From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .

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Hedgeable | Sophisticated Investing Made Simple

One is to protect the value of part of the portfolio, and the other is to have dapital to liquidity during market disruptions when you can profit by being able to buy when others do not have access eivesis liquidity.

Eidesus you have to consider the Philadelphia problem. Their eidess wasn’t a hedge. If we step back from everything that is going on in the U. Many countries have gone through financial disruptions and had their currencies devalued and had all sorts of economic problems, even in the last 20 years.

That is the endgame. Mikhailovich, who emigrated to the U. It is very difficult to own commodities physically, and therefore you are subject to market disruptions and counterparty risk. The risks were manifest inbut rather than defuse them, government policies have since increased the interconnectedness. It’s normalcy bias, a psychological phenomenon that prevents people from seeing unconventional threats. When you disconnect eidsis and fear, greed runs rampant. A spokesman explained that the main reason is to protect against a crisis scenario.

Russia, Argentina, Brazil—it didn’t extinguish life in those countries. Rather than enable a quick but extremely painful deleveraging, Western governments are trying to delay it by borrowing significant amounts to supplement economic activity. Our specialty is structured credit, and credit derivatives are mispriced because the rates are at zero and are subject to potential significant disruptions.


A cardinal rule of risk management is, don’t put all your eggs in one basket. There is a global market for it.

By various fiduciary and criminal standards, we should have seen a tremendous number of prosecutions and successful lawsuits. People overestimate their previous experience and they underestimate future experience….

Reserves are essentially hedges or protections, they’re monies or some value that is eudesis on the sidelines that can be pressed into service if something happens and you need to rely on these stores of value, for two reasons. Central banks all have gold reserves, and they’ve been increasing them.

eicesis Recently, the Swiss National Bank announced that it holds its reserves in diverse locations around the globe. Lehman clients couldn’t get full value for assets they didn’t think were at risk.

Going for Gold in a Dangerous World

Despite the fact that JPMorgan Chase was lauded as the most capable risk-management institution, it is facing potentially very large losses. We don’t know the real cost of misallocation of capital. Close Going for Gold in a Dangerous World Simon Mikhailovich knows a thing or two about financial weapons of mass destruction. They even thought they owned U.

Simon A Mikhailovich | Financial Sense

Correlation is a measure of risk. Its valuation is driven exclusively by supply and demand. Our concern is that excessive indebtedness around the world is driving governments to try to capitall a protracted deleveraging, because short-term deleveraging is very painful.

The hidden cost of deleveraging proceeding without a blowup is that it transfers value from savers to debtors. The disruptive technologies and government policies have created an extremely highly correlated environment with all financial markets and all financial institutions. Governments are borrowing more and more, and the spreads of government securities are getting tighter and tighter.

The eidesus important thing for the government to do is admit the truth: But the policy measures—essentially zero interest rates—are like antibiotics. That creates distortions, misallocation of capital, and mismanagement of risk, and we are seeing it time and time again. So they are trying to support the prices of goods ccapital services that have been overproduced, which are financials.


Eidesis Capital LLC

For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www. Unquestionably, things were done that were illegal in many cases, certainly grossly negligent.

eixesis And it is critically important to restore the confidence of the population in the fact that the system is not rigged. The level of interconnectedness, the level of misapplied incentives is again unprecedented eidessi history.

Human history ultimately is the history of ebbs and flows of wealth, and the ability to preserve wealth over time requires a very proactive approach.

The other is over-the-counter credit derivatives, which are basically grossly under-reserved insurance.

All Rights Reserved This copy is for your personal, non-commercial use only. Convinced the worst is yet to come, Eidesis, which also is managed by Jim Wang, now invests mostly in gold bullion in various locations around the world outside of the banking system. Thank you This article has been sent to. As with any emergency, this requires a tremendous amount of leadership.

It creates perverse incentives because it breaks the price mechanism, which is the most important signal in a free-market economy. This isn’t about the end of the eidesjs.