Arbitrage
Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms.
Convertible Hedge Arbitrage: An arbitrage strategy which involves buying a convertible security while simultaneously selling short the same company's common stock. This strategy involves identifying stocks that are mispriced by the market, shorting the stock and buying a convertible security issued by that company. Having sold the stock short, the investor puts proceeds in an interest-bearing account. If the stock price stays the same, then the investor will earn interest on the short sale proceeds and interest on the convertible security, while paying fees to the lender of the stock. In most cases, this situation will lead to a positive net cash flow. If the stock price rises, then the investor gains on the convertible stock, but loses (hopefully a smaller amount) on the short sale position. If the stock price falls, the price of the convertible falls, but the value of the convertible will never fall below the value that an ordinary bond issued by the company would have. On the other hand, the investor makes a gain on the short position (hopefully more than the amount lost on the convertible). A convertible hedge is considered a relatively safe strategy, but choosing which ones to pursue is complex and so convertible hedges are done primarily by professional investment managers who are supported by powerful analytical tools.
Basis Point
One hundredth of a percentage point (0.01%). Basis points are often used to measure changes in or differences between yields on fixed income securities, since these often change by very small amounts.
CDO
Collateralized Debt Obligation (CDO) is an investment grade security backed by a pool of bonds, loans or other securities. A CDO is structured to contain multiple tranches of securities with different maturities, yields and credit ratings. The payments to the investor are based on the cash flows from the underlying assets, thus the investor takes on the risk of the collateral of the deal.
Tranches in a CDO are divided into senior, mezzanine and equity based on credit ratings and yields. In case of underperformance of the underlying collateral pool, payments to senior tranches take precedence over payments to less senior tranches. Therefore, due to higher risk, lower rated tranches will carry a higher yield than more senior tranches.
Correlation
In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used in advanced portfolio management.

Correlation is computed into what is known as the correlation coefficient, which ranges between -1 and +1. Perfect positive correlation (a correlation co-efficient of +1) implies that as one security moves, either up or down, the other security will move in lockstep, in the same direction. Alternatively, perfect negative correlation means that if one security moves in either direction the security that is perfectly negatively correlated will move by an equal amount in the opposite direction. If the correlation is 0, the movements of the securities is said to have no correlation, it is completely random. If one security moves up or down there is as good a chance that the other will move either up or down, the way in which they move is totally random.
In real life however you likely will not find perfectly correlated securities, rather you will find securities with some degree of correlation. For example, the performance of two stocks within the same industry is strongly positively correlated although it may not be exactly +1.
Geometric Mean
A measure of central tendency calculated by multiplying a series of numbers and taking the nth root of the product, where n is the number of items in the series. The geometric mean is often used when finding an average for numbers presented as percentages.
Risk Free
A theoretical interest rate that would be returned on an investment which was completely free of risk. The 3-month Treasury Bill is a close approximation, since it is virtually risk-free.
Sharpe ratio
A risk-adjusted measure developed by William F. Sharpe, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund's historical risk-adjusted performance.
Short Sale
Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. Short selling (or "selling short") is a technique used by investors who try to profit from the falling price of a stock. For example, consider an investor who wants to sell short 100 shares of a company, believing it is overpriced and will fall. The investor's broker will borrow the shares from someone who owns them with the promise that the investor will return them later. The investor immediately sells the borrowed shares at the current market price. If the price of the shares drops, he/she "covers the short position" by buying back the shares, and his/her broker returns them to the lender. The profit is the difference between the price at which the stock was sold and the cost to buy it back, minus commissions and expenses for borrowing the stock. But if the price of the shares increase, the potential losses are unlimited. The company’s shares may go up and up, but at some point the investor has to replace the 100 shares he/she sold. In that case, the losses can mount without limit until the short position is covered. For this reason, short selling is a very risky technique. SEC rules allow investors to sell short only on an uptick or a zero-plus tick, to prevent "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.
Standard Deviation
A statistical measure of the historical volatility of a mutual fund or portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.
TASS Database
TASS™ Research is the suite of hedge fund research products and services owned and operated by Tremont Capital Management, Inc., through its subsidiary, Tremont Capital Management Ltd.

Tremont offers information and research through the TASS Database. This database is recognized as probably the most accurate and comprehensive hedge fund database available today and serves as the foundation for the CSFB/Tremont Hedge Fund Index, the industry's first asset-weighted benchmark of hedge fund performance. The database lists in excess of 5,500 funds and managers. The TASS Database provides information on a global and extensive range of alternative investment funds and managers which includes (but are not limited to) all types of hedge funds, including long/short equity funds, equity market neutral funds, event driven funds, distressed securities funds, risk arbitrage funds, convertible arbitrage funds, fixed income arbitrage funds, managed futures funds, commodity trading advisors, emerging market funds and funds of funds. The TASS Database tracks over 150 fields of information for each of the hedge funds in the database, and is one of the only sources that provides assets under management since inception.
Many hedge funds release monthly return information to attract new and accommodate existing investors. These data are collected by a number of parties, some of which make them available (either or not at a fee) to the (qualifying) public. The most noteworthy databases are those maintained by HFR (1400 funds), TASS (2200 funds) and MAR/Hedge (1500 funds). Apart from the performance data, these vendors also collect many other useful pieces of information such as the type of strategy followed, assets under management, management and incentive fees, formal structure, manager details, etc. In addition, these databases are used to calculate a number of hedge fund indices.
Vintage Year
By convention, a private equity partnership's "vintage year" typically is the calendar year in which it accepts commitments from limited partners.
Weighting
Specification of the relative importance of items when combined. For example, the percentage of a portfolio or index that a given stock represents.

Factors Affecting The Communication Process.

ð Perception(Most Influencing Factor)
ð Communication Channel
ð Environment
ð Language / Semantics

Our perceptions make us see, hear and communicate what we want to or what we believe in and this may be quiet different from what the original picture is.

Communication channels e.g. telephone, email etc. may pose technical problems to adversely affect the process.

There are a lot of environmental factors also where the communication process is taking place, like noise etc, which pose distractions.

Foul, condescending, evaluative and over-generalizing language also hinders the communication from being effective.
PERCEPTION

Each of us makes judgments about others. Your controlling part gives an automatic nod of approval when you meet someone who looks, talks, thinks, and smells the way you expect and approve.

On the other hand, some characteristics that you observe in others may trigger disapproval from your controlling part. The controlling part lists things that aren’t “right” about the other person. Your reaction will include more than internal responses. Your face, body language and words may indicate how you react.

Key Points :

ð Each of us make judgments about other people based on what we consider good. Correct or normal. These judgments come from the set of rules (called “tapes”) that come from our families, cultures and experiences.


ð Tapes come from the controlling part and can produce conflict and prejudice.


ð Our tapes, family traditions, life experiences and cultures all color our view of the world.


ð Most of us have of what it means to be polite – these vary from culture to culture. If you ignore another person’s tapes, you will be seen as rude.

ð In any given situation, there is “The way you see it.” “The way I see it,” and “The way it is.”

ð Differences in perception are neither right or wrong.

Tips Out Of Office Reply

Out Of Office Reply

Whenever you're going to be out, you should have Outlook send an automated Out Of Office reply using the Tools > Out Of Office Assitant. The reply should contain:

* Duration of your absence
* Alternative contacts for each application you work on
* Escalation contacts

Example:

I will be out of the office Friday the 1st through Wednesday the 5th. If your matter is urgent you may contact the following people:

MSCRM issues: XYZ at 123or PQR at 456
Diffrent issues: PQR at 6-2238

Please contact Hiren ShahA at 789 for any escalations.

Thanks and have a nice day.