Friday, March 14, 2014

The Psychomagical Realism of Alejandro Jodorowsky

Photo
Jodorowsky in his apartment in Paris. CreditGueorgui Pinkhassov/Magnum, for The New York Times
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In September, on the day of the Paris premiere of “The Dance of Reality,” his first movie in 23 years, Alejandro Jodorowsky, the Chilean-born filmmaker, learned that he was now an asteroid — 261690 Jodorowsky — as the International Astronomical Union had named a three-mile-wide chunk of rock orbiting between Mars and Jupiter. For a man whose life has been defined by cosmic ambitions, the honor seemed almost expected.
Jodorowsky is now 85, but he remains spry and intense. I visited him two days after the premiere in his professorial apartment near the Place de la Bastille, a book-and-plant-filled domain he shares with his third wife, Pascale Montandon-Jodorowsky, who is 43 years his junior. He’d spent the day writing poetry and, in his role as a spiritual guru, tweeting tarot-card readings and “psychomagical” advice to his nearly one million followers. “My son Adan told me: ‘Look, this is the literature of the future. They answer you, they argue. If they’re not interested, they delete you. They steal from you, it’s something alive!’ ”
Photo
Jodorowsky in "The Dance of Reality," 2014.CreditLe Soleil Films/Camera One/Pathe/ABKCO La Danza LLC
Jodorowsky was already thinking about his next film project. “When I’m not creating something, I get bored, I despair,” he said. From a poster on the wall behind his desk stared a younger, wild-eyed and frizzy-haired version of Jodorowsky as the black-leather-clad gunfighter with no name who is reborn as a kind of avenging Buddha in his 1970 cult classic, “El Topo.”
Written, directed, scored by and starring Jodorowsky, “El Topo” was an ultraviolent Western with a potent mix of Eastern spirituality and European art house surrealism. For six months, beginning on Dec. 18, 1970, it played once a day at the Elgin Cinema in Manhattan’s Chelsea neighborhood, at midnight (1 a.m. on Friday and Saturday) — selling out virtually all its screenings and attracting a heady crowd of hippie-intellectual royalty. Dennis Hopper saw “El Topo,” loved it and recruited Jodorowsky to recut his next film. John Lennon saw it, returned several times and persuaded his manager, Allen Klein, to buy the distribution rights. Reviewers squabbled. The New York Times’s chief film critic, Vincent Canby, dismissed “El Topo” as a garish con, calling it a “rather grotesque, ego-salving San Simeon.” Another Times critic, Peter Schjeldahl, celebrated the film as “a vastly complex, genuinely profound comic allegory — a sort of bloody Latin American ‘Peer Gynt.’ ” Ken Rudolph from The Los Angeles Free Press was more to the point, calling “El Topo” “the greatest film ever made.” Jodorowsky had his own take: “If you are great, ‘El Topo’ is a great picture. If you are limited, ‘El Topo’ is limited.”
In the decades after the fabled run of “El Topo,” for which Jodorowsky was christened the “father of the midnight movie,” he faded in and out of the American cultural consciousness. After making his even more surreal follow-up, “The Holy Mountain” (with gender-bending actors he found at Max’s Kansas City in New York), Jodorowsky had a falling out with his backer, Klein, leading to a three-decade embargo on his two most famous films. During those years, he completed only three more movies: two less personal features that he disowned and one masterful Mexican horror parable, “Santa Sangre.”
“ ‘El Topo’ and ‘Holy Mountain’ were just legends and myths,” Nicolas Winding Refn, the director of “Drive,” told me. “You could read about Jodorowsky through a few books and magazines, but his films were basically inaccessible.”
Photo
"The Holy Mountain" (1973) CreditABKCO Films
In the last decade, as Jodorowsky’s early movies re-entered circulation, rumors occasionally surfaced about soon-to-be-produced projects — the goth rocker Marilyn Manson was set to star in an “El Topo” sequel; the actor Nick Nolte was circling a “metaphysical gangster movie” called “King Shot” — but nothing ever came to be. Jodorowsky’s sometimes shady moneymen always backed out. He once told The Wall Street Journal: “I found Russian producers. I don’t want to say their names . . . [but they] disappeared after three months, and I didn’t have an explanation.”
But now Jodorowsky the filmmaker is legitimately back. “Jodorowsky’s Dune,” a documentary by the American director Frank Pavich about Jodorowsky’s two-year quest to adapt the Frank Herbert science-fiction novel, and “The Dance of Reality,” a trippy but big-hearted reimagining of the young Alejandro’s unhappy childhood in a Chilean town, will each make its stateside debut this spring (on March 21 and May 23). As the rapper Kanye West, whose “Yeezus” tour was inspired by “The Holy Mountain,” put it last November to a packed (and very likely perplexed) house at Brooklyn’s Barclays Center: “I don’t know if . . . y’all ever heard about Jodorowsky, the director. . . . Y’all don’t know who the [expletive] he is. . . . Everybody copied off him. . . . And there’s gonna be [expletives] in this arena in a few months dancing all sloppy off him.”
Anyone wondering what Jodorowsky has been doing since his previous movie, “The Rainbow Thief” — a bust of a Peter O’Toole-Omar Sharif vehicle from 1990 — would find the answer in his overstuffed apartment. Shelves of “The Incal,” “The Metabarons” and other comics he wrote line the entryway. Books on tarot, philosophy and religion are stacked eight rows high in his study. Posters of his films and portraits of his family decorate many of his walls.
“I waited 22 years to make a film, but not sitting here in this seat,” he said to me in his baritone Spanish. “I did 40 books, 80 comics, theater performances, exhibitions of my drawings, tarot courses — ”
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A Film to Change the World

 
The Chilean filmmaker Alejandro Jodorowsky explains his ambitions for “Dune.”
“Did you wonder whether you’d make another movie?” I asked.
“No, no. It was: ‘I’m going to make another movie. There’s time. I’m going to live long enough, and it doesn’t matter if I wait 20 years. I can wait.’ ”
Jodorowsky’s work has always focused on transformations, and as we sat in his study, he began to tell me why. “I’ve seen ‘Hamlet’ many times, and Hamlet, he was just a hideous neurotic, he never changes. He doubts — all the way to the end, all the way until when he dies, he doubts. Don Quixote, in Cervantes, is Don Quixote. He never changes. These heroes are identical, and they don’t change. And to me it seemed that it shouldn’t be that way. If you want to make a work, you need to have heroes like the universe that go on exploding and growing.” He made clear that he saw himself on a similar trajectory. “Between who I was and who I am now, there’s 1,000 years,” he said. “One thousand years!”
During his “El Topo” days, Jodorowsky was, he would later say, a “psychological killer” who “was not able to love.” He was tough, unsparing and prone to visions of grandeur. “Maybe I am a prophet,” he said in 1973. “I really hope one day there will come Confucius, Muhammad, Buddha and Christ to see me. And we will sit at a table, taking tea and eating some brownies.”
Photo
Alejandro Jodorowsky.CreditGueorgui Pinkhassov/Magnum, for The New York Times
Wondering how much he has really changed, I asked Montandon-Jodorowsky, who designed the costumes for “The Dance of Reality,” what he was like on the set. “With me in the private life, I know the very delicate person that he is, but in shooting, he’s terrible!” she said. “Terrible! Everybody scares. He knows what he wants and says it very clearly, so people who are not secure take this like an aggression. For doing so strong a piece of art, you have to be strong.”
Jodorowsky grew up in Tocopilla, Chile, a copper-mining town wedged on a barren mountainside above the Pacific, 900 miles north of Santiago. The son of Russian-Jewish parents — his father was a Stalin-loving disciplinarian who ran a general store called Casa Ukrania, and his mother was a distant woman who forced her son to wear his hair long in memory of her deceased father — Jodorowsky sought escape in the theater from a young age. By his early 20s, he was leading a 30-person avant-garde performance troupe. At 23, decamping South America for Paris, he fell in with the mime Marcel Marceau (Jodorowsky conceived “The Cage”) and co-founded a new performance collective, the Panic Movement. (Among their Grand Guignol-esque works was the four-hour “Sacramental Melodrama,” which called for Jodorowsky to slit the throats of two live geese, manipulate a dismembered cow’s head and symbolically castrate a rabbi.) In 1960, he moved to Mexico, where he spent a wildly prolific decade directing more than 100 plays, writing a controversial comic strip, training with a Zen monk and directing his riot-inducing first feature, “Fando y Lis.” (The film was banned in Mexico.)
Soon to follow were “El Topo,” and “The Holy Mountain,” which was a smash hit in Europe. By that point, Jodorowsky was swimming in offers, and he found his next project in a cinematic version of Frank Herbert’s sci-fi novel “Dune.” (Jodorowsky hadn’t read the book, but a friend had told him it was great.) With the backing of a young French oil heir named Michel Seydoux, Jodorowsky worked feverishly for two years, creating storyboards with a team of artists and assembling a cast that included David Carradine, Mick Jagger, Orson Welles and Salvador Dalí (who insisted on a salary of $100,000 per minute of screen time). Pink Floyd and the French prog-rock band Magma signed on to provide scores for two of the warring planets.
After burning through more than $2 million of Seydoux’s money and never shooting a frame, Jodorowsky could not find additional backing. While he believed his “Dune” would mark the arrival of an “artistical, cinematographical god,” Hollywood saw a money pit.
Photo
Jodorowsky in "El Topo" (1970). CreditABKCO Films
“Is his ‘Dune’ a failure?” Frank Pavich, the director of the new film, says. “I don’t think it is. Everything is there, everything is in the storyboard book Jodo made — the artwork, every scene, every bit of dialogue, every camera move, everything. Was his goal to make a film, or was his goal to change the world? Well, if his goal was to change the world, then mission accomplished.” Pavich makes that case in the final section of his documentary, comparing the French comic-book artist Moebius’s sketches for “Dune” with uncannily similar clips from “Star Wars,” “Raiders of the Lost Ark” and “The Terminator.” Did George Lucas, Steven Spielberg and James Cameron take ideas from the storyboards of “Dune,” copies of which, we’re told in the documentary, were left with every major studio? “Jodorowsky’s Dune” argues that there was at least a subconscious influence. Of no dispute, though, is that the movie sired Ridley Scott’s “Alien,” which was co-written by Dan O’Bannon, the special effects creator of “Dune,” and given its Oscar-winning visual effects by another “Dune” artist, the Swiss surrealist H. R. Giger. Moebius and the British painter Chris Foss, who dreamed up the interstellar spaceships of “Dune,” were consultants on that film.
In “Jodorowsky’s Dune,” Jodorowsky tells Pavich: “I have the ambition to live 300 years. I will not live 300 years. Maybe I will live one year more. But I have the ambition.”
As Jodorowsky and I talked in his study, he returned to the theme of mortality. “Accepting death is a massive problem for everybody,” he said. “I still fear dying, the physical suffering, but spiritually not anymore. I already accepted it. I had a son who died. That’s where the fall of my ego started. That’s when I had the terrible encounter with reality.”
Jodorowsky’s third son, Teo, had a memorable part in “Santa Sangre” as a mambo-dancing bandit, a role that, according to Jodorowsky’s youngest son, Adan, was not a far stretch from reality. Teo died in 1995, six years after the premiere of that film, at the age of 24.
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The storyboards for "Dune" are thought to have inspired Ridley Scott's "Alien."CreditDavid Cavallo/Sony Pictures Classics
“Teo wasn’t a drug addict, it was an accident,” Adan told me. “My father doesn’t like to say that he overdosed, but it is reality. [Teo] used to hate people who take drugs, but one night some stupid friend give him something to sniff. He went to the gym, and it was like that. He was a clever boy, and he died in a stupid way. My father changed a lot. He started to do art to heal people. My brother died to heal our family. I see it this way. We would have never been like this today without his death. It’s strange to say, but it’s true.”
After Teo’s death, Jodorowsky developed his own form of tarot-derived therapy, psychomagic. The method has earned a wide following in Europe and South America, and he still delivers regular lectures on his theories, which emphasize the psychological wounds that fester within families and the ability of symbolic, often absurd, theatrical displays to heal them.
“I’ve cured many people,” he told me. “I’ve managed to get people who couldn’t have children to have children. I’ve cured stutterers. Oedipal complexes. And to see all of those things, that enriches your spirit.”
Adan, who wrote the score to “The Dance of Reality,” told me about growing up as a “child of psychomagic.” His mother, Valerie, Jodorowsky’s first wife, used to weep while playing her piano. “I asked her, ‘Why are you crying?’ ” Adan recalled, “and she said, ‘It doesn’t matter, don’t worry.’ And I realized that her father left her when she was 3, and he was playing music, so every time when she was playing music, she was in contact with him. So when she left the house, I said, ‘I have to do something, I want to be a pianist [too], but I feel bad.’ So I buried the piano in a big hole and put a cherry tree on top of it.”
Photo
One of the many surreal scenes from "The Holy Mountain." CreditABKCO Films
In making “The Dance of Reality,” Jodorowsky set out to perform a considerably more elaborate psychomagical treatment. “This is not a film,” he announced to his crew. “This is the healing of my soul.” For parts of the film, Jodorowsky’s parents are more or less as he remembers them. His mother, Sara, is cold and rejects the young Alejandro after he cuts off his golden locks. His father, Jaime, is almost psychopathically stern. But Jodorowsky reimagines them. Sara dreamed of a life in the opera, so Jodorowsky cast a Chilean soprano, Pamela Flores, to sing all of her character’s lines. Jaime (played by the oldest of the director’s five children, Brontis) was a committed Communist who dreamed of killing Chile’s right-wing dictator, Carlos Ibáñez del Campo. In the film, Jaime is sent on a winding odyssey to consummate this fantasy, only to find himself reborn, like El Topo.
“My father was inhuman, I give humanity,” Jodorowsky told me. “To my mother I give dignity. Everything I gave to the characters of my genealogical tree, I give to myself. And then you have a past where all the characters are realized.”
‘The Dance of Reality” might never have been realized had Frank Pavich not approached Jodorowsky back in 2010, with an idea to retell the almost-making of “Dune.” When the two met for the first time in Paris, Jodorowsky was intrigued, but he told Pavich that the rights to the concept art and storyboards belonged to the producer of “Dune,” Michel Seydoux. The two men hadn’t spoken since the crackup of the movie 35 years before. “It was not a crisis, but it was very strong for us,” Seydoux told me. Pavich didn’t know what kind of reception to expect when he went to Seydoux’s office, but he found the place lined with “Dune” images and Seydoux to be an enthusiastic supporter of the project (eventually he became a producer).
“So then I went back to Jodo to fill him in,” Pavich said. “Now, you could tell that Jodo was nervous: ‘What’d he say?’ I said: ‘He loves you, he misses you. There are posters everywhere. He could not help thinking about you every single day for the last 30 years.’ ”
Pavich persuaded Jodorowsky and Seydoux to reunite, and after filming of the documentary wrapped, they quickly got back to business. Over a lunch in February 2011, Jodorowsky proposed that Seydoux give him a million dollars to make his own film. Seydoux immediately agreed. The next year, Jodorowsky was filming in Tocopilla, the town he left as a boy and to which he had never returned.
“It was a necessity to him to do it,” Seydoux told me last year. “It was something in his heart, so I said, yes, without any information, any script, any paper, nothing. . . . To help him to repair, to give him another chance — it’s important in life. Even if you are 84, you must have a second chance.”

Psychomagical v.s. Infrarrealism

NYT

Speculation with Mexican Oil?

If you bought, or are thinking on buying futures contracts for Mexican oil, think again. The political pact between two major political parties, is coming unglued.

NYT

Reserve Judgement | Ideas with Paul Kennedy | CBC Radio

Reserve Judgement | Ideas with Paul Kennedy | CBC Radio:



"Katharina and Glenn Patterson decided to get a university degree and then return to their aboriginal community. It was 1998 and they wanted to help. But when they spoke out about violence and tried to take sexual abusers to court, Katharina and Glenn were met with hostility and even rage.  IDEAS chronicled their story in Reserve Judgement -- that was in 2000. Producer Mary O'Connell recently caught up with Katharina and Glenn to discover how that experience changed their lives."



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Old Massett - Wikipedia, the free encyclopedia

Old Massett - Wikipedia, the free encyclopedia:



 "Old Massett, sometimes called Haida, is a village on Graham Island in Haida Gwaii, British Columbia, Canada. It lies on the east side of Masset Sound close to the town of Masset; the plot of land it is on is legally designated Masset Indian Reserve No. 1, aka Masset 1. The original name of the settlement was Uttewas, meaning "white-slope village" in the Haida language. It is populated by Haida people of the Eagle phratry. The town is administered by the Old Massett Village Council. Its population has fluctuated over the last one hundred and fifty years; smallpox drastically reduced its numbers in the late 1800s, but in 1968 it had over 1,000 people and was the largest village in Haida Gwaii.[1] In 2009, the Village Council counted 2,698 band members in the area;[2] the 2011 census counted 614 living at the Old Massett townsite.[3]"



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Thursday, March 13, 2014

pi - Wolfram|Alpha

pi - Wolfram|Alpha:



Happy  day!



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Ideas on Hedging (Speculation)

I mean speculation not in the financial, but in the philosophical sense. It seems to me that Men of Action (MOA), sometimes can corrupt the modern financial industry. I explain here:

MOA are not reflexive, think of The Wolf of Wall Street. There is a certain sense in which a man will go hunting for his family. To make a killing and bring a lot of meat. Testosterone induced behavior, can turn a modern man into his ancestor of several generations back. Rules have to guide these men.

My speculation is though, that clear thinking, like in everything else in life can serve you well. Mathematics allows us to clearly consider gains and loses and take reflective action, at the proper time.

The pioneering work of Black-Scholes, identifies one of those clear thinking ideas; but I speculate here that MOA, ruined progress, just like non-thinking men, punished Bruno and Galilei many generations ago.

Hedging is what we do, it is legal and smart, take the bad apples out, but do not stop progress. Maybe the Government of Malaysia is in the hands of MOA, who are interfering with the search for truth, and in this case, the remains of good people that are lying at the bottom of the ocean right now. Maybe it was other MOA; in any case find the truth.

Find the truth of the Malaysian plane.

Speculations

This week I watched the Giordano Bruno cartoon, in Cosmos: A Spacetime Odyssey. It was eye opening.

I knew that, like Galileo Galilei, he had been punished by the Catholic Church in Rome. I did not know, though, the similarity between the two cases; why was Bruno burned at the stake, and Galileo was allowed to die under house arrest?

I am Catholic by birth, but never was instructed in the mysteries of the Church: no first communion, no confirmation, no religious education; so I am not the best person to give a scholarly interpretation of both men and their punishment.

It sucks.

I speculate that Galileo was spared because he was a personal friend of Pope Urban VII.

I am sure to this day, there are Catholics who do not agree with me, they may not even agree with the Neil deGrasse Tyson great TV program.

Markets Overview - NYTimes.com

Markets Overview - NYTimes.com:



 "Market Summary
At 3:41 PM ET: Stocks are weaker today as declining issues outpace advancing issues on the NYSE by 2.6 to 1. The major indexes are all down and the S.&P. 500 is off 1.14% to 1,846.97. Among individual stocks, the top percentage losers in the S.&P. 500 are Phillips-Van Heusen Corporation and Moody's Corporation"



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Красимир Иванджийски - Krassimir Ivandjiiski

Красимир Иванджийски - Krassimir Ivandjiiski:



 "Krassimir Ivandjiiski - publicist, editor, journalist, one of the doyens of modern Bulgarian and European journalism and political thought, known inside and beyond Europe for four decades."



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The Rising Power of Financial Blog Zero Hedge - Money 2009 -- New York Magazine

The Rising Power of Financial Blog Zero Hedge - Money 2009 -- New York Magazine:



"Early on, the readers of these blogs seemed to be a relatively small and disparate group—a smattering of day traders, academics, and people who worked in and around the edges of the financial industry. They were “gold bugs” and “dollar bears” united by their hostility to Wall Street and their conviction that the U.S. economy was heading off a cliff. When Bear Stearns blew up, the bearish view was validated and these blogs gained credibility with a larger audience. Amid the chaos on Wall Street, they found themselves with much greater influence than they’d ever imagined possible."



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Zero Hedge - Wikipedia, the free encyclopedia

Zero Hedge - Wikipedia, the free encyclopedia:



 "Zero Hedge is a news website, content aggregator, and collection of blogs by contributing editors. It reports on economics, Wall Street, and the financial sector and is credited with bringing the controversial practice of flash trading to public attention in 2009 via a series of posts alleging that Goldman Sachs' access to flash order information allowed the firm to gain unfair profits. The news portion of the site is written by a group of editors who collectively write under the pseudonym "Tyler Durden", a character from the novel Fight Club."



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Tuesday, March 11, 2014

The Holy Grail Of Trading Has Been Found: HFT Firm Reveals 1 Losing Trading Day In 1238 Days Of Trading | Zero Hedge

The Holy Grail Of Trading Has Been Found: HFT Firm Reveals 1 Losing Trading Day In 1238 Days Of Trading | Zero Hedge:



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A New Name for SAC Capital: Point72

The SAC Capital Advisors headquarters at 72 Cummings Point Road in Stamford, Conn.Marilynn K. Yee/The New York TimesThe SAC Capital Advisors headquarters at 72 Cummings Point Road in Stamford, Conn.
The new name for the billionaire investor Steven A. Cohen’s family office is a signal that he is not about to move anytime soon from the headquarters of his hedge fund SAC Capital Advisors in Stamford, Conn.
In settling upon Point72 Asset Management as the name for the firm’s flagship operation, Mr. Cohen appeared to find inspiration in the address for SAC’s roughly 98,900 square-foot office at 72 Cummings Point Road. The new name, which the firm announced on Tuesday in a letter to employees, should end speculation that Mr. Cohen might seek to relocate to a less spacious building, if his new firm got much smaller than its current 850 employee work force.
“It reminds us of a sense of continuity: our headquarters has been at 72 Cummings Point Road for more than a decade, and we anticipate it will be our home for many years to come,” Tom Conheeney, SAC’s president, said in the letter. “Perhaps more important, the name emphasizes we point to a successful future.”

Related Links

There has been a good deal of talk on Wall Street and among hedge fund managers about what Mr. Cohen would call the firm that will manage mostly his own money in the aftermath of SAC’sguilty plea in November to securities fraud charges and its agreement to pay a $1.2 billion penalty.
Some thought Mr. Cohen, 57, might opt to name the firm after some variation of Crown Lane, the name of the exclusive street in Greenwich, Conn., the location of his 35,000-square-foot home.
The new name will become official on April 7, just three days before Judge Laura Taylor Swain of Federal District Court in Lower Manhattan is scheduled to either approve or reject SAC’s guilty plea. Mr. Cohen is hoping the selection of the new name and Judge Swain’s acceptance of the firm’s plea will bring to a close an investigation into allegations of insider trading that has dogged SAC for nearly 10 years.
Last summer, federal prosecutors labeled SAC a breeding ground for illegal traders when it indicted the firm. Eight employees of SAC have either pleaded guilty to insider trading or been convicted at trial.
The most recent verdict came on Feb. 6, when a federal jury in New York convicted Mathew Martoma, a former SAC portfolio manager, of participating in the most lucrative insider trading scheme on record. The evidence during trial put an uncomfortable spotlight on Mr. Cohen, after a crucial government witness testified that an agent with the Federal Bureau of Investigationtold him that the primary target of the investigation was Mr. Cohen.
Federal prosecutors have not charged Mr. Cohen with any wrongdoing. But the Securities and Exchange Commission has a pending administrative action against him, accusing him of turning a blind eye to misconduct at his fund. Federal authorities continue to investigate SAC, but a person briefed on the matter said the inquiry was winding down and it was unlikely there would be a criminal prosecution of Mr. Cohen.
Mr. Cohen indicated late last year that as the firm converted to a family office, an investment firm that is less regulated than a hedge fund but does not manage money for outside investors, he would seek a new name for the firm he founded in 1992 with $25 million. Last month, Mr. Cohen and Mr. Conheeney outlined a plan to streamline SAC’s operation and reduce the number of distinct portfolios it operates to manage mainly $9 billion of Mr. Cohen’s money.
Mr. Conheeney said in the letter that besides the flagship, the new firm would also operate a stock trading portfolio in New York under the name EverPoint Asset Management. In Asia, the firm will use both the Point72 and EverPoint names. Traders and analysts currently working for SAC in the United States at the firm’s Sigma and CR Intrinsic divisions will be reassigned to either Point72 or EverPoint.
The firm’s quantitative strategies trading portfolio will be called Cubist Systematic Strategies, a reference, the letter said, to Cubist art. Mr. Cohen is a well-known art collector, who owns a Jeff Koons “Balloon Dog” that sits on the lawn of his Connecticut mansion.
Mr. Cohen has also said he wants to hire a former federal prosecutor or securities regulator to monitor trading at his investment firm in response to the insider trading investigation.
It appears that Mr. Cohen settled upon the new name for his firm at least a month ago. Corporate filings in New York reveal the three new firms were registered on Feb. 4. But Mr. Cohen held off on disclosing the new names when he announced his plans for streamlining SAC’s operation on Feb. 25.
Mr. Conheeney, without directly mentioning the trading scandal, ended the letter on an optimistic note and said better days were ahead for the firm, which last year at its peak managed $14 billion.
“We have been through a great deal during the past few years,” he said. “Our new names, combined with the other changes we have announced, are intended to help us to move forward.”

Cesar Chavez (film) - Wikipedia, the free encyclopedia

Cesar Chavez (film) - Wikipedia, the free encyclopedia:



"Cesar Chavez is an upcoming film directed by Diego Luna about the life of American labor leader César Chávez, who cofounded the United Farm Workers. The film stars Michael Peña as Chávez. John Malkovich co-stars as the owner of a large industrial grape farm who leads the opposition to Chávez's organizing efforts. It premiered in the Berlinale Special Galas section of the 64th Berlin International Film Festival.[2]"



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[1403.2060] Modelling Credit Default Swaps: Market-Standard Vs Incomplete-Market Models

[1403.2060] Modelling Credit Default Swaps: Market-Standard Vs Incomplete-Market Models:



Recently, incomplete-market techniques have been used to develop a model applicable to credit default swaps (CDSs) with results obtained that are quite different from those obtained using the market-standard model. This article makes use of the new incomplete-market model to further study CDS hedging and extends the model so that it is capable treating single-name CDS portfolios. Also, a hedge called the vanilla hedge is described, and with it, analytic results are obtained explaining the striking features of the plot of no-arbitrage bounds versus CDS maturity for illiquid CDSs. The valuation process that follows from the incomplete-market model is an integrated modelling and risk management procedure, that first uses the model to find the arbitrage-free range of fair prices, and then requires risk management professionals for both the buyer and the seller to find, as a basis for negotiation, prices that both respect the range of fair prices determined by the model, and also benefit their firms. Finally, in a section on numerical results, the striking behavior of the no-arbitrage bounds as a function of CDS maturity is illustrated, and several examples describe the reduction in risk by the hedging of single-name CDS portfolios.



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Monday, March 10, 2014

Ideas on Hedging

The NYT article below indicates one known complexity of Hedge Funds. The same person who bets on the problems of a publicly traded company, Herbalife, leads a campaign to make it fail. Another way to put the problem is: If you know that your investment can only go up in value, that knowledge can make it go down. If I know the wining ticket number for tomorrow's lottery, that knowledge can change the future, and the number could lose.

We do not know the future, only the past.

In his interesting book, The Improbability Principle, David J. Hand, explains how almost impossible events, do occur, sometimes.

Then one can ask: Why are there Hedge Funds?

Even if this problem is more complicated, one could learn from the study of simpler systems, like turbulent flow. After all, the purpose of calculus is to predict. Given initial conditions, one could know where the Moon, the Earth, and the Sun, are going to be tomorrow. The problem does not have an exact solution, but Henri Poincare studied it successfully. This is the so-called, "Three Body Problem".

The study of hedging is hard, but not impossible.

NYSE:HLF: 65.64 0.90 (1.39%) - Herbalife Ltd.

NYSE:HLF: 65.64 0.90 (1.39%) - Herbalife Ltd.:







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