Hedge Fund Breakfast – Part 2: Morning Reads

Moderator Note (Andy): SenhorFinance is a hedge fund partner based out of Brazil and has worked in basically everything: PE, IB, S&T, management consulting and hedge funds. See part 1 in this series.

I started this series up with my Bloomberg morning routine and configuration, along with a few Bloomberg tips for you fellows. I still haven’t had time to go over your questions, but I promise I shall do that whenever possible.

But specifically, one of you asked me about what I read in the morning. That was obviously the next topic in the agenda, so here it goes. Since I am based in another country (and my fund does most of its trading locally), most of what I read is local, so my “global” reading list is quite generic. I invite you to add stuff you think is missing, as well as stuff that is relevant to your product/market/geography.

I start reading at around 7am, and I use an RSS feed reader that works quite well for 80% of the publications I am interested in skimming. If you don’t know what that is, go after it, it saves a shitload of time. After skimming through that and filling my browser with a bunch of interesting tabs, I leave them there for after my top market news.

Market News
Aside from Bloomberg’s top, I typically read only 2 or 3 of those finance-related mass media sources: FT, WSJ, Reuters, CNBC, CNN Money, NYT Business, etc. The reason why I vary which I read daily is they have different styles and variety takes out some of the boredom and repetitiveness. Also, the most important news will be cross-referenced (oh, where would we be without the almighty hyperlink), so be not afraid to miss stuff.

Finance Blogs
It is idiotic to think that only “traditional media” (or their digital versions) will have quality information. I keep up with the finance world through blogs and Twitter as well. Remember those are typically less thoroughly researched, so your grain of salt is always a wise spice. I divide the “finance blog” area in basically three groups:

Group 1 are those blogs that are mostly deal-oriented, such as Dealbook and Dealbreaker, that help us to get a better grasp of whatever is going on the M&A and corporate action world. They provide trading ideas, and help us having a more cold-blooded assessment of whether WSJ merger headlines make strategic sense (and could potentially signal a consolidation trend), or if it’s a mere idiosyncratic deal.

Group 2 are macro-oriented blogs, such as The Big Picture, Calculated Risk, Naked Capitalism, Brad Delong and the like. Again, they bring original and interesting analysis, but always read them carefully. Some authors have strongly rooted beliefs and convictions, and they will do a great lawyer’s work in convincing you of their views.

Group 3 are fun reads, for when I have some extra time (usually not in the morning). Those include “5 dumbest things in Wall St”, Jim Cramer’s and other stuff like that. It is a mistake to write off everything that isn’t packaged in the tidy and traditional jargon of high finance. A lot of the content that is delivered in heterodox ways can have a lot of insights and generate good trades.

Secondary sources
Those include all non-blog websites that I usually read because I am directed to them by mass media, or whose writers I enjoy the style. You could think of the remainder of The New York Times, Barrons, Huffington Post, Forbes, the Telegraph’s finance section, Fortune, II, and the like. Those are all reputable sources (some more than others) but who has the time to go over ALL of them daily? I don’t.

Weekend reading
The Economist & Der Spiegel, my only two physical magazine subscriptions. I don’t read newspapers or blogs over the weekend, I leave them to my Sunday 10pm pre-week reading session (a.k.a. in a few hours).

Don’t forget to add your morning reading suggestions. Have a great week.