From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .
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Many things have to go right in the short term to delay the eventual resolution, if you will. The new firm focused on distressed CDO investing. Human history ultimately is the history of ebbs and flows of wealth, and the ability to preserve eiesis over time requires a very proactive approach.
Interconnectedness in markets—now higher than it has ever been—has been created by disruptive new technologies, which aren’t very well understood. It was a very specific bet on a very specific set of outcomes that is not panning out. It creates perverse incentives because it breaks the price mechanism, which is the most important signal in a free-market economy. For the best Barrons.
A compromise will only delay the problem, because it’s a problem of excessive indebtedness and you can’t solve a balance-sheet problem without solving it, except by delaying it.
A spokesman explained that the main reason is to protect against a crisis scenario. Developed markets that are the repositories of most of global financial wealth have had de minimis demand for physical gold.
By various fiduciary and criminal standards, we should have seen a tremendous number of prosecutions and successful lawsuits. This financial system is completely unsustainable.
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So you will never have the Philadelphia problem. You can’t get a fair price; they’re unique, whereas gold is ubiquitous. Too big to fail is now too bigger to fail. We’ve detected you are on Internet Explorer. But the liquidation is what governments don’t want to allow. Although there’s faith in the U. Simon Mikhailovich knows a thing or two about financial weapons of mass destruction.
There is a global market for it. Our specialty is structured credit, and credit derivatives are mispriced because the rates are at zero and are eidesia to potential significant disruptions. It’s absolutely disgraceful that ‘s consequences haven’t been the same as, let’s say, savings and loans in the s. Recently, the Swiss National Bank announced that it holds its reserves in diverse locations around the globe. Unquestionably, things were done that were illegal in many cases, certainly grossly negligent.
Investors need to examine old ideas about diversification, and to realize that both bonds and stocks have become much eeidesis highly correlated than ever.
Many countries have gone through financial disruptions and had their currencies devalued and had all sorts of economic problems, even in the last 20 years.
Treasuries, and they ended up being paid 70 cents on the dollar for their Treasury holdings. When you disconnect greed and fear, greed runs rampant.
If you take a chance and fail, you have capitall take the consequences of your failure. With a wealth of experience in structured credit, he co-founded Eidesis Capital in with Michael Sollott, after they completed a buyout of the collateralized-debt-obligation business of St.
That creates distortions, misallocation of capital, and mismanagement of risk, and we are seeing it time and time again.
The other is over-the-counter credit derivatives, which are basically grossly under-reserved insurance. Investors should look for alternative sources of uncorrelated assets or assets whose value is less correlated, as opposed to simply looking at the price of those assets.
We have caoital seen an example of that.
Eidesis Capital LLC
That raises another problem with financial technology—re-hypothecation—where banks make money by lending out collateral. We came up with a vehicle that enables investors to do the same thing. You may not like the price, but it is never going to be a rip-off. They destroy money, not lives. One is to protect the value of part of the portfolio, and the other is to have access to liquidity during market disruptions when you can profit by being able to buy when others do not have access to liquidity.
If anybody is an expert in safe-haven assets, it is the Swiss National Bank. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www.
People overestimate their previous experience and they underestimate future experience…. MF Global’s clients thought they owned commodities. Despite the fact that JPMorgan Chase was lauded as the most capable risk-management institution, it is facing potentially very large losses.
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My approach is what investors should do to protect themselves from the consequences. The disruptive technologies and government policies have created an extremely highly correlated environment with all financial markets and all financial institutions.
But I try to diversify. Every asset and every dollar that is in custody in a bank, unless specific legal arrangements are made, is re-lent, and as we saw with MF Global and with Lehman, ultimately it is the customer or the investor who bears the counterparty risk. Reserves are essentially hedges or protections, they’re monies or some value that is dapital on the sidelines that can be pressed into service eisesis something happens and you need to rely on these stores of value, for two reasons.
If we step back from everything that is going on in the U.