Preview

Business Writing Trend Analysis

Powerful Essays
Open Document
Open Document
1894 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Business Writing Trend Analysis
123 41th Avenue West
Vancouver, British Columbia, V1V 1V1
Phone: 123.456.7890 ABS
CONSULTANTS

September 28, 2011

Mr. James Dimon, CEO
J.P. Morgan Chase & Co.
270 Park Avenue,
New York, NY 10017
Subject: New market for hedge funds

Dear Mr. Dimon:

It is a pleasure for ABS Consultants to be working with J.P. Morgan Chase & Co. As follow-up to our initial conversations, we have considered various trends occurring within the financial arena, and have identified one trend specifically within the space of alternate investments that would most benefit your firm. The concept underlying this trend is the lack of accessibility to hedge funds for non-accredited retail investors, and through the implementation of the forthcoming proposed structure, we are confident J.P Morgan Chase with be able to provide added value to both its clients and its investors.

Hedge Fund Market: The Trend

From the inception of the first hedge fund in 1949 by A.W. Jones, skepticism has surrounded this investment vehicle. Over recent years however, the benefits of diversification have caused a wider breadth of investors to look past their mystique and gain reasonable insight into the investment alternative that has been attracting some of the most affluent of investors for well over 50 years. Now, as mutual funds prove to be by comparison quite inefficient, and a reversion to general stock picking proves difficult with current market turbulence, more and more of the investing public are looking to alternate vehicles. This trend is quickly becoming resolute. Credibility for this is drawn from the massive purchases of mortgage-backed securities in 2007-2008, valued at $8.91 trillion in 2009 even after recessionary levels of write-offs had occurred. Furthermore, with market activity steadily globalizing2, opportunities created by capturing such a trend are incalculable.

Hedge Funds: The Structure

Hedge funds


Bibliography: 1 Asian Development Bank, “The US Housing Market Crisis and Its Aftermath.” Freddie Mac 2009, 16-September: 35. 2 Prasad, Eswar S. et al. “Effects of Financial Globalization on Developing Countries: Some Empirical Evidence.” International Monetary Fund 2003, 9-Septeber: 7-8. 3 Sherman, Lynn. Hedge Funds Statistics 101. 2000, 15-July. 2011 25-September. http://www.forbes.com/2000/07/15/feat.html 4 Yahoo Finance. (2011) J.P. Morgan Chase & Co. (JPM). http://ca.finance.yahoo.com/q/bs?s=JPM&annual 5 Moonesawmy, Dunny P. Hedge Funds vs Mutual Funds. 2011, 18-May. 2011 26-September. http://blogs.reuters.com/fundshub/2011/0as/18/hedge-funds-vs-mutual-funds/
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Case 10 8 Ellie Enterprise
    • 1080 Words
    • 4 Pages

    Case 10 8 Ellie Enterprise

    This consist of 10 high- yield hedge funds consisting of both private and public stocks that use leverage and derivative instruments to maximize the returns. Although, there is a portion of funds consisting of public stocks; the portion that is made up of private stocks would cause to characterize these as an alternative investments.…

    • 1080 Words
    • 4 Pages
    Better Essays
    Read More
  • Best Essays

    Wk 6 Subprime Mortgage Crisis Final Team A Paper
    • 2391 Words
    • 7 Pages

    Wk 6 Subprime Mortgage Crisis Final Team A Paper

    Subprime mortgages are generally granted to borrowers who cannot obtain conventional mortgages due to insufficient or delinquent credit histories. These borrowers may be forced to take interest-only loan, which have lower monthly payment but are very difficult to pay off in the end. Problems with mortgage financing are the generally accepted cause of the financial meltdown that occurred between 2007 and 2008 (Gorton, 2009). The Subprime Mortgage Crisis, or "mortgage mess" or "mortgage meltdown," was caused by a precipitous rise in home foreclosures that started in 2006 and spiraled out of control in 2007 and 2008. The excessive use of subprime lending during the housing bubble caused an unprecedented foreclosure fallout, the effects of which caused credit markets as well as global and domestic stock markets to face a major financial crisis (Mayer, 2008). The goal of this paper is to address the subprime mortgage crisis, the effects prior to and after the crisis, and discuss who were the biggest players affected by this crisis. Finally, Team A will provide several concepts learned during the course of this class, which may help ensure that something similar does not happen again in the future.…

    • 2391 Words
    • 7 Pages
    Best Essays
    Read More
  • Powerful Essays

    MGMT 520 Midterm
    • 11734 Words
    • 33 Pages

    MGMT 520 Midterm

    The U.S. financial crisis has not gone unnoticed in the international world. The impact has been worldwide. The value of securities tied to real estate fell, which damaged financial institutions globally. New rules regarding appraisers, appraisals, and bank oversight have gone into place, but not in time to save many investors and foreign banks from huge losses. Many people think that this crisis could have been avoided if better regulations had been in place. Some feel that the U.S. bank/lending and borrowing ethical standards…

    • 11734 Words
    • 33 Pages
    Powerful Essays
    Read More
  • Good Essays

    Kmart & Sears Essay
    • 1017 Words
    • 3 Pages

    Kmart & Sears Essay

    A: Hedge funds, historically, were more interested in the buying and short selling of defaulted or near-default bonds within a few weeks or months. This strategy was more of a short-term, exit-focused strategy. Now, however, some hedge funds are becoming more interested in the restructuring and long-term controlling of attractive assets. Hedge funds’ stakes in these companies are then transformed into equity from the arising new entity. Private equity is split up into Venture Capital and Leveraged Buyout funds, with a little made up of mezzanine funds. LBO companies buy publicly traded companies that are experiencing inefficiencies from costly regulation of being publicly traded and the incentives of managers and shareholders. The growing overlap is correlated between the LBO side of private equity and the more recent trend in hedge funds of acquiring large stakes in mature, failing companies in order to have a longer-term return.…

    • 1017 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Kmart, Sears and ESL: How a Hedge Fund became one of the World’s Largest Retailers
    • 864 Words
    • 4 Pages

    Kmart, Sears and ESL: How a Hedge Fund became one of the World’s Largest Retailers

    - In the early year’s hedge funds active in the LBO arena would try to buy defaulted or near default bonds and then resell them in weeks or months later at a profit. But in recent times hedge funds have started to hang onto the distressed investments through the whole bankruptcy process, leaving them with substantial and sometimes controlling stakes in the companies. When the companies come out of bankruptcy the hedge funds claims are transformed into equity in the new entity.…

    • 864 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    How The United States Differ From The 2008 Financial Crisis?
    • 1314 Words
    • 6 Pages

    How The United States Differ From The 2008 Financial Crisis?

    In return, housing prices dropped “following a period of easy money and excess demand” (27). The problem became that more and more unqualified debtors defaulted and money turned into more houses. The price of houses started to decrease and caused homeowners paying the mortgage to be overpaying as the price of their house fell. These families left their mortgage and more money turned into houses for financial institutions. “Mortgage backed securities held by financial firms, foreign investors, and governments lost most of their value” (Kharusi and Weagley, 27).…

    • 1314 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Kmart ESl Sears
    • 679 Words
    • 2 Pages

    Kmart ESl Sears

    1. Describe recent trends in the hedge fund and private equity industry and the growing overlapbetween the two. A: Hedge funds, historically, were more interested in the buying and short selling of defaulted ornear-default bonds within a few weeks or months. This strategy was more of a short-term, exit-focused strategy. Now, however, some hedge funds are becoming more interested in therestructuring and long-term controlling of attractive assets. Hedge funds’ stakes in thesecompanies are then transformed into equity from the arising new entity. Private equity is split up intoVenture Capital and Leveraged Buyout funds, with a little made up of mezzanine funds. LBOcompanies buy publicly traded companies that are experiencing inefficiencies from costly regulationof being publicly traded and the incentives of managers and shareholders. The growing overlap iscorrelated between the LBO side of private equity and the more recent trend in hedge funds ofacquiring large stakes in mature, failing companies in order to have a longer-term return…

    • 679 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Types of Business Writing
    • 416 Words
    • 2 Pages

    Types of Business Writing

    Firstly, I would like to thank Wydade Consulting Services for the reliable support on behalf of Broadworth General Hospital. My name is Randee Morrow and I am representing Miriam Hopkins, Human Resources Director. Per Ms. Hopkins’ request, I am organizing a seminar to cover topics such as sexual harassment and unlawful discrimination in the work place. The seminar will familiarize employees with said issues and prepare them, should they ever encounter such situations.…

    • 416 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Ice Curling Research Paper
    • 1398 Words
    • 6 Pages

    Ice Curling Research Paper

    Curling is a sport in which players slide stones on a sheet of ice towards a target area which is segmented into four concentric rings. It is related to bowls, boules and shuffleboard. Two teams, each of four players, take turns sliding heavy, polished granite stones, also called rocks, across the ice curling sheet towards the house, a circular target marked on the ice.[2] Each team has eight stones. The purpose is to accumulate the highest score for a game; points are scored for the stones resting closest to the centre of the house at the conclusion of each end, which is completed when both teams have thrown all of their stones. A game may consist of ten or eight ends.…

    • 1398 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Madison Street Capital Acquisition
    • 451 Words
    • 2 Pages

    Madison Street Capital Acquisition

    The world of financial investment banking is very competitive. The established players have grown powerful in size and the world economy is unpredictable at best. With the recent US Economic downturn and the exit of Great Britain from the European Union, investment firms are struggling to stay afloat in a volatile world economy. This is what makes Madison Street Capital's accomplishments impressive. Recently the M&A Advisor group announced that Madison Street Capital is a finalist for multiple awards at the November 9th Gala in New York City. The nominations serve as recognition for all of Madison Street Capital's success this year.…

    • 451 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Yale University Investments Office: August 2006
    • 1180 Words
    • 5 Pages

    Yale University Investments Office: August 2006

    Diversification is not the only reason that the Yale Investments Office pursues investments in nontraditional assets. Another reason is Swensen’s view that these markets offer more opportunities for active managers to add value. The use of outside, fundamentally-oriented active fund managers has been a key factor in the investing success of the Yale Endowment, accounting for more than half of its performance advantage between 2001 and 2006.2 The Yale Investments Office views its relationships with outside managers as long-term partnerships, and carefully structures compensation so that manager interests are aligned with those…

    • 1180 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Missing Link: Operations Improvements
    • 2813 Words
    • 12 Pages

    The Missing Link: Operations Improvements

    The Missing Link: Operations Improvements Enhance Portfolio Performance No. 1 in a Series Chandresh Iyer Head of Global Custody and Investment Services Citi Chito Jovellanos President & CEO forward look, inc. The coming decade will be a difficult one for institutional asset management. A vastly more crowded market for investment and trading ideas, more constraints on leverage, demands for greater transparency, changing compliance rules and more risk-averse investors will ensure that the heady days of relatively easy alpha and benchmark-beating strategies will be much harder to sustain. Will this be the “new normal”?…

    • 2813 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Solution Manual for Fundamentals of Investing 12th Edition by Smart
    • 6077 Words
    • 21 Pages

    Solution Manual for Fundamentals of Investing 12th Edition by Smart

    Bonds 2. Convertible Securities 3. Preferred Stock D. Mutual Funds E. Exchange-Traded Funds F. Hedge Funds G. Derivative Securities 1. Options 2. Futures H. Other Popular Investments Concepts in Review III.…

    • 6077 Words
    • 21 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Research Paper Investment Banking
    • 2382 Words
    • 7 Pages

    Research Paper Investment Banking

    References: Baron, D., (1982). A model of the demand for investment banking advising and distribution services for new issues. Journal of Finance, 37, 955-976.…

    • 2382 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    strat man
    • 13251 Words
    • 54 Pages

    strat man

    The late 1990s created an illusion for a lot of people who invested in the markets, including financial advisers, who witnessed extraordinary rates of revenue growth tied to investable assets. This bonanza made many of them feel brilliant, especially those who had the wisdom to convert to a fee-based or fee-only model. However, the market correction at the turn of the century and the modest returns projected for the foreseeable future have made revenue growth— at least organic growth—more of a challenge. Several conditions are conspiring against advisers who still hope for rapid revenue growth:…

    • 13251 Words
    • 54 Pages
    Powerful Essays
    Read More

Related Topics