Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Howdy Ted, This link was placed as related to a recent discussion by others here regarding this organization. There is not necessarily any discussion or information presented, of benefit to either of us. Hopefully, others may benefit from the video. Regards, Catch
Thanks catch for the link. Although I own only a small position in WBMIX, it is always nice to see who is actually managing your money. I wish the Bloomberg folks would have asked more insightful questions, including the obvious ones like how does Whitebox invest, how is it different from other mutual funds, L/S funds and hedge funds, and what role should investing in Whitebox play in a portfolio.
Howdy kevindow, I agree about further questions and a longer discussion time. Too often we find one of these sessions that could be very good; but fall short of a really good interview. Sometimes there are little trinkets of info that help fill in some of the voids or help with a better understanding. Take care, Catch
These are three nerds, put on the spot, national/global TV, sitting awkwardly on unflattering stools, across from two smiling, candy-coated, air-heads (meant in the kindest way).
Did you really expect a Charlie Rose like interview?
Under the circumstances, I thought it was great. They answered every peppered question in a straightforward, intelligent, and insightful way. I agree with kevin...an opportunity to see who is managing your money.
But, yes, I suppose I too am a nerd, and am predisposed to like these guys, since I own WBMIX (thanks to scott).
Reply to @catch22: Hey Catch - The big fella says he sets up trades "with quite a bit of hair on them" and likes to "hold both of the tails." Neither hunter nor trapper, confused here. Could you kindly translate? Video's not bad. Thanks. (Personally prefer transcripts when available for longer pieces. Quicker to skim. However, couch potatos might prefer videos - maybe linking them to a big screen.)
Reply to @Charles: "sitting awkwardly on unflattering stools" Not an easy feat! ... CNN reports one candidate practiced stool-sitting intensely in the days prior to a recent TV debate - having never been in a bar.
Sadly, I am not a qualified student of "wordology" for determination of other's terms, especially with "street terms" regarding investments. Although I am able to express common/general wording (hello, goodbye, please, thank you) in several lauguages; being Spanish, French, Russian and Chinese (if I am having a very good memory day...), and that I am fluent in Canadian (especially the Ontario and British Columbian dialects), I am only able to offer an uneducated, best guess for the investment terms in question,
The big fella says he sets up trades "1. with quite a bit of hair on them" and 2. likes to "hold both of the tails."
1. being perceived with forward strength and potential 2. trading positions relative to using tools, such as options to place positions against an investment position. Tails also has reference to a deviation from the mean/average value that may be indicated when using a candlestick technical chart.
I suspect the fella in question would respond to an email query.
Hank, this is the best you will receive from me in this "tongue in cheek" reply; and knowing I have not had much coffee this Saturday morning.
Others here may have a complete insight into the terms that were used in the video.
Lastly, I will agree that plunking those folks onto those awful chairs would cause me to question the thinking processes of the production group for this program. At the very least, blood flow begins to be reduced in short fashion to the legs, which in turn begins to affect blood pressure and heart rate. Heck, after 10 ten minutes; my thinking processes would be affected from improper blood distribution. I hope one of those 3 protested after the program segment, to tilt and raise one leg to rip loose a most large fart.
Good grief, I've inadvertently led this good discussion board down a path to bathroom humor...granted I'm laughing pretty hard right now...fun with hank and Catch it is.
Definition of 'Haircut' 1. The difference between prices at which a market maker can buy and sell a security.
2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin and collateral levels.
Investopedia explains 'Haircut' 1. The term haircut comes from the fact that market makers can trade at such a thin spread.
2. When they are used as collateral, securities will generally be devalued since a cushion is required by the lending parties in case the market value --- I've gathered elsewhere that if a trader takes a "haircut" that's not good. So having alota hair on it probably implies a safer trade.
Well, that oughta cover it pretty well. Your expert obviously understands haircuts & tails very well. I'll bet he eats, breathes & dreams this stuff! Take care.
Comments
This link was placed as related to a recent discussion by others here regarding this organization. There is not necessarily any discussion or information presented, of benefit to either of us.
Hopefully, others may benefit from the video.
Regards,
Catch
Kevin
I agree about further questions and a longer discussion time. Too often we find one of these sessions that could be very good; but fall short of a really good interview. Sometimes there are little trinkets of info that help fill in some of the voids or help with a better understanding.
Take care,
Catch
These are three nerds, put on the spot, national/global TV, sitting awkwardly on unflattering stools, across from two smiling, candy-coated, air-heads (meant in the kindest way).
Did you really expect a Charlie Rose like interview?
Under the circumstances, I thought it was great. They answered every peppered question in a straightforward, intelligent, and insightful way. I agree with kevin...an opportunity to see who is managing your money.
But, yes, I suppose I too am a nerd, and am predisposed to like these guys, since I own WBMIX (thanks to scott).
My two cents.
It's just hard to put best foot forward in these popular media venues.
Sadly, I am not a qualified student of "wordology" for determination of other's terms, especially with "street terms" regarding investments.
Although I am able to express common/general wording (hello, goodbye, please, thank you) in several lauguages; being Spanish, French, Russian and Chinese (if I am having a very good memory day...), and that I am fluent in Canadian (especially the Ontario and British Columbian dialects), I am only able to offer an uneducated, best guess for the investment terms in question, 1. being perceived with forward strength and potential
2. trading positions relative to using tools, such as options to place positions against an investment position. Tails also has reference to a deviation from the mean/average value that may be indicated when using a candlestick technical chart.
I suspect the fella in question would respond to an email query.
Hank, this is the best you will receive from me in this "tongue in cheek" reply; and knowing I have not had much coffee this Saturday morning.
Others here may have a complete insight into the terms that were used in the video.
Lastly, I will agree that plunking those folks onto those awful chairs would cause me to question the thinking processes of the production group for this program. At the very least, blood flow begins to be reduced in short fashion to the legs, which in turn begins to affect blood pressure and heart rate. Heck, after 10 ten minutes; my thinking processes would be affected from improper blood distribution. I hope one of those 3 protested after the program segment, to tilt and raise one leg to rip loose a most large fart.
Respectfully,
Catch
David, please forgive me.
http://www.investopedia.com/terms/h/haircut.asp
Definition of 'Haircut'
1. The difference between prices at which a market maker can buy and sell a security.
2. The percentage by which an asset's market value is reduced for the purpose of calculating capital requirement, margin and collateral levels.
Investopedia explains 'Haircut'
1. The term haircut comes from the fact that market makers can trade at such a thin spread.
2. When they are used as collateral, securities will generally be devalued since a cushion is required by the lending parties in case the market value
---
I've gathered elsewhere that if a trader takes a "haircut" that's not good. So having alota hair on it probably implies a safer trade.
ALSO: "Tail Risk" http://www.investopedia.com/terms/t/tailrisk.asp
ALSO: "Long Tail" http://www.investopedia.com/terms/l/long-tail.asp
ALSO: "Fat Tail" http://www.fattails.ca/
Well, that oughta cover it pretty well. Your expert obviously understands haircuts & tails very well.
I'll bet he eats, breathes & dreams this stuff! Take care.