Customer Connections - The Heart of the Hedge

By Chris McMahon

While hedge funds are better known for seeking alpha than philanthropy, many channel their generosity through innovative non-profit organizations and foundations. They just do not usually talk about it.

With the economy limping, charities are concerned. The 2008 Study of High Net Worth Philanthropy found that between 2005 and 2007, charitable giving increased for nearly all high net-worth households, except for those with $5 million or more in income. The study said charitable giving dropped 9.7 percent, to $80,249, for those households in 2007 from $88,845 in 2005, after adjusting for inflation. That was before the recession.

While many fear charitable giving will decline even more in the face of the global economic downturn, hedge-fund sponsored philanthropies appear to be weathering the storm better than most. Philanthropy professionals say it is due in large part to the active participation by hedge fund leadership in such organizations.

<< Read the story at CMEGroup.com >>

Options at the Crossroads

Options at the Crossroads Note: This feature length story by Chris McMahon originally appeared in the February 2010 issue of SFO Magazine. Link to original @ SFO Magazine As U.S. regulators come to grips with the public perception that they have been asleep at the wheel while financial markets careened into chaos and lawlessness, there is legitimate concern that regulated markets, which have performed remarkably well, could be become victim to oversteering. Public outrage is growing about seemingly rampant insider trading rings, enormous compensation packages for firms that have received bailouts and a string of hedge fund frauds and Ponzi schemes. Those issues, in conjunction with a new presidential administration and recently appointed heads at the Securities and Exchange Commission and the Commodity Futures Trading Commission have prompted a thorough reconsideration of what kind of markets Americans want and the consumer protections and regulation they need.

The Year of the Ox: Is It a Bull for China?

Note: This feature length cover story by Chris McMahon originally appeared in the November 2009 issue of SFO Magazine. Link to original @ SFO Magazine “At this critical juncture of countering the financial crisis, I called for perseverance, as perseverance will lead us to final victory. The dark cloud of the financial crisis will disperse. Let us work together for a more splendid future.” The Year of the Ox: Is It a Bull for China? ~ Chinese Premier Wen Jiabao In Chinese astrology, 2009 is the year of the ox, a symbol of wealth created by strength, hard work and perseverance. Those born under the sign of the ox are thought to be quiet, patient and determined. That’s an auspicious sign for China’s stimulus plan and newly resurgent economy. But those born under the sign are also thought to be stubborn, eccentric and quick to anger. As the global economic slowdown approaches the end of its second year, China’s economy appears to have pulled out of the downturn and to have don

Building Bridges

By Chris McMahon As a result of the proposed mandate to centrally clear standardized over-the-counter contracts, market participants are seeking new technology that makes matching and clearing trades faster and easier. Proposed regulatory changes in the over-the counter (OTC) derivatives markets may create new challenges for large financial institutions. Many OTC market participants have front- and middle-office systems that are built for the bi-lateral trading in the cash markets. Many of these systems cannot centrally clear OTC positions where the counterparty is always the exchange. Where a centrally cleared position is marked to market daily - and in most cases the profit and loss of a position is booked daily - an OTC position's profit and loss is typically only booked at expiration. << Read the story at CMEGroup.com >>

Chris McMahon, MSJ

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