Dropping Knowledge

Illinois Teachers’ Retirement Fund Playing With Fire

December 19, 2011

Already a poorly performing and underfunded pension fund, Illinois’ Teachers’ Retirement System is doubling down on incompetence by putting a full third of its assets into high-risk securities. According to Crain’s Chicago Business: Gunning for bigger returns exposes the plan to the possibility of bigger losses, further jeopardizing the pensions of 362,121 former and current […]

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Stock Market Volatility for the Everyday Investor

August 10, 2011

As you probably know, the stock market has been a bit volatile in the last couple of days.  And, there is good reason for investors to be wary, because speculation and uncertainty are driving these recent waves.  Why?  Well, where everyday investors really don’t have the resources to take advantage of volatility, hedge funds and […]

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Can Hedge Funds Deliver as they Grow?

March 31, 2011

Hedge funds, by nature, are a risky investment proposition.  Nevertheless, as the market recovers, hedge funds are recovering with it.  Here is a good article from Reuters that shows how as hedge funds grow, their ability to better serve their clients is in danger. Hedge funds need to be flexible to adequately move its holdings in […]

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Dropping Knowledge: What is Proxy Fraud?

March 26, 2011

Companies need to obtain a shareholder vote to elect directors and for various other corporate transactions (like reorganizations/mergers).  These votes must be cast at the annual meeting.  It is impossible to collect all the votes in person, companies send proxy statements to obtain votes for shareholders.  Because of the potential for abuse with the proxy […]

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Uncertainty Surrounding Municipal Bonds

March 23, 2011

Municipal Bonds are securities that are issued by state and local governments to fund the governmental unit’s general fund (a “general obligation bond”) or some sort of special project (rebuilding a town’s city hall).  These bonds are secured by the municipality, and are basically mini-versions of U.S. Treasury Securities, albeit more risky.  So, when we […]

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Can I Retire? – Stock Loss Blog Mission Statement

March 21, 2011

Through fifty or so posts, I’ve discussed a number of investment and corporate governance related concepts trying to keep investors informed about buyouts, fiduciary duties, investment vehicles, etc.  It wasn’t until I read this article that the reason for this blog really dawned on me.

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Dropping Knowledge: What is an ETF?

March 12, 2011

Lately, I’ve been seeing a lot of commercials about “ETFs” and how companies will invest your money safely in ETFs.  So, what is an ETF?  ETF is short for an “Exchange Traded Fund” which, according to Bloomberg is: a basket of securities that track an index such as the Standard & Poor’s 500 Index. ETFs, […]

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Just Say No: Family Dollar Rejects Takeover Offer

March 5, 2011

Earlier, I wrote about the “poison pill” as a defense for a hostile takeover.   The NY Times Dealbook is reporting on the precursor to a possible hostile takeover, with Family Dollar rejecting a friendly takeover bid from Nelson Peltz’s Trian Group, a hedge fund (as explained here).  Basically, Peltz contacted Family Dollar’s board with […]

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Airgas/Air Products Views

February 25, 2011

Here is a compilation of views on the Airgas/Air Products case.  Excellent in depth analysis, I especially like the Bebchuk vs. Lipton and the Board’s decision to “Just Say No.”

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What is a “Poison Pill”?

February 24, 2011

As promised, here is a post about what is referred to as a “poison pill.”  Takeover jargon is filled with fun terms like “poison pill” and “white knight” and “shark repellent.”   These terms are so colorful mostly because they describe boring contractual provisions and esoteric corporate governance concepts.  A “poison pill” is formally known as […]

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