Pension funds engage in short-term trading, or "beauty contest" investing as Keynes called it.
While some hedge funds engage in campaigns to replace executives of the companies they own, Mr. Einhorn is often quiet when dissatisfied.
Funds engage in much end-of-quarter window-dressing, buying stocks that have performed the best in that quarter and dumping laggards.
The problem, as the Federal Deposit Insurance Corporation FDICC) and the Pension Benefit Guarantee Corporation PBGCC) have found, is that banks and pension funds engage in herd-like behaviour.In this section Afta Doha A leaky pool Down but not out Deal or no deal?
Both funds engage in a strategy known as long-short equity, where managers have the latitude to bet on both the up and the down of a given stock.
Because these hedge funds engage almost exclusively in stock markets, as opposed to buying up debt or loaning money, their returns are often more exposed to the broad market performance.
Bank of America, accused by the New York attorney general, Eliot Spitzer, of letting a hedge fund engage in improper mutual fund trading, said yesterday that it planned to reimburse investors who lost money from the transactions.
(Reuters Civil Charges Filedd Against a Broker The Securities and Exchange Commission said yesterday that it had filed civil charges against a broker at the Trautman Wasserman Company, accusing him of helping hedge funds engage in abusive trading of mutual funds.
Phrases such as the "brightest minds" (prominent in earlier strategies but criticized by some for sounding rather elitist) have been ditched, and replaced with a sharper focus on the "diversity of people we fund, engage with and employ".
Because Alan Greenspan created a very high real cost of leverage earlier this year, only a tiny proportion of hedge funds engage in the sort of activity that might create real problems of counterparty defaults.
Donors also need to use their influence to ensure that the non-state actors it funds engage in a meaningful way with the state rather than simply playing lip service to engagement.
