rates low and in some cases negative, central banks have prompted some of the most conservative investors to join the hunt for higher returns: Other central banks." To be sure, nothing that the WSJ reports is news to our readers, who have known for years how central banks overtly, in the case of the BOJ, PBOC and SNB most prominently, and covertly, as the infamous "leave no trace behind" symbiosis between the NY Fed and Citadel, however we find it particularly enjoyable every time the financial paper of record reports what until only a few years ago was considered "conspiracy theory", and wonder what other current "fake news" will be gospel in 2020. Meanwhile, for those few who are still unfamiliar, this is how central banks who create fiat money out of thin air and for whom "acquisition cost" is a meaningless term, are increasingly nationalizing the equity capital markets. As the WSJ puts it "these central banks care relatively little about whether such investments make profits or losses—though they can matter politically—because they can always print more of their currency. So risk is less important, analysts say." And since risk was no longer part of the equation, leaving only return, central banks started buying stocks. “When yields started to get really low and closer to zero in 2014, we decided to start equity investments,” said Jarno Ilves, head of investments at the Bank of Finland, who said he plans to increase his allocation to stocks. But if you think the farce is bad now, wait until next year. According to a recent study by Invesco on central- bank investment which polled 18 reserve managers, some 80% and 43% of respondents to questions on asset allocation said they planned to invest more in stocks and corporate debt, respectively. Low government-bond returns were behind the moves to diversify, said 12 out of 15 respondents, while three declined to answer. So between central banks outbidding each other to buy "risky" assets with "money" that is constantly created at no cost, very soon all other private investors will be crowded out but not before every stock is trading at valuations that even CNBC guests won't be able to justify. The good news is that instead of focusing on Ultra High Net Worth clients, a desperate for revenue Wall Street can just advise central banks on which stocks to buy. The shift has significant implications for markets and the global economy, analysts say. Many central banks are hiring outside managers to handle the nontraditional assets in their portfolios, presenting an opportunity to a financial industry struggling with stagnant revenue growth. “We see more and more appetite by central banks for riskier strategies,” said Jean-Jacques Barberis, who manages central-bank money for Amundi, Europe’s largest asset manager. The bad news, is that as more people realize that a free "market" now only exists in textbooks, and that Soviet-style central planning is the only game in town, confident in price formation will evaporate, in turn pushing even more market participants out of the quote-unquote market, until only central banks are left bidding on each other's otherwise worthless stock certificates. At the same time, efforts to invest reserve funds more broadly mean that more markets will be subject to what some critics describe as central-bank distortion, as large and often price-insensitive buyers run the risk of driving up prices and reducing prospective returns for other market participants. For virtually all central banks, however, the grotesque central planning shift of the past decade means that instead of engaging in monetary policy, the world's central banks are now activist hedge funds, who are focused first and foremost on "investment management": The South African Reserve Bank’s growing piggy bank drove it to switch “from being a liquidity manager to focusing on investment management,” said Daniel Mminele, its deputy governor. In the third quarter of 2016, global foreign-exchange reserves totaled $11 trillion, according to the International Monetary Fund, up from $1.4 trillion at the end of 1995. But in the world of central bank hedge funds, no other bank comes even remotely close to the (publically-traded) Swiss National Bank, which has taken risky investing to a whole new level. In 2013, the SNB opened a branch in Singapore to manage its Asia-Pacific assets, which as of 2015 include emerging-market equities and Chinese government bonds. It was a necessity, since the SNB now manages a mammoth 645 billion franc ($643 billion) in foreign reserves, a pile that grew as the bank tried to push down the value of its currency in a bid to fight deflation and help exporters. In 2009, equities only made up 7% of the SNB’s reserves, four years after it started buying them. Now they are 20%, including investments of $1.7 billion in Apple Inc., $1.08 billion in Exxon Mobil Corp., and $1.2 billion in Microsoft Corp., according to third-quarter Securities and Exchange Commission filings. Having bought hundreds of billions in equities carries risks even for central banks, if only on paper: in 2015, the SNB booked a loss of 23.3 billion francs, when officials stopped maintaining a ceiling on the value of their currency. As the currency jumped by as much as 22% against the euro, the value of their foreign assets fell. Last year, it offset those losses with a 24 billion-franc profit, as its equity investments paid off. Others did not fare quite as well: "the Czech National Bank started buying stocks in June 2008 just before the financial crisis. The subsequent stock market crash wiped out a third of its equity investment that year, then roughly 2.5% of its total reserves." * * * By now it is common knowledge that central banks openly intervene in markets, the most vivid and recent example of which is the BOJ, which as of this moment owns two-thirds of all Japanes ETFs... ... and at the current rate of expansion, within a few years the world's monetary authorities who are tasked with "financial stability", will have acquired a majority of the world's equity tranche, effectively nationalizing it. We bring it up in light of recent ridiculous allegations that "Russia hacked the US elections" - we wonder, will the liberal press blame the USSR after it dawns upon the world's intrepid press that while it was busy comparing the Obama and Trump crowds, the world's greatest wealth transfer was taking place right below everyone's nose.
With storm clouds already building above the hedge fund industry, which as reported last night posted deplorable results in 2016 as only 32% of fundamental and quantitative funds outperformed their benchmarks according to JPM data - the worst performance this decade - leading to the largest redemption requests since the financial crisis, as over $100 billion was withdrawn from the industry last year, the latest shock to hedge fund investors, already displeased with underperforming the S&P for years, is the realization that they also pay for many if not all hedge fund expenses, resulting in substantial payments over and above those envisioned by the conventional 2 and 20% model. The reason for their confusion and/or anger is simple: as Reuters points out, some of the more prominent hedge funds such as Citadel LLC and Millennium Management LLC charge clients for such costs through so-called "pass-through" fees, which can include everything from a new hire's deferred compensation to travel to high-end technology. And it all adds up with investors often paying more than double the industry's standard fees of 2% of assets and 20 percent of investment gains, which in light of recent performance has already infuriated countless investors leading to a historic outflow from active to passive managed funds. Clients of losing funds last year, including those managed by Blackstone Group LP's Senfina Advisors LLC, Folger Hill Asset Management LP and Balyasny Asset Management LP, likely still paid fees far higher than 2 percent of assets. Other funds, which at least made money, such as Millennium, the $34 billion New York firm led by billionaire Israel Englander, charged clients its usual fees of 5 or 6% of assets and 20 percent of gains in 2016, according to a person familiar with the situation. The charges left investors in Millennium's flagship fund with a net return of just 3.3 percent. Clients of other shops that made money, including Paloma Partners and Hutchin Hill Capital LP, were left with returns of less than 5 percent partly because of a draining combination of pass-through and performance fees. In some cases the pass-throughs fees have been truly egregious, and nowhere more so thatn for Ken Griffen's Citadel, which recently settled accusations it was frontrunning its clients using various HFT scheme. The $26 billion Chicago hedge fund charged pass-through fees that added up to about 5.3 percent in 2015 and 6.3 percent in 2014, according to another person familiar with the situation. Charges for 2016 were not finalized, but the costs typically add up to between 5 and 10 percent of assets, separate from the 20 percent performance fee Citadel typically charges. And considering that Citadel's flagship fund returned 5% in 2016, far below its 19.5% annual average since 1990, it means investors likely ended up with nothing. As Reuters notes, in 2014, consulting firm Cambridge Associates studied fees charged by multi-manager funds, which deploy various investment strategies using small teams and often include pass-throughs. Their clients lose 33% of profits to fees, on average, Cambridge found. In recent years the number has been far greater due to even more subdued returns. Surprisingly, the report found that funds would need to generate gross returns of roughly 19 percent to deliver a 10 percent net profit to clients. In other words, in a world in which single-digit Hedge Fund returns are becoming the norm, when one nets out all the expenses, investors end up with nothing. * * * To be sure, this pass through structure is nothing new, and investors have for years tolerated similar charges; but they did so because of high net returns. However, due to ongoing performance lately, LPs are getting angry. Defenders of the expenses, which can be used to cover any costs, from bar tabs, to private jet fees, to bonuses, say they are necessary to keep elite talent and provide traders with top technology. They said that firm executives were often among the largest investors in their funds and pay the same fees as clients. Citadel has used pass-through fees for an unusual purpose: developing intellectual property. The firm relied partly on client fees to build an internal administration business starting in 2007. But only Citadel's owners, including Griffin, benefited from the 2011 sale of the unit, Omnium LLC, to Northern Trust Corp for $100 million, plus $60 million or so in subsequent profit-sharing, two people familiar with the situation said. Meanwhile investor frustration is showing. According to a 2016 survey by consulting firm EY, 95% of investors prefer no pass-through expense. The report also said fewer investors support various types of pass-through fees than in the past. "It's stunning to me to think you would pay more than 2 percent," said Marc Levine, chairman of the Illinois State Board of Investment, which has reduced its use of hedge funds. "That creates a huge hurdle to have the right alignment of interests." Precisely, which is also why investors pulled $11.5 billion from multi-strategy funds in 2016. Redemptions for firms that use pass-through fees were not available. "High fees and expenses are hard to stomach, particularly in a low-return environment, but it's all about the net," said Michael Hennessy, co-founder of hedge fund investment firm Morgan Creek Capital Management. Unfortunately for many hedge funds, the "net" is shrinking with every passing year, which is why most hedge funds have bet their careers on 2017 as the make or break year as a result of what they hope will be a surge in stock "dispersion." If it does not happen, the Netflix sequel of Billions may as well be called Millions.
Print section Print Rubric: Recent legal cases raise big questions about America’s financial markets Print Headline: Not with a bang Print Fly Title: American financial regulation UK Only Article: standard article Issue: The 45th president Fly Title: Not with a bang Location: NEW YORK Main image: 20170121_fnp505.jpg THIS week, Credit Suisse and Deutsche Bank became the latest banking giants to finalise multi-billion dollar settlements with American authorities over misdeeds in the mortgage market in the run-up to the financial crisis. But other, less publicised settlements have hissed out of the waning Obama administration like a series of slow punctures: with Moody’s, a leading credit-rating agency; with Citadel Securities, a critical component of America’s equity-trading system; and ...
Print section Print Rubric: The drama of the transition is over, and the new president’s team is largely in place. Now for the drama of government Print Headline: A helluva handover Print Fly Title: The Trump administration UK Only Article: standard article Issue: The 45th president Fly Title: A helluva handover Location: WASHINGTON, DC Main image: 20170121_FBP001_0.jpg HOLED up in Trump Tower, the New York citadel he seems reluctant to leave, Donald Trump detected a tsunami of excitement in the national capital before his inauguration on January 20th. “People are pouring into Washington in record numbers,” he tweeted. In fact the mood in Washington, DC, where Mr Trump won 4% of the vote on November 8th, was more obviously one of apathy and disdain for his upcoming jamboree. Even the ...
Larry Elder was born in Los Angeles and grew up in the city's Pico-Union and South Central areas, Elder attended Washington Preparatory High School and later graduated from Crenshaw High School and earned his B.A.. in political science in 1974 from Brown University. He then earned his J.D. from University of Michigan Law School in 1977. After graduation, he worked with a law firm in Cleveland, Ohio, where he practiced litigation. In 1980, he founded Laurence A. Elder and Associates, recruiting attorneys. While he was a lawyer in Cleveland in the late 1980s, Elder began to host a topic-oriented television show on PBS affiliate WVIZ produced by Dennis Goulden. "I auditioned for and got a television show on PBS, which I hosted for six years. I can't say I had a plan. I literally picked up the phone and talked my way into getting this audition on PBS and they hired me. They just happened to be looking for a cohost." In the early 1990s, the show's name was retitled The Larry Elder Show and moved to the local Fox Network affiliate WOIO and cable TV. Goulden and Elder won the Ohio Cable Television Association's "Best Program Series Award" in 1992 for their work on the show, which lasted until Elder moved back to Los Angeles in 1994. Between 2000 and 2001, Elder hosted the court series Moral Court, distributed by Warner Brothers Television. In September 2004, he began the television version of The Larry Elder Show, which was dropped on April 12, 2005, owing to low ratings. Elder was profiled by 60 Minutes and 20/20 and served as replacement for Geraldo Rivera on CNBC’s Rivera Live while Rivera was on vacation. He was a host of the PBS program National Desk, including the segment "Redefining Racism: Fresh Voices From Black America," for which he won an AEGIS Award of Excellence, a Telly award, and an Emerald City Gold Award of Excellence. Elder also won a Los Angeles Area Emmy Award in 2000 for his KCAL-TV News special Making Waves – LAUSD. He has played himself on the sitcoms Spin City and The Hughleys. He is a columnist with Creators Syndicate. Elder's newspaper and online column is carried by Investor's Business Daily, World Net Daily, Townhall.com, Jewish World Review and David Horowitz's Front Page Magazine and The Atlasphere. From 2002 to 2007, Elder's show was nationally syndicated by ABC Radio Networks and its news-talk network, ABC News & Talk. After Citadel Broadcasting took over most of ABC's radio operations in 2007, syndication of Elder's show was discontinued in favor of Mark Levin, and the show reverted to a local show in August of that year. Elder was one of the rotating talk hosts auditioning for the slot vacated by the now-canceled Imus in the Morning on MSNBC. His audition was on May 7 and 8, and Elder was said to be openly pursuing the permanent position. However, the job went to Joe Scarborough instead. https://en.wikipedia.org/wiki/Larry_Elder
(Reuters) - Citadel Securities, the market-making arm of billionaire hedge-fund manager Ken Griffin, has agreed to pay $22.6 million to settle charges that it misled customers about the way it priced...
Last May we reported that, after years of railing against Citadel's dominant position at the intersection of HFT trading and retail orderflow - Citadel was recently found to be the largest private US trading venue - Federal authorities were investigating the market-making arms of Citadel LLC and KCG Holdings looking into the possibility that the two giants of electronic trading are giving small investors a poor deal when executing stock transactions on their behalf. As a reminder, Citadel is so big and its own private stock-trading platform is so large that, if it were an official exchange recognized by the Securities and Exchange Commission, it would one of the largest registered exchanges in the United States - bigger than Nasdaq. Citadel Execution Services, the firm’s wholesale market-making unit, recently executed 35% of all trades by retail investors in U.S.-listed stocks. It was this retail trading giant that authorities were probing, and specifically looking at internal data concerning the firms’ routing of customer stock orders through exchanges and other trading systems, to see whether they are giving customers unfavorable prices on trades in order to capture more profit on the transactions. In other words, the DOJ is looking into whether Citadel is frontrunning its clients, something we have claimed for years. So what would happens if the DOJ did find what has been obvious to most market participants for years, namely that Ken Griffin's firm was frontrunning retail orderflow fore years? As we summarized at the time, if authorities do move ahead, they would be marching forcefully into the debate over high-speed trading. Critics of HFT, such as this website, have alleged that firms with the fastest trading technology are using speed to manipulate stock prices, giving investors a raw deal. The industry counters that its technology delivers cheaper and more transparent trades to investors. It also delivers guaranteed profits to itself, because while on one hand Citadel is a massive market-maker, responsible for the biggest portion of retail flow traffic, on the other it happens to be the most leveraged hedge fund in the world in terms of regulatory to net assets. * * * Or maybe nothing at all. Because fast forward to today, when without much fanfare at all, Citadel announced it would pay $22.6 million to settle allegations that it "misled clients about pricing trades", a euphemism for it was frontrunning its clients. The Securities and Exchange Commission, soon to be run by a former deal lawyer who was particularly close to Goldman Sachs, said in a statement on Friday that Citadel, without admitting or denying the findings, had agreed to pay $5.2m disgorgement of ill-gotten gains, plus interest of $1.4m, in addition to a $16m penalty. The SEC found precisely what we had said all along: that the company's business unit handling retail suggested to its broker-dealer clients that it would internalize retail orders to provide the best price, but it used algorithms that failed to perform the task from 2007 to 2010; i.e. Citadel was actively trading against the best interests of its clients, and adverse in its own best interests. "These two algorithms represented a small part of Citadel Securities' internalization business, but they nevertheless affected millions of orders placed by retail investors because of Citadel Securities' large role in that market," said Robert Cohen, co-chief of the SEC enforcement division's market abuse unit. Citadel, which has since discontinued use of the algorithms, said in a statement Friday that it takes legal compliance "very seriously." Today, Citadel Securities resolved an issue related to the adequacy of certain disclosures from late 2007 to January 2010. We take very seriously our obligations to comply fully with all laws and regulations. As the market leader we are committed to providing superior service and execution quality to our clients each and every day. To those who want to see a Citadel internalizer algo in action, we recommend you read the following article by Nanex' Eric Hunsader, who explains the entire process: "Retail Trades Disadvantaged by Direct Feeds Internalizers buy at the direct feed price, sell to retail at the SIP feed price."
В четверг открылась очередная ежегодная встреча членов Бильдербергского клуба. Среди 133 гостей, собравшихся на этой неделе в австрийском городке Тельфс-Бюхен, 21 политик. В их числе – министр финансов Великобритании Джордж Осборн...