Wednesday links: alpha disappearance


Speaking of megacap catalysts, Justin Lahart and E.S. Browning at
discuss how the buyout boom has put a floor under large cap stock prices.

Eddy Elfenbein at Crossing Wall Street examines the disparate performance of various indices since year-end 1999.

Felix Salmon and Jesse Eisinger do a point-counterpoint thing on the riskiness of the derivatives market.

This seems like an ill-conceived idea. Blackstone plans to use “fair value” accounting. (via

Sonya Morris at looks at some bottoms-up calculations on the market’s valuation.

Wanfeng Zhou at with more on $2 sterling.

Post-Sallie Mae are the banks now in play? (via

Brett Steenbarger at TraderFeed believes traders should ban the word “should” from their vocabularies.

Curtis M. Faith at Way of the Turtle agrees with Dr. Brett and notes that the “market is the only truth.”

Jeff Miller at A Dash of Insight on finding an edge appropriate to your time frame.

MarketBeat on gas prices and inflation trends.

CXO Advisory Group reviews research on the value of candlesticks in market timing.

Chad Brand, Kevin Kelleher, Adam Warner and MarketBeat on the state of Yahoo! (YHOO).

Are defensive stocks too expensive? (via FT Alphaville)

Is the credit default swaps (CDS) market rife with insider dealing? (via

Are activist hedge fund managers the “saviors of modern capitalism”? (via

Has alpha “essentially disappeared” from the hedge fund industry? (via

Are the “majority of hedge funds selling beta at the price of alpha”? (via All About Alpha)

Is white collar crime being over-criminalized? (via

Who is the largest commercial landowner in the U.S.? (via Big Picture)

Did you know The Stalwart is back?

Media critics are lining up to take their shots at the inaugural issue of Portfolio. (via

Get ready for a flood of song re-makes by the original artists. (via New York Times)

Thanks for checking in with Abnormal Returns. Your feedback is always appreciated.


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