google released an ngram viewer for their book database

When I was an analyst, I used build my own network. I’d spot names in magazines where someone was quoted about a company and call them — that’s part of doing fundamental research.

Dan Chung, CEO, Fred Alger, remarking on how, back in his day, they didn’t rely on expert networks or outside consultants. No, they called people quoted in trade magazines themselves, asked all those probing questions, and walked uphill, in the snow, to school, both ways. Chung is the son-in-law of the gentleman behind the eponymous firm: via Marketwatch

Steve Cohen has had among the highest returns in the industry….Insiders in the business for a long time suspected that his special sources amounted to privileged information. The debate amongst insiders was, “Was the special information on the right side of legality or the wrong side?” But I think it was a pretty common view that it was close to the edge….

When you have somebody who doesn’t appear to have that readily identifiable edge, who nonetheless makes much higher returns than other people, you wonder.

Sebastian Mallaby, author of More Money Than God. He went on to share that “in the past, successful investors constructed their own expert networks,” just like Dan Chung, which he attributed to the master networking skills of those such as Julian Robertson, when who you knew was the currency, and those that were known were former executives and outside of the circle of those normally considered insiders. So if what Julian did was ok, why won’t Mallaby afford Steve Cohen the same safe-harbor? Is it any different than a service which will connect anyone else to former executives and others outside of the circle of those normally considered insiders? After all, it’s hard to see a difference in kind between what Julian and Steve are described as having done. The interview merely insinuates. It does not specify: via LA Times update – this was also posted as a comment on the LA Times blog-piece, but they seem to have removed it.

The McClellans might have thought that they could conceal their illegal scheme by having close relatives make illegal trades offshore. They were wrong.

Robert S. Khuzami, enforcement director for the SEC, commenting on a specific insider trading scandal involving the general misbehavior of consultants at Deloitte who misappropriated and tipped material non-public information to trade for their and their relatives benefit: via NYT

I just yeah, I was just gonna say he is one of our, you know, top guys I who’s been known as being fairly accurate.

Firm Employee-3, remarking on CC-1 and his particular predictive power: via SEC Complaint against Don Chu

On the spot. All depends on the person. It, some guys willing to talk, some are not….I’m nervous.

It’s my pleasure to assist you. Certainly will set up these meetings for you while you come over then. As always, hope to assist you to make $$ in the Market.

Don Ching Trang Chu

The whole concept of expert networks is a bit of a smokescreen here because if you think about it, it’s impossible to be an analyst on Wall Street unless you have an expert network.

James Kinnucan, Broadband Research, remarking on the media’s association of expert networks with an expanded insider trading investigation by the SEC: Interview by David Faber on CNBC. Kinnucan, of the fresh faced eager beaver fame.

http://www-tc.pbs.org/video/media/swf/PBSPlayer.swf

Watch the full episode. See more Mark Twain Prize.

The soft patch is behind us. We have a little more momentum. Employers are getting a bit more optimistic about the outlook and don’t need to cut costs like before.

Jonathan Basile, an economist at Credit Suisse: via Bloomberg

The rich are always going to say…just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you. But that has not worked the last 10 years, and I hope the American public is catching on.

Warren Buffet: via Bloomberg

The Pimco Bravo fund, short for Bank Recapitalization and Value Opportunities, will acquire commercial and residential mortgage loans and other debt, according to a prospective investor who asked not to be named because the capital raising is private. Pimco plans to work with a loan servicer to renegotiate the terms of the acquired debt directly with creditors

Bloomberg News on Pimco’s upcoming launch of a distressed mortgage fund

Much of the data pertaining to past economic performance available in today’s electronic databases differs from what was originally reported. What was initially reported was frequently incorrect or incomplete, and has since been revised and updated based on new information. In order to understand and create models of how economies and financial markets behave, however, economists often need to know what data was available to the public and to policy makers at a given point in time.

–Paraphrase of Katrina L Stierholz, Research Information Officer and Director of Library and Research Information, Federal Reserve Bank of St. Louis, presenting What Old News Tells Us That Data Does Not: The Uses of News Reports in Monetary Policy Research: via Center For Research Libraries

He heard one of them say, “I’m not even French.”

Wes Anderson: via UT Analecta

the wine sits and waits for us in my cellar!

Co-Portfolio Manager 1, emailing Dr. Benhamou, named co-conspirator in the latest insider trading scandal who was affiliated with an unnamed entity paid by FrontPoint “substantial fees…for which Benhamou worked as a consultant so that the portfolio manager and others could consult with experts in the healthcare sector”: SEC Complaint

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