Howard Lederer on Poker and Hedge Funds

Lederer: The highest compensated hedge fund managers, and I think number 1 was Paulson.  I think he might be the brother of Hank Paulson.  And he had made his money, I think it was like, some scary, 3 point something billion, which is his compensation last year from fees and bonus, and they have just sort of said in the article, well, he made a lot of money betting against credit.  I’m sure betting is the [IB] and various other, you know, collateral [lies], debt obligations, but I was thinking, you know, for him to make that kind of money, he was making huge bets against these things, and there were people, and maybe some of them were banks, but I’m sure that there were, you know, hedge funds that were on the other side of those trades, and so, you know, and you essentially had, you know, I’m sure for a good portion of these trades that he made that he won on, there was someone exactly on the other side of that trade, but, wait a second, the public’s paying 20 plus 2 fees to be a part of that bet.  I mean, that’s just a massive negative expectation game for the investor in the hedge funds, and, you know, particularly when you talk about sort of macro directional trading, you know, I certainly have my doubts about the value of paying 20 plus 2 to big hedge fund managers that are making his bets that way.

The Poker Professor draws similarities between winning at poker and hedging investments.

California wildfires death toll climbs to 50

Firefighters in California are still struggling to contain several wildfires nearly one week after they broke out.

(Photo by Elijah Nouvelage/Getty Images)
Politics & Current Affairs
  • Hundreds of people are still missing after three wildfires spread across Northern and Southern California last week.
  • 48 of the 50 deaths occurred after the Camp Fire blazed through the town of Paradise, north of Sacramento.
  • On Tuesday night, a fourth wildfire broke out, though it's mostly contained.
Keep reading Show less

Too much sleep results in cognitive decline, researchers find

We know the dangers of too little sleep. Now for the other side of the story.

Photo: Vladislav Muslakvo / Unsplash
Surprising Science
  • Western University researchers found that sleeping over eight hours per night results in cognitive decline.
  • Oversleepers suffer similar difficulties on certain cognitive tests as those who sleep under seven hours.
  • Not all the news is bad: One night of oversleeping results in a cognitive boost.
Keep reading Show less

Russian reporters discover 'tortured' orcas and belugas jammed in offshore pens

Protected animals are feared to be headed for the black market.

(VL.ru)
Politics & Current Affairs
  • Russian news network discovers 101 black-market whales.
  • Orcas and belugas are seen crammed into tiny pens.
  • Marine parks continue to create a high-price demand for illegal captures.
Keep reading Show less