Finance is like one big movie. There are times when all is snug and cozy, and everyone is smiles and giggles. However, the most anticipated and fun parts of any movie are the action sequences. Well, we have good blow ups around here, albeit a trite expensive. In what might be the most expensive fireworks display ever, trader Brian Hunter blew up hedge fund Amaranth. Cost = $6 Billion. Newspapers expand out the number and multiply with the local currency to get a really big scary number, but you can do that yourself e.g. (6,000,000,000*45.53 Rs). Here is the story! Go to news.google.com, and search for "Amaranth" for more juice.
FAQ :
Whats a hedge fund?
Its a firm that trades the financial markets for a profit. Unlike a mutual fund which cannot do whatever it wants with investors money, a hedge fund can take huge risks. Thus, it has a potential to make a lot of money. As has been seen, it can also lose a tonne!
Thursday, September 21, 2006
Monday, September 18, 2006
Power and Presence
So, the whole of last week was spent improving my "Power" and "Prescence". It is one of the many steps on my way to become slick and insinc..errm..smooth and sophisticated. There were 2 sets of people who came in -
1) Firstly, there were actors from The Actors Institute who came in to give us a quick image makeover. We were bundled into groups and made to do some role playing. Then, each and every little thing I said or did or appeared to say or appeared to do, was analyzed, dissected and basically torn apart. I was told that I use a lot of filler words - I feel, I think, basically, essentially, the point is etc. etc. At a deeper psychoanalytic level it appears that I don't like silence. From now on, I have to practice just saying a couple of words, and then staring intently at the other persons face.
2) Secondly, there was this marketing woman who used to work with "The Pitchdoctor", a guy who helps doctor sales pitches, so that countries can win rights to host Olympics and stuff like that. So, she imparted us gyan on how to ace "touchpoints", i.e. situations where there is potential to have your ass on fire if you don't talk and walk properly. I got imparted all kinds of vague fundas about body language, eye contact, tone of voice, gesturing and movement.
Its scary how subtle changes in tone and body language can drastically alter the context and meaning of a message. Sarcasm, anger, agitation, enthusiasm, friendlines are all incorporated at a subtle subconscious level, and much of the message is this stuff. Your actual words do not really matter that much! We had these examples where we had to say the same sentence in 2-3 different ways, with variations in tone, gesture and eye contact, and they came out so differently.
I somehow feel that all girls figure out this stuff almost as soon as they are born. So, they are free to wreak emotional havoc on poor guys, who have almost no idea what is going on. Its only after courses like this do they realize the true nature of their situation. That melting voice. Those soft eyes. Those fleeting looks. You dont fool me now!
Anyway, moving on. Quite interestingly, it also turns out that there are 4 types of people.
Type 1 : The Expressive - Like me. Keeps talking. Thinks in vivid descriptive form. Hates detail. Loves big fancy dreams.
Type 2 : The Driver - Get the job done. Type A heart attack case. Obsessed with closure.
Type 3 : The Feeler - Very relationship oriented. Hates conflict. Loves emotion. All those people who say "I don't feel the same way about you now, like I did", and go into high drama.
Type 4 : The Analytic - The detail obsessed person. All those people who describe holidays like this - Day 1 Place A Did XYZ Day 2 Place B Did X1Y1Z1 Day 3 Place C Did X2Y2Z2.
And, there was a lot more. You have to pay me for that. Nah, just kidding, I just dont want to type any more.
Anyhow, it was fun. A lot better than sitting in the office and reading 300 page annual reports of companies that make caskets and medical equipment (yes, there is one that makes both!!), and looking for 'misvaluations' (thats like the most misused term ever in Finance. Oh, there is another one 'alpha'. Which means 'risk free returns' a.k.a. free money, of which there is none obviously. Of course, none of my readers are likely to have got the context, but its ok. :). Just trust me.)
1) Firstly, there were actors from The Actors Institute who came in to give us a quick image makeover. We were bundled into groups and made to do some role playing. Then, each and every little thing I said or did or appeared to say or appeared to do, was analyzed, dissected and basically torn apart. I was told that I use a lot of filler words - I feel, I think, basically, essentially, the point is etc. etc. At a deeper psychoanalytic level it appears that I don't like silence. From now on, I have to practice just saying a couple of words, and then staring intently at the other persons face.
2) Secondly, there was this marketing woman who used to work with "The Pitchdoctor", a guy who helps doctor sales pitches, so that countries can win rights to host Olympics and stuff like that. So, she imparted us gyan on how to ace "touchpoints", i.e. situations where there is potential to have your ass on fire if you don't talk and walk properly. I got imparted all kinds of vague fundas about body language, eye contact, tone of voice, gesturing and movement.
Its scary how subtle changes in tone and body language can drastically alter the context and meaning of a message. Sarcasm, anger, agitation, enthusiasm, friendlines are all incorporated at a subtle subconscious level, and much of the message is this stuff. Your actual words do not really matter that much! We had these examples where we had to say the same sentence in 2-3 different ways, with variations in tone, gesture and eye contact, and they came out so differently.
I somehow feel that all girls figure out this stuff almost as soon as they are born. So, they are free to wreak emotional havoc on poor guys, who have almost no idea what is going on. Its only after courses like this do they realize the true nature of their situation. That melting voice. Those soft eyes. Those fleeting looks. You dont fool me now!
Anyway, moving on. Quite interestingly, it also turns out that there are 4 types of people.
Type 1 : The Expressive - Like me. Keeps talking. Thinks in vivid descriptive form. Hates detail. Loves big fancy dreams.
Type 2 : The Driver - Get the job done. Type A heart attack case. Obsessed with closure.
Type 3 : The Feeler - Very relationship oriented. Hates conflict. Loves emotion. All those people who say "I don't feel the same way about you now, like I did", and go into high drama.
Type 4 : The Analytic - The detail obsessed person. All those people who describe holidays like this - Day 1 Place A Did XYZ Day 2 Place B Did X1Y1Z1 Day 3 Place C Did X2Y2Z2.
And, there was a lot more. You have to pay me for that. Nah, just kidding, I just dont want to type any more.
Anyhow, it was fun. A lot better than sitting in the office and reading 300 page annual reports of companies that make caskets and medical equipment (yes, there is one that makes both!!), and looking for 'misvaluations' (thats like the most misused term ever in Finance. Oh, there is another one 'alpha'. Which means 'risk free returns' a.k.a. free money, of which there is none obviously. Of course, none of my readers are likely to have got the context, but its ok. :). Just trust me.)
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