Capstone Infrastructure Corp

Update (Mar 27, 2014): Cardinal has now been recontracted for 20 years as a dispatachable plant. Management has guided that they will need to spend $30 million to upgrade the plant and the expected Adjusted EBITDA from the plant is $7 to $9 million. While this is not as lucrative as hoped, it nevertheless eliminates […]

Debt Ceiling Fundamentals

Unless your humble abode happens to lie within a cavity deep beneath viagra or cialis more effective the Earth’s surface, you’ve certainly heard a lot of buzz about the United States Debt Ceiling. Like everyone else, you would have asked some of the following questions: What does it mean? Why does the federal government canadian […]

Asset Allocation vs. Security Selection

As I am taking a value investing course at Rotman and am also a Portfolio Manager at the Rotman Student Investment Fund , I have been actively trying to understand whether security selection is better than asset allocation strategies. This is an old and continuing debate, and I tend to take the view that asset […]

The View from Within

I had the opportunity to sit down with Gary Ostoich, the President of Spartan Fund Management Inc. to ask him some questions about his thoughts on the hedge fund industry. Below are the results of that interview. My questions are in bold, with answers given in unformatted text.   Q: How has the industry changed […]

The Fed Tilts its Hand

Is there a case for increased central bank transparency? Bernanke certainly seems to think so. In the press release which announced the results of the December 2012 meeting of the Federal Open Market Committee (FOMC), the language regarding the timing of the Fed’s eventual movement away from exceptionally low levels of the federal funds rate […]

Gold and Basel III

There has been a lot of chatter over the last few months about the changed status of gold as an asset under the new Basel III guidelines. For those unfamiliar with Basel regulations, Basel is a small Swiss town where the Bank for International Settlements (BIS) is based. The BIS is an international organization which […]

Going with the Crowd

Harnessing the financial power of the average person Many people are familiar with the popular television show “Dragon’s Den” in which Canadian entrepreneurs, inventors, and others come armed with ideas or businesses (or both) in an attempt to receive capital. They make their pitch to five wealthy entrepreneurs in the hopes of convincing them to […]

Falling off the Cliff

Ben Bernanke certainly has a way with words. During his testimony before Congress in February 2012, he warned legislators that “a massive fiscal cliff of large spending cuts and tax increases” would hit the United States on 1/1/2013. The phrase seemed tailor made for the press and TV networks who like to explain complex economic […]

Hunting Alpha in Washington

In August, researchers from Harvard and Darthmouth published a very notable paper which studied the impact of federal legislation on U.S. corporations over the 20 years from 1989 to 2008. They found that by studying the deviations in voting behavior between ‘interested legislators’ and ‘uninterested legislators’ (these terms are defined below), signals could be derived about […]