I’m back! Rather than trying to fill in everything that’s happened in the past year, I’m just going to mention the following four things and then the rest of this blog will continue as if there had never been a break –
1) I landed a job with the merger arbitrage group of a hedge fund based in San Francisco. The job starts in June and I couldn’t be more excited.
2) I’ve initiated a long-short capital structure arbitrage in Grupo Prisa, a Spanish media conglomerate. Essentially, it s B-shares (PRIS-B) will convert into 1.33 A shares in June of 2014. However they are somehow currently cheaper than the A shares ($1.55/share vs $1.58).
It’s a great trade but note – I’m currently being bought out of my short in the Prisa A shares (PRIS). How do hedge funds in large capital structure or merger arbitrage situations deal with this?
3) I’ve also begun trading in a brand new asset class – P2P investing. Specifically, LendingClub. Based on analysis of the historical Excel data LendingClub publishes, I invest according to the following criteria:
+ 36-month term
+ No derogatories on borrower’s credit for past 24 months (but allow up to 1)
+ Debt/income of 15% (but flex to 20%)
+ $25 per note
+ C, D, E and F-rated notes
+ Purposes: credit card, home improvement, car, wedding, major purchase, and debt consolidation (maybe moving costs)
+ Mortgage (but will be flexible)
+ Any size, income and credit score (though all are supposed to matter)
4) Just finished reading Hedgehogging by Barton Biggs. I have thoughts on it, but not enough time to enumerate them here. Note to self: read John Maynard Keynes’ biography as it comes highly recommended.