The conditions are ripe for a new hedge fund boom.  (Bloomberg)

According to the Hennessee Group hedge funds fell about 0.5% in October.  (WSJ)

“As hedge funds and mutual funds begin to eat each other’s lunch, their leverage levels are also converging.”  (All About Alpha)

SAC Capital says it is insider trading-free.  (Clusterstock)

Albert Edwards is firmly in the bearish camp.  (Fund My Mutual Fund, Infectious Greed)

Adam Warner, “If there’s one thing we’ve learned since the inception of VIX futures, it’s that they lag moves in the VIX.” (Daily Options Report)

Martha C. White, “The stock market might be climbing, but retail investors have no confidence in it.”  (The Big Money)

What happens to the long bond yield when the yield curve is very steep?  (EconomPic Data also StockCharts Blog)

Target date corporate bond ETFs are on the drawing board.  (IndexUniverse)

Are there better ways to construct a portfolio other then capitalization weights?  (CXO Advisory Group)

Guy M. Lerner, “I believe the difficulties that investors have with market timing is that they don’t have a plan. They are unable to articulate when they will buy and sell. They are unable to articulate what they will buy and sell.”  (The Technical Take)

Does HFT make technical analysis irrelevant?  (Washington’s Blog)

“They [the best traders] know and expect mistakes will happen but realize that if they’re going to win, they need to follow up every mistake with a great trade.”  (Kirk Report)

Might AIG (AIG) shares actually have some value?  (The Money Game)

Just how good a deal did Barclays (BCS) get when it bought a big chunk of Lehman Brothers?  (NYTimes)

Richard Thaler, “The very fact that we have had these multi-trillion dollar bubbles and crashes does suggest that one aspect of the efficient market hypothesis, namely that asset prices are equal to their true, intrinsic value, is rightly being questioned.”  (Q6 via Nudge Blog)

Credit won’t lead us out of the recession.  (Atlantic Business)

Frederic Mishkin, “Tightening monetary policy in the US or Europe to restrain a possible bubble makes no sense at the current juncture…At this critical juncture, the Fed must not take its eye off the ball by focusing on possible asset-price bubbles that are not of the dangerous, credit boom variety.”  (FT also naked capitalism, Credit Writedowns, The Money Game)

The FHA gets a free pass to the US Treasury. (Nancy Miller, FT Alphaville)

There is no logical reason to extend the home buyer’s tax credit to current homeowners.  (Economix)

One commercial real estate index is showing a turn.  (Richard Green via Economist’s View)

An interview with Alice Schroeder, Warren Buffett biographer, on his biggest weakness.  (Motley Fool via DailyFinance)

The twenty-five most valuable blogs in America.  (24/7 Wall St.)

Should Skype take on Facebook and become a social network?  (GigaOm)

Twitter and LinkedIn ink a deal.  (Bits)

Happiness scores by Congressional district.  (The Atlantic)

Chocolate milk is the new red wine.  (NYTimes)

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