Posts Tagged ‘Performance’

Moral Ethics: Performance-Enhancing Drugs of Today’s Ultra-Competitive Office

admin | Friday, July 31st, 2009 | No Comments »
Moral Ethics Performance Enhancing Drugs of Todays Competitive Office Moral Ethics: Performance Enhancing Drugs of Todays Ultra Competitive OfficeEmployees everywhere are doing it. Some are doing it dozens of times a day. Most have it done to them once every eight minutes. Sometimes it’s done face-to-face. Other times it’s done behind the back. It’s done out of habit. It’s done out of pure malice.
Employees everywhere are lying through their teeth.

An Epidemic of Deception

Millions of North Americans are sick and tired of wondering “Am I being lied to?” And for good reason. Stephen Colbert of The Colbert Report coined the term “truthiness” to describe the ever-increasing tendency for people to express concepts or facts that they wish to be true, rather than concepts or facts that they know to be true. More and more, we’re on the receiving end of the “truth improved” and “truthful hyperbole.” Who knows what to believe today?

Believe this: When deception reaches epidemic proportions in society, no one and no place is safe. As in any epidemic, everyone is at risk of being taken advantage of and having their trust betrayed. And it can happen anywhere, including the workplace.

A Bumper Crop of Lies

The workplace isn’t just a location where people come together in the common pursuit of commerce and profits. It’s also a Petri dish for growing a deadly crop of big, bald-faced lies. Any competitive environment where performance dictates success and advancement is a potential breeding ground for mendacity.

Now, it’s not that any one particular workplace is full of especially conniving or devious people. Deception simply comes naturally to all creation:

* Birds will fake injury to lead predators away from nesting young.
* Octopi walk on two tentacles, strutting all gnarly on the sea floor, pretending to be algae (or Jessica Alba’s hairdo in Sin City) to escape their enemies.
* Pint-sized male green frogs lower the pitch of their croaks to sound bigger than they are and scare off rivals. (Hey, it beats working out at the gym!)
* Wolves dress in sheep’s clothing.

Nature’s deceivers are rewarded by longer life — which means more opportunities to reproduce. And while lying may no longer be necessary for human beings to procreate (though it can help in many cases), the spinning of a last-minute yarn to avoid responsibility for not completing a critical project has certainly preserved the quality of many an employee’s work life.

Need a Boost in Performance?

Lies, you see, have become the performance-enhancing drugs for the competition known as life.

Think I’m lying? Well, here’s an analogy. Consider an elite cyclist who’s set to race in the pinnacle of his sport: the Tour de France. If ever there was a competition that’s rife with doping, the Tour is it. In 2006, Ivan Basso, Jan Ullrich and a number of other star riders sat on the sidelines instead of their bike seats after being implicated in a doping investigation. Floyd Landis, the eventual winner, was himself pinned beneath a media microscope when an abnormal epitestosterone-to-testosterone ratio was uncovered in one of two post-podium urine tests. The jury’s still out in Landis’ case, but these sorry examples represent only those riders who were “unlucky” enough to get caught. Others in the field undoubtedly doped away and managed — through luck or better planning — to dupe the testers.

So, here’s our elite cyclist, hitherto clean and sober, preparing to partake in a competition he knows is biased toward dopers. And our hero wants to win. Badly. So badly, in fact, he can already taste the fame, glory and fabulous endorsements that come with wearing the yellow jersey on the podium. What do you think he’ll do? To dope or not to dope?

If he’s human and wants the win badly enough, he’ll opt for doping and its boost in performance. Unless he’s blessed with one-in-a-billion genetics, he must dope to have any hope of winning. Racing clean in a field of dirty competitors means he’ll be lagging the peloton before the race even starts.

The Place Where the Rubber Meets the Road

It’s no different for employees competing in the workplace. Performance matters. It might not be the ticket to fame, glory and fabulous endorsements, but workplace performance is certainly the ticket to advancement, promotions and a bigger paycheck. Poor performance, on the other hand, comes with another set of “rewards.” For most employees, it means stagnation, demotion and an eventual pink slip.

Any competitive environment that is characterized by deception — whether the deception comes in the form of blood doping or bald-faced lies — forces every competitor to use dishonesty if they want to win. A single liar in the workplace, hidden among the cubicles, can be the catalyst that triggers a chain reaction of fibbing, embellishments and wholesale fabrications. Hitherto honest employees, sensing a cheater in their midst, are compelled to “sweeten” their own efforts and accomplishments, lest they be left “lagging the peloton” when it comes time for management’s quarterly performance reviews.

Sweetening performance, however, isn’t the only byproduct of the competitive workplace environment. When the imperative to perform is so high, fibs to cover up shortcomings or mistakes are sure to follow. Deception becomes a Teflon coating, assuring negative perceptions don’t stick. After all, everyone else is doing it, right?

Operating a business today is challenging enough without facing the daunting task of sifting fact from fiction among your prospective and existing employees or co-workers. And employees deserve to compete against each other on a level playing field, free of the performance-enhancing drugs of deception.

It behooves (there’s a word you don’t see often) everyone — regardless of their position in the office hierarchy — to promote an atmosphere of openness and honesty. And everyone can do just that once they understand the reasons why we lie so easily and so often in the workplace. That, however, is the subject of another article.

Stay tuned for “Understanding Why We Lie in the Workplace … Or How The Dog Ate My Profit-and-Loss Statements.”

Conner O’Seanery is a self-admitted serial liar and an expert on detecting deception in any situation. Author of You Won’t Get Fooled at Work Again: 40 Timely Tips for Recognizing Deception in the Workplace and You Won’t Get Fooled Again: More Than 101 Brilliant Ways to Bust Any Bald-Faced Liar (Even If the Liar is Lying Beside You!), O’Seanery is a popular media guest whose insights have been featured on City TV’s Breakfast Television, Global Television’s NewsHour, CBC Radio, Westwood One Radio Network, USA Radio Network and hundreds of radio stations. His books have been featured in the New York Post, National Post, Seattle Times, Toronto Star, Ottawa Citizen and other newspapers. Conner is also a respected speaker who uses a blend of quick wit and well-earned wisdom to entertain as much as inform audiences. To download free excerpts from You Won’t Get Fooled at Work Again and You Won’t Get Fooled Again visit Conner’s website at this site.

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Tags: ethics, performance, enhancement, behavior, conduct

Ethical Performance: Avoiding Managemeng Malpractice

admin | Wednesday, July 29th, 2009 | No Comments »
Ethical Performance Avoiding Managemeng Malpractice Ethical Performance: Avoiding Managemeng MalpracticeBusiness ethics are rare in today’s world of rampant organizational abuse and management malpractice. According to recent surveys, such as the National Business Ethics Survey, more than 50 percent of all employees in the United States observe misconduct or unethical behavior at work, but most of them do not report it because they fear retaliation from management or coworkers.
As reported in Business & Legal Reports, the Gartner Group, Inc., claims, “70 percent of enterprises that do not recognize and minimize employee dissatisfaction will have to fend off legal actions and public relations disasters caused by poor service, poor quality and poor business practices. Enterprise executives, especially those in high-pressure technology and knowledge-based companies, should understand the correlation between employee mistreatment and business disruption.” According to Diane Tunick Morello, Vice President and Research Director at Gartner, “Executives and managers who see their companies engaging in mistreatment of employees should raise a warning flag and begin to quantify and qualify the risks to attracting staff, maintaining service, building a customer base and broadening business. Executives who ignore or downplay the connection between employee mistreatment and business turmoil put their employees, customers, partners and shareholders at risk.” Malpracticing management represents a HUGE RISK that most executives and organizations today don’t fully recognize.

So why does management malpractice and organizational abuse occur so often in today’s organizations, despite the high price? Here are five reasons why it has become so prevalent:

First, people in organizations are, at times, biased, egotistical, narrow-minded, thoughtless, dogmatic, insensitive or otherwise flawed. Okay, so we’re all prone to malpractice management even though we all suffer from it. Yes, which is why it’s going to take a widespread revolution to stop this growing epidemic of management malpractice—it happened to me, so I might as well do it to others.

Second, management is malpracticed because it’s easier, cheaper and faster to malpractice management than it is to well-practice management, especially during times of crisis and extreme change. Tyrannical, authoritarian, command and control approaches to management are always easier, cheaper and faster in the short term but they destroy freedom, creativity, motivation and organizational cultures in the long term. Vigilantly practicing great management principles takes time, effort and commitment; but the pay-off is huge—take a look at the results delivered by Fortune’s most admired companies. Why are they so admired? Because great organizations don’t persist in malpracticing management. When malpractices do creep in, as they always do, they are quickly addressed and eliminated.

Third, because of the heightened stress and strain associated with today’s business environment–extreme complexity, radical change and savvy competition–managers and leaders too often lose their focus on fundamental principles and core values because urgency overshadows importance, hard drives out soft and information obscures interpretation. In other words they get distracted, sidetracked and diverted from one of the things that matters most—i.e., the ongoing motivation, performance, creativity, satisfaction and well-being of their people. A crisis comes along and all of the so-called great management principles and excellent organizational values get thrown out the window or are temporarily ignored in favor of hard-edged, results-at-any-cost management—whatever it takes to get the crisis resolved is a common excuse for management malpractice.

Fourth, people in organizations are continually growing, developing, and, to one degree or another, striving to become more effective, complete and balanced as managers and leaders. Consequently, most managers and leaders are still incomplete and unbalanced in their discharge of management responsibilities—e.g., heart, mind and body are often out of balance or fail to function as a complete whole, either there’s too much rational analysis at the expense of heart-felt empathy or vice versa or there’s too much talk and not enough action or vice versa or too much preoccupation with the short-term at the expense of the long-term or vice versa and so on. Becoming more complete and balanced as a manager or leader is vital to seeing, exposing and preventing management malpractice. Organizational cultures either hasten or hinder managerial and leadership development.

Five, managers and leaders in most organizations don’t take the time or make it a priority to really listen to their employees, discuss management principles that are frequently malpracticed, or develop the managerial talents of their direct reports. They let urgent matters overshadow more important matters.

Management malpractice has become accepted as “standard operating procedure” in far too many organizations today. Sadly, leaders and managers in such organizations are expected to demean, manipulate, deceive, oppress, abuse and injure their people. When they don’t, their employees are surprised. How sick is that? People are becoming increasingly distrustful and cynical about their organizations because too many of their leaders and managers either unconsciously allow or openly foster management malpractice in their organizations and because not enough of their co-workers are willing or able to stand up against it.

Overcoming management malpractice will require more than new laws, regulations, rules, systems, penalties, punishments and remedies, because management malpractice thrives in highly structured and disciplined hierarchies. Only senior executives, middle managers, first line employees, entrepreneurs and professional service providers who develop an awareness to see it, the courage to expose it and a firm resolve to prevent it from happening again and again in the workplace have a chance to eliminate management malpractice in their organizations. Once exposed, management malpractices can never have the same smothering and stifling effect upon you and your organization that they previously had. In fact, ongoing exposure of management malpractices fosters a transparent working environment where individuals, teams and leaders can work together more openly, honestly and collaboratively to prevent malpractice in the future. Time and attention to people–their performance, their satisfaction, their ideas, their motivation, their insights, their sense of meaning and fulfillment, their disappointments, their match with their jobs, their growth and development, their sense of belonging, their contributions, their dreams, their fears, their needs, their desires to create value, their struggles, their weaknesses, their yearnings and strivings, their personal lives, their interactions with coworkers and customers, their teamwork, their results, their well-being — that’s the key to preventing management malpractice in organizations.

Craig Hickman is the author or coauthor of a dozen books on business and management, among them such bestsellers as Creating Excellence; The Strategy Game; Mind of a Manager, Soul of a Leader; and The Oz Principle. After receiving his M.B.A. from the Harvard Business School, he worked in the areas of strategic planning, organizational design, and mergers and acquisitions for Dart Industries and Ernst & Young. In 1985, he founded Management Perspectives Group, a consulting and training firm that helped companies implement the business strategy, corporate culture, and organizational change principles set forth in Creating Excellence and Mind of a Manager, Soul of a Leader. His clients have included: Proctor & Gamble, American Express, Unilever, AT&T, PepsiCo, Honeywell, Amoco, Nokia, and the U.S. government. He has lectured throughout the world for the U.S. State Department as part of its American Participant Program and is currently CEO of Headwaters Technology Innovation Group, a subsidiary of Headwaters Incorporated (NYSE: HW).

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Tags: ethical, performance, index, corporate, organizations

Ethical Performance, Management Malpractice Is A Reality

admin | Thursday, July 2nd, 2009 | No Comments »

ImageTemplate Ethical Performance, Management Malpractice Is A RealityBusiness ethics are rare in today’s world of rampant organizational abuse and management malpractice. According to recent surveys, such as the National Business Ethics Survey, more than 50 percent of all employees in the United States observe misconduct or unethical behavior at work, but most of them do not report it because they fear retaliation from management or coworkers.

As reported in Business & Legal Reports, the Gartner Group, Inc., claims, “70 percent of enterprises that do not recognize and minimize employee dissatisfaction will have to fend off legal actions and public relations disasters caused by poor service, poor quality and poor business practices. Enterprise executives, especially those in high-pressure technology and knowledge-based companies, should understand the correlation between employee mistreatment and business disruption.” According to Diane Tunick Morello, Vice President and Research Director at Gartner, “Executives and managers who see their companies engaging in mistreatment of employees should raise a warning flag and begin to quantify and qualify the risks to attracting staff, maintaining service, building a customer base and broadening business. Executives who ignore or downplay the connection between employee mistreatment and business turmoil put their employees, customers, partners and shareholders at risk.” Malpracticing management represents a HUGE RISK that most executives and organizations today don’t fully recognize.

So why does management malpractice and organizational abuse occur so often in today’s organizations, despite the high price? Here are five reasons why it has become so prevalent:

First, people in organizations are, at times, biased, egotistical, narrow-minded, thoughtless, dogmatic, insensitive or otherwise flawed. Okay, so we’re all prone to malpractice management even though we all suffer from it. Yes, which is why it’s going to take a widespread revolution to stop this growing epidemic of management malpractice—it happened to me, so I might as well do it to others.

Second, management is malpracticed because it’s easier, cheaper and faster to malpractice management than it is to well-practice management, especially during times of crisis and extreme change. Tyrannical, authoritarian, command and control approaches to management are always easier, cheaper and faster in the short term but they destroy freedom, creativity, motivation and organizational cultures in the long term. Vigilantly practicing great management principles takes time, effort and commitment; but the pay-off is huge—take a look at the results delivered by Fortune’s most admired companies. Why are they so admired? Because great organizations don’t persist in malpracticing management. When malpractices do creep in, as they always do, they are quickly addressed and eliminated.

Third, because of the heightened stress and strain associated with today’s business environment–extreme complexity, radical change and savvy competition–managers and leaders too often lose their focus on fundamental principles and core values because urgency overshadows importance, hard drives out soft and information obscures interpretation. In other words they get distracted, sidetracked and diverted from one of the things that matters most—i.e., the ongoing motivation, performance, creativity, satisfaction and well-being of their people. A crisis comes along and all of the so-called great management principles and excellent organizational values get thrown out the window or are temporarily ignored in favor of hard-edged, results-at-any-cost management—whatever it takes to get the crisis resolved is a common excuse for management malpractice.

Fourth, people in organizations are continually growing, developing, and, to one degree or another, striving to become more effective, complete and balanced as managers and leaders. Consequently, most managers and leaders are still incomplete and unbalanced in their discharge of management responsibilities—e.g., heart, mind and body are often out of balance or fail to function as a complete whole, either there’s too much rational analysis at the expense of heart-felt empathy or vice versa or there’s too much talk and not enough action or vice versa or too much preoccupation with the short-term at the expense of the long-term or vice versa and so on. Becoming more complete and balanced as a manager or leader is vital to seeing, exposing and preventing management malpractice. Organizational cultures either hasten or hinder managerial and leadership development.

Five, managers and leaders in most organizations don’t take the time or make it a priority to really listen to their employees, discuss management principles that are frequently malpracticed, or develop the managerial talents of their direct reports. They let urgent matters overshadow more important matters.

Management malpractice has become accepted as “standard operating procedure” in far too many organizations today. Sadly, leaders and managers in such organizations are expected to demean, manipulate, deceive, oppress, abuse and injure their people. When they don’t, their employees are surprised. How sick is that? People are becoming increasingly distrustful and cynical about their organizations because too many of their leaders and managers either unconsciously allow or openly foster management malpractice in their organizations and because not enough of their co-workers are willing or able to stand up against it.

Overcoming management malpractice will require more than new laws, regulations, rules, systems, penalties, punishments and remedies, because management malpractice thrives in highly structured and disciplined hierarchies. Only senior executives, middle managers, first line employees, entrepreneurs and professional service providers who develop an awareness to see it, the courage to expose it and a firm resolve to prevent it from happening again and again in the workplace have a chance to eliminate management malpractice in their organizations. Once exposed, management malpractices can never have the same smothering and stifling effect upon you and your organization that they previously had. In fact, ongoing exposure of management malpractices fosters a transparent working environment where individuals, teams and leaders can work together more openly, honestly and collaboratively to prevent malpractice in the future. Time and attention to people–their performance, their satisfaction, their ideas, their motivation, their insights, their sense of meaning and fulfillment, their disappointments, their match with their jobs, their growth and development, their sense of belonging, their contributions, their dreams, their fears, their needs, their desires to create value, their struggles, their weaknesses, their yearnings and strivings, their personal lives, their interactions with coworkers and customers, their teamwork, their results, their well-being — that’s the key to preventing management malpractice in organizations.

Craig Hickman is the author or coauthor of a dozen books on business and management, among them such bestsellers as Creating Excellence; The Strategy Game; Mind of a Manager, Soul of a Leader; and The Oz Principle. After receiving his M.B.A. from the Harvard Business School, he worked in the areas of strategic planning, organizational design, and mergers and acquisitions for Dart Industries and Ernst & Young. In 1985, he founded Management Perspectives Group, a consulting and training firm that helped companies implement the business strategy, corporate culture, and organizational change principles set forth in Creating Excellence and Mind of a Manager, Soul of a Leader. His clients have included: Proctor & Gamble, American Express, Unilever, AT&T, PepsiCo, Honeywell, Amoco, Nokia, and the U.S. government. He has lectured throughout the world for the U.S. State Department as part of its American Participant Program and is currently CEO of Headwaters Technology Innovation Group, a subsidiary of Headwaters Incorporated (NYSE: HW).

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Tags: ethical, performance, index, corporate, organizations

Financial Disclosures – 5 Tips on What Not to Do

admin | Thursday, September 18th, 2008 | No Comments »

Financial Disclosures

Hedge Fund Disclosure Tips

Financial Disclosures  There are many “how to” articles for hedge fund managers, so here is a list of 5 short tips on what not to do while writing disclosures for hedge fund performance or marketing materials.

  1. Objectivity is a must – writing in a strong positive slant can actually hurt your fund’s image and reputation during a due diligence process
  2. Always work with a compliance consultant, CCO or 3rd party auditing firm on any performance or marketing related materials. If you are not a licensed or recognized legal expert it pays in the long run not to act as one. Even if your hedge fund is a on a tight budget it would pay dividends to invest in wise legal advice for disclosure related tasks and other work.
  3. Never leave more questions than existed before the disclosure was read – when needed refer to a full disclosure resource which is also “compliance approved.”
  4. Do not print disclosures in size 5 font. Publish disclosure language in a close or same size font as the rest of the marketing materials – not only does this prevent looking like you are hiding something but many times disclosures help educate investors in positive ways
  5. Do not write lengthy redundant explanations while a short to point factual disclosure will do. Concise, collectively exhaustive and mutual exclusive are good rules to live by while writing disclosures. Every word and inch of space on your marketing materials is worth thousands of dollars, don’t waste it with redundant sentences or by leaving out key facts and figures.

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Hedge Fund Startup Marketing

admin | Wednesday, September 3rd, 2008 | No Comments »

Hedge Fund Startup

Hedge Fund Startup Marketing Q & A

Hedge Fund Startup Marketing, Hedge Fund Marketing MaterialsQuestion: I understand all the legalities…but at the inception of a hedge fund what kind of material should I have squared away as far as marketing decks and PowerPoint presentations. Value proposition of course, we have pretty tight and a good selling point, what other deliverables should I work towards at this early stage?

Brief Answer: As far as marketing materials go I would make sure you have a 1-2 page quick summary piece of your hedge fund or fund of fund as a whole, within another 1 pager on your holdings – both should be updated monthly. Also it would help to develop a 20-30 page PowerPoint presentation with top notch quality graphics, layout, etc. I would make sure you stress the depth of your team, how you manage both business and portfolio risk and how your returns will be repeatable and defendable due to your consistent investment process. Those are all points that investors look for and qualities your fund must have to really succeed in the long run. Hope these ideas help.

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Hedge Fund Performance in May

admin | Monday, June 30th, 2008 | No Comments »

Hedge Funds in May


Hedge Fund Performance in May

Hedge Fund Performance May Hedge Fund Performance in MayIn May, HFN Hedge Fund Average Aggregate was +2.02%, and the S&P Total Returns Index was +1.30%. The energy sector continued to rise this year with the HFN Energy Sector Average at +4.38% last month. The equity markets’ success seems to have led to the HFN Long/Short Equity Average outperforming the S&P Total Return Index, yielding +2.76.

In regional benchmarks, while hedge funds investing in China and India performed dismally, funds investing in Russia and Brazil boosted the Emerging Markets Average to +2.55%. Hedge funds using the long only strategy have performed poorly this year but improved thanks to the global equity markets, the Long Only Average was %3.41 in May. Investors have shown dissatisfaction with the technology sector through redemptions and liquidations. Total assets in tech sector funds fell 10.89% in Q1 of 2008, yet the Technology Sector Average was one of the best performers in May at 3.46%.

- Richard

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4 Tips on Exploring PR Opportunities To Widen Your Business Reach

admin | Friday, August 24th, 2007 | No Comments »
 4 Tips on Exploring PR Opportunities To Widen Your Business ReachHave you ever wondered why companies less established than yours receive better press than you? Well, the answer may be simple: they get publicity out there now while you’re waiting to grow before making your move. As an entrepreneur or business owner, you need to be realistic about your business, time, budgets, and marketing efforts, but if you think about your business objectively for a moment, you may have a story that an editor/journalist is looking for right now—no matter what size your firm is.

The following tips will help you begin exploring PR opportunities to widen your reach.

1. Know what public relations is.

Public relations is simply the relationship your organization has with the outside world, which includes everyone—friends, relatives, customers, future prospects, competitors, and employees, if you have any. While the relationship you create with your public can have a profound effect on your business, please be aware that all of these people will not immediately make a purchasing decision or change their mind if they only see something once. With public relations, you must be consistent with your message and your actions.

2. Know what public relations is not.

PR is not advertising. The purpose of PR is to inform the public about news and events. You are not selling; you are providing tidbits of information that you are hoping an editor or journalist will see and use for their stories. Editors and journalists hate hearing about promotional offers, for example, so if you have one, consider using advertising instead of PR as your marketing vehicle. Don’t waste a great potential relationship with an editor or journalist in hopes of publicizing a quick promotion. If you do, these professionals will ignore you when you do have real news to report.

3. Have a plan and an angle.

No matter what business you’re in, if you do not have a marketing or PR plan, you will find business more difficult to obtain—and you will probably annoy many editors along the way, too. If you are someone who rushes into things and needs to see immediate results, then publicity is not the right medium for you. Realize that magazines and newspapers have strict editorial calendars, deadlines, and space limitations to respect and they often develop their stories over the course of several months. Also, newspapers and magazines have to report important news stories, which often moves planned stories aside. Keep these parameters in mind as you create your marketing and PR plan. In addition, make sure your publicity has a clear angle of interest to the publication’s readers. If it doesn’t, the editor will probably push it aside. In other words, remember your target market. In this case, it is the readers of that particular publication. Highlight news angles that appeal to their interests. Businesses use Doubet to achieve effective PR to leverage their assets, identify and pitch stories, and showcase their expertise.

Creating a PR plan will ensure that you enhance your business by creating well-received stories, by publicizing your news in the proper format and within the time frame of the publications and ultimately, by establishing strong relationships with the media.

4. Be respectful of an editor’s timing requirements.

Timing is vital. Don’t submit a press release on Monday for an event your business is sponsoring on Tuesday. Editors will ignore you. If a newsworthy occurrence comes out after your event that creates a nice tie-in to your business, that’s OK—your press release can at least mention that your event happened.

If you do want to publicize a newsworthy story linked to your business, make sure you do it early enough so the media can react within their time frame. When contacting media professionals, ask what their deadline is. Never ask when your story will run.

Beth Silver has been providing marketing and business strategies, for more information visit this web to entrepreneurs and small business owner for over 10 years. For more great tips and to sign up for Doubet’s free monthly newsletter, The Target Advocate, also visit this site
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Millennium Partners Hedge Fund | Fund Notes

admin | Wednesday, May 9th, 2007 | No Comments »

Millennium Partners Hedge Fund

Millennium Partners & Israel Englander

Millennium Partners Hedge FundThe following piece on Millennium Partners is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.

__________________________

Resource #1 (6.22.09) Millennium Management veteran Peter Lupoff has founded his own hedge fund firm and plans to launch its maiden offering in August with $100 million.

Lupoff has left Millennium to set up San Francisco-based Tiburon Capital Management, Bloomberg News reports. The new firm will focus on Lupoff’s speciality, distressed debt, investing in companies in or near default, as well as those involved in legal battle, spinoffs or exchange offers. source

Resource #2: (4.1.09) Millennium Management LLC, the hedge fund manager founded by Israel Englander, has hired more than 15 people in Asia since early December, expanding as banks and funds slash jobs, said a person briefed by the company.

Recent hires by the New York-based firm include Singapore- based portfolio managers James Sullivan, David Bijaoui and Thierry Choffel, the person said, asking not to be identified because the information is private. Tripp Kyle, a New York-based external spokesman, declined to comment on behalf of Millennium.

Millennium, which oversees $11.5 billion of assets, is expanding its team as rivals such as Citadel Investment Group LLC, Concordia Advisors LLC, Och-Ziff Capital Management Group LLC, Ramius LLC and Cheyne Capital Management (UK) LLP reduced jobs or closed offices in Asia to control costs and focus on their largest markets.

“Many firms that hired lots of staff last year with bullish expectations have seen assets under management decline and are having to let staff go,” said Mark Williams, a senior analyst at fund of funds manager Alphatraxx (H.K.) Ltd. “It’s a good time for managers with stable or growing assets under management to pick up talent.” source

Resource #3: (2.2.09) New York-based Logik Asset Management recently launched a multi-strategy hedge fund to invest in event driven, merger arbitrage and special purpose acquisition corporations (SPACs).

The Logik Event Fund began trading in September and returned 4% in its first quarter and over 5% in January.

The fund is the brainchild of Douglas Schultz and Daniel Hess, formerly of Soros Fund Management and Millennium Partners, respectively. In early 2007, the pair partnered with Coast Asset Management to manage a portion of an in-house multi-strategy fund. They also managed a dedicated event driven fund for the firm. Last year the two spun off from Coast—with the firm’s blessing, and its backing—to launch their own hedge fund. source

Resource #4: (11.25.08) Millennium Partners LP, the $13.5 billion hedge-fund firm run by Israel Englander, plans to return $1 billion to investors who asked for their cash back by year-end, according to two people familiar with the matter.

The redemptions, equal to 7.4 percent of client assets, would have been higher except the New York-based firm limits redemptions in any quarter, said the people, who asked not to be identified because the information is private. A spokeswoman for Millennium declined to comment.

Millennium lost about 3 percent this year through October, the people said, compared with hedge funds’ average decline of 16 percent, according to data compiled by Hedge Fund Research Inc. Two percentage points of Millennium’s loss were caused by assets frozen in the September bankruptcy of Lehman Brothers Holdings Inc., one of the people said.

“We’re seeing the result of hedge funds’ being subject to the whims of those in asset allocation,” said Adam Sussman, director of research at Tabb Group LLC, a New York-based adviser to financial-services companies. “No fund is immune.” Source

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Kynikos Associates | James Chanos | Hedge Fund Notes

admin | Saturday, October 14th, 2006 | No Comments »

Kynikos Associates

Kynikos Associates | Hedge Fund Notes

Below is our Hedge Fund Tracker Profile for Kynikos Associates and James Chanos.

Resource #1: (2.2.09) Famed short-seller James Chanos told Reuters on Thursday his hedge fund firm, Kynikos Associates, performed well in 2008, but clients still withdrew about 20 percent of his funds’ assets.

Chanos, who profits by betting against companies he expects will fall in value, thrived in a year when a broad range of financial markets tanked. He declined to reveal his fund’s annual performance, but said the firm “had a good year.”

The average hedge fund specializing in short selling returned 25 percent last year, according to data from hedge fund tracking firm Hennessee Group. source

Resource #2: Goldman Sachs MD Marc Spilker wanted to widen his path to the beach at his house in the Hamptons. Unfortunately, his neighbor, Kynikos founder Jim Chanos had a problem with this, since his row of hedges would have to be taken out in order for Spilker’s family to be able to “maximize their beach enjoyment.” Spilker cited a deed that said he could have 15 feet, Chanos produced one that said otherwise. Then this week they went to court to negotiate; Spilker claimed to only want a few feet (i.e. 6-7), Chanos gave it to him and asked for it to be put in writing.
Source

Resource #3: His hedge fund, Kynikos Associates, had put a large slice of its $3bn in assets on a bold punt that shares in the internet gambling sector were about to go into free-fall.
And on October 2, shares in the companies did precisely that as about $5bn was wiped off their value in just a few hours of trading in response to a US Senate decision to introduce tough new laws cracking down on gambling on the web.

It took the industry and the markets, in fact almost everyone except Mr Chanos and his team of traders, by surprise. The consensus view had been that the sector was about to ride higher on a wave of consolidation.
Source

Resource #4: Good afternoon. My name is James Chanos. I would like to take this opportunity to thank the House Committee on Energy and Commerce for allowing me to offer my perspective on the tragic Enron story.

I am the President of Kynikos Associates, a New York private investment management company that I founded in 1985. Kynikos Associates specializes in short-selling, an investment technique that profits in finding fundamentally overvalued securities that are poised to fall in price. Kynikos Associates employs seven investment professionals and is considered the largest organization of its type in the world, managing over $1 billion for its clients.
Source

Resource #5: Kynikos Associates announced today that Jeffrey R. Perry has joined the firm as a Managing Director. Perry will also co-manage the new Kynikos Opportunity Fund along with Kynikos President, James Chanos. Chanos said, “We are very excited to have Jeff join us. Besides augmenting our research capabilities within the existing Kynikos funds, Jeff’s presence, and many years of high level hedge fund experience, will allow us to launch the Kynikos Opportunity Fund, which he and I will co-manage.” The Kynikos Opportunity Fund will have a broad mandate to invest in long and short equities, risk arbitrage, capital selective arbitrage, activist positions, as well as other investment disciplines where the firm believes it has a significant research advantage.
Source

Resource #6: Jim Chanos of New York’s Kynikos Associates was bearish on internet gambling sights long before Senate majority leader Bill Frist “ambushed” the industry with a bill making most internet gambling illegal. Contrary to claims detailed on a website [= Midas Oracle] yesterday, it didn’t take an elaborate scheme of inside information about the Senate’s legislative schedule to tip Chanos off on the dangers to internet gambling. For Chanos, the writing was on the wall, in the online gaming companies’ prospectuses and already built into various state laws.
Source

Resource #7: People keep pointing to the fact that capital spending is great. But they pointed to the same thing in 2000, when the market was tanking even as telecom was booming. We pointed out then that the telecommunications build-out was almost over–and was increasingly focused on projects that didn’t make any sense. Today, whether it’s the 48th planned community in Dubai or the marginal factory in rural China, you’re going to find out that the capital projects in the works don’t make a whole lot of sense either. But there’s a huge lag effect on that. Financial firms are the canaries in the mineshaft, and the laggards are the capital-goods companies.
Source

Resource #8: A deluxious story on Jim Chanos, the short-seller who originally told Bethany McLean to look at Enron (resulting in the Fortune article, “Is Enron Overpriced?” and later the travesty, The Smartest Guys In The Room). It seems he knows the hooker that brought down Eliot Spitzer. While stopping short of accusing Chanos of using Ms. Dupre’s services, the article makes it clear they knew each other.
Source

Resource #9: Jim Chanos, the world’s biggest short-seller, today made an appearance in the enemy camp. Chanos, the president of Kynikos Associates, which has $6 billion invested in bearish bets on the stock market, gave a talk this morning at the Stanford Directors’ College, an annual symposium at Stanford Law School for the directors of public companies.

Chanos provided some insights on what he does, areas of the market where he sees opportunity to short stocks, and how directors ought to react when the find short interest in their stocks rising. Here are a few bullet points from the talk…
Source

Resource #10: Jim Chanos – a top short-selling hedge fund manager and the big man at Kynikos Associates – has been speaking of the evil ones. He told me, ‘There is a great evil in the financial markets. Some of the firms that have failed did not tell the truth about the risks they were facing. They misled everyone. Why did they do it? Oh, they had darkness in their hearts! Evil-doers do evil things. We all know this. We all know that the serpent is waiting for us. We’ve seen the rune stones. Things can only get worse. There will come a time when fire will fill the sky, and Satan’s dark angels, diabolical demons, will rise from the bowels of the earth and devour us! O people, repent! It’s not too late. I will change as well. I won’t short any more. O Jesus, please believe me. Have mercy on me. I SHALL SHORT NO MORE!!!’
Source

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Producer Price Index | Producers Price Index Commodities

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Producer Price Index

Producer Price Index Commodities

Producer Price Index. A family of indexes, prepared by the US Bureau of Labor Statistics (BLS), that measures the average change over time in the selling prices received by domestic producers of goods and services. PPI measures price change from the perspective of the seller in contrast to other measures, such as the Consumer Price Index (CPI), that measure price change from the purchaser’s perspective. Sellers’ and purchasers’ prices may differ due to government subsidies, sales and excise taxes, and distribution costs.

BLS releases over 10,000 PPIs for individual products and groups of products each month. Producer Price Indexes are available for the products of virtually every industry in the mining and manufacturing sectors of the US economy. New PPIs are gradually being introduced for the products of industries in the transportation, utilities, trade, finance, and services sectors of the US economy.

Producer Price Index data are widely used by business and government for three major purposes:

(a) Economic indicators — PPIs capture price movements prior to the retail level. Therefore, they may foreshadow subsequent price changes for businesses and consumers. The President, Congress, and the Federal Reserve employ these data in formulating fiscal and monetary policies.

(b) Deflator of other economic series — PPIs are used to adjust other economic time series for price changes and to translate those series into inflation-free dollars. For example, constant-dollar gross domestic product data are estimated using deflators based on PPI data.

(c) Basis for contract escalation — PPI data are commonly used in escalating purchase and sales contracts. These contracts typically specify dollar amounts to be paid at some point in the future. It is often desirable to include an escalation clause that accounts for increases in input prices. For example, a long-term contract for bread may be escalated for changes in wheat prices by applying the percent change in the PPI for wheat to the contracted price for bread.

Note: In 1978 BLS changed the name of this price measure from Wholesale Price Index (WPI) to the current term. However, no change was made to the basic index methodology, and the continuity of the price index data was unaffected.

For more information, see: BLS Web Site

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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MSCI All Country World Index Composite Holdings | Performance

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MSCI All Country World Index

MSCI All Country World Index Composite

Morgan Stanley Capital International’s market capitalization weighted index composed of companies representative of the market structure of 47 Developed and Emerging Market countries in the Americas, Europe/Middle East, and Asia/Pacific Regions. The index is calculated without dividends or with gross dividends reinvested, in both US Dollars and Local. Countries include:


Argentina

Hungary

Philippines

Australia

India

Poland

Austria

Indonesia

Portugal

Belgium

Ireland

Singapore

Brazil

Israel

South Africa

Canada

Italy

Spain

Chile

Japan

Sri Lanka

China (Free)

Jordan

Sweden

Colombia

Korea

Switzerland

Czech Republic

Malaysia

Taiwan

Denmark

Mexico

Thailand

Finland

Netherlands

Turkey

France

New Zealand

United Kingdom

Germany

Norway

United States

Greece

Pakistan

Venezuela

Hong Kong

Peru

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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Lehman Brothers Municipal Bond Index | Bond Buyer

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Municipal Bond Index

Lehman Brothers Municipal Bond Index

Computed twice monthly from prices on approximately 1,100 bonds in the US market. Prices are supplied by Kenny Information Systems, Inc. The index is composed of approximately 60% revenue bonds and 40% state government obligations.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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Lehman Brothers Government Bond Index Holdings | Performance

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Government Bond Index

Lehman Brothers Government Bond Index Holdings

Composed of all publicly issued, nonconvertible, domestic debt of the US government or any agency thereof, quasi-federal corporations, or corporate debt guaranteed by the US government. Flower bonds and pass-through issues are excluded. Total return consists of price appreciation/depreciation plus income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization.

Sub-indexes include:

Lehman Brothers Government Intermediate Bond Index

Composed of all bonds covered by the Lehman Brothers Government Bond Index with maturities between one and 9.99 years. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization.

Lehman Brothers Government Long Term Bond Index

Composed of all bonds covered by the Lehman Brothers Government Bond Index with maturities of 10 years or greater. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indexes are rebalanced monthly by market capitalization.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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Lehman Brothers Global Aggregate Bond Index

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Global Aggregate Bond Index

Lehman Brothers Global Aggregate Bond Index

Covers the most liquid portion of the global investment grade fixed-rate bond market, including government, credit and collateralized securities.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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FTSE TMT Performance Measurement | Definition

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FTSE TMT Performance

FTSE TMT Performance | Definition

Measures the performance of UK companies in the Technology, Media and Telecommunications sectors as defined by the FTSE Global Classification System.

For over 1,000 additional terms and definitions please see our Investment Glossary Guide.

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Annualized Rate of Return | Average Annual Return Definition

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Annualized Rate of Return

Average Annual Return Definition

Cumulative gains and losses divided by the number of years of an investment’s life, with compounding taken into account. The measure is used to compare returns on investments for periods ranging from partial to multiple years.
Definition Source: Hedgeco

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