Media

President Bush arrived in INDIA today (March 1, 2006) to continue his ongoing attempts to sway the government and investment sector of INDIA to increase their investment positions in the UNITED STATES. More specifically, he is there to spearhead and increase pressure on INDIA to purchase more U.S. bonds. This is a ploy to continue to “float” U.S. debt in the international market.

INDIA offers an attractive alternative economy. Its economy is BOOMING!!! INDIA has experienced tremendous advances in information technology and service industry support (outsourcing). Advances in these areas have been extremely lucrative for the country and has subsequently endowed INDIA with substantial cash reserves and liquidity for international investments.

HEDGE FUND managers are using technology to seek out and capture profit opportunities, the elusive “alpha”, in a more systematic way. ALGORITHMIC TRADING, in which software employs mathematical models to make trading decisions, allows these managers to break up their large trades into smaller pieces for optimal execution. It also lets them deploy automatic arbitrage trading models, which saves time and creates greater efficiencies.

While there is no evidence that ALGORITHMIC TRADING software can make better decisions than the brain of a motivated fund manager, these technologies can sort through massive quantities of market data, harnessing arbitrage possibilities as they occur. In short, as profit opportunities for HEDGE FUNDS become increasingly rare, these technologies may help fund managers find and capture them. With this reality in mind, investors would be wise to inquire how a fund uses ALGORITHMIC technologies to deliver results.