sports arbitrage

 
 
  • A’s “Moneyball” strategy could be victim of own success

    Freddie Gregory

    Freddie Gregory

    For recreational bettors who want to place bet with a single bookie. It is suggested that they should select sport book after comparison of different sport books and that sport book should be selected that is offering lowest margins as compare to others these books are mostly located near to the top of odds comparison.
    Freddie Gregory

    Latest posts by Freddie Gregory (see all)

    Two of his former assistants, neither of whom played ball, have become general managers on other teams, and the Red Sox won their first championship in 86 years using greater reliance on statistical analysis.

    And he said that the sometimes grudging acceptance of his methods of using statistical analysis to determine how to build a winner has changed the market for players and made things tougher for small-revenue clubs such as his.

    ___________________________________________

    But the general manager of the small-revenue Oakland Athletics has become just that. They look like the Goldman Sachs arbitrage desk,” he told the conference. That’s humbling.”

    The book detailed how Beane and other executives at the hand-to-mouth A’s used statistical analysis rather than just traditional scouting methods to identify and acquire under-valued players who could help their team win.

    For a look at baseball’s upcoming spending spree, click here.

    For more on the business of sports, click here.

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    And win they did, as the team has the fifth best record in baseball since he took the reins in 1998, and is only a win or two behind a couple of the biggest spending teams during that time: the Boston Red Sox and St.

    For view of the “Moneyball” theory when the book first came out, click here.

    Afterwards, Beane told me he’s amazed by the recognition that he’s gotten from the world of business since Lewis’ book.

    Changes limited outside baseball

    “I don’t know anything about cricket, but I guess Australia and India are like the Yankees and Red Sox and New Zealand is the Oakland of cricket,” he said with a laugh.

    The NBA’s Seattle Sonics has made a greater push for unique statistical analysis to give the team an edge. But overall the changes in football and basketball are less widespread than in baseball.

    “We’re trying to find micro-cap players and pay for future performance and eliminating paying top dollars for veterans whose peak performance is in the past,” he told attendees at Fortune magazine’s “Innovation Forum” in New York this week.

    “Robert Rubin wrote me a letter,” he said. “That’s flattering. “We just didn’t have a choice. Beane was able to get some high on-base percentage players at bargain prices.

    Beane faced a lot of hostility to his calls to change the way the talent is judged, particularly from scouts and other executives who felt threatened.

    “Today the opportunities are diminishing quickly, and to me it’s a product of some extremely bright people running teams,” he said “In 10 years the front offices are going to look like arbitrage departments.”

    The A’s strategy of using more statistical analysis has spread across the sport, as teams turned to young college-educated analysts rather than former players to make decisions on players. Having less than your competitor is never an advantage.”

    But Beane’s modesty when speaking to executives at the Fortune forum also seemed to confirm that a competitive disadvantage found in baseball more than football or basketball was the mother of his form of innovation.

    Beane said he’s convinced his methods would work even better in leagues with those restrictions on the labor market.

    Five years ago most fans and executives paid attention to a hitter’s batting average, which said how often they got a hit to reach base, rather than his on-base percentage, which said how often they reached base by hit or walk. We had the change the dynamics to keep up with the other teams.”

    “Do I wish everybody in baseball had the same amount to spend? Absolutely,” said Beane. Louis Cardinals.

    “It wasn’t that we were innovative,” he told the group. He became famous outside the world of sports fans when he was subject of the 2003 book “Moneyball” by Michael Lewis.

    “The market has significantly corrected itself,” he said. “At some point, the disadvantage of being a small-market team is that the inefficiencies will be weeded out. “On-base percentage is the now the highest paid statistic in the game.”

    The only team from outside of baseball to pick up the phone and call Beane to ask for advice is the national cricket team of New Zealand, which sent a group of executives to Oakland to shadow Beane and his staff and learn their lessons.

    I suggested to Beane that it was the salary cap and revenue sharing in football and basketball that have slowed the adoption of his methods in those sports, that without as free a market, and as great a disparity in payrolls, there isn’t nearly the incentive to shake things up and go against the “old boys club,” as he describes the former look of the baseball front office.

    NEW YORK (CNN/Money) –

    But while baseball is changing in this way, the nation’s other team sports are making far less moves towards changing the way they operate.

    “The front offices no longer look like good-old-boys clubs. “In 10 years I won’t be able to apply for this job.”

    Because of those shifts, Beane said it’s only going to get tougher for the small-revenue team to make up for their limitations by being smarter and finding value.

    Billy Beane says he’s an unlikely choice for being the business world’s favorite sports executive. Learn More

     
  • Make Money from Home with Ebay- Ebay Arbitrage Strategies

    Make Money from Home with Ebay- Ebay Arbitrage Strategies

    Freddie Gregory

    Freddie Gregory

    For recreational bettors who want to place bet with a single bookie. It is suggested that they should select sport book after comparison of different sport books and that sport book should be selected that is offering lowest margins as compare to others these books are mostly located near to the top of odds comparison.
    Freddie Gregory

    Latest posts by Freddie Gregory (see all)

    The easiest way to do this and avoid auction fever, with the resulting over payment, is to set up autobid. Be certain to make your auction listing better than the one that did not sell, or adjust the closing time of the auction a bit to help improve the selling price.

    Make money with Ebay at home is both an excellent and legitimate way to earn extra money fast. Autobid allows you to make your initial bid and then authorize your bids to rise at a set amount if someone else out bids your offer. If you are careful in your research and look for high quality, high profit margin items to resell you will easily be able to generate a solid income through the use of Ebay arbitrage. Most auctions closing in prime time will go for prices either at or above market value, although some will close lower than they should. First, it helps if you have an idea of what collectibles and other unique goods are worth. People who make money from arbitrage buy low and sell at a higher rate without holding onto the product or commodity for more time than is absolutely necessary. Focusing on unique products with high desirability will allow you to turn over your merchandise quickly enough to keep even the most rabid bargain hunter browsing through your Ebay stores looking for your best and latest deals.

    Upon winning an item you should make your payment immediately to the seller via Paypal to speed the transaction. Knowing your prices is helpful, but not essential to your success. One other point, your auction listings must also close with enough time for you to have the item mailed to you before you can reship it to another, so be careful of your time frames. Another advantage of using the autobid feature is that you do not need to baby sit the auctions you are bidding on at any time, the program does it for you. Even more astonishing is how rapidly you can build a full store inventory of highly profitable items with very little front money. The only thing you are after is a way under priced product that you can relist immediately and resell quickly for a profit. They make their money off the flux in prices in the marketplace.

    Making money selling with Ebay arbitrage is not difficult, but you will need a few basic skills to get you started. Time is money, so limit the amount of time the item is in your possession to maximize your profitability.

    Once you have done your basic price research, you will know the possible upside potential of the items you are thinking about buying to resell. Usually these items have very poorly written auction listings, new sellers, or sellers with questionable feedback ratings. Make the decision on an item and move on looking for other great items to resell.

    What You Will Need to Make Money on Ebay with Arbitrage

    Arbitrage on Ebay is just exactly what you may be thinking.

    One of the best make home from money with Ebay strategies ever is Ebay Arbitrage. Do give yourself every opportunity to improve the selling price of your Ebay auction listings. Go to the advanced search section, put in the description title of the item as it is listed and tick the box which shows closed auctions. If you have some money to invest and don’t mind waiting a bit to maximize your returns selling through an Ebay store is a good way to accomplish your goals. With autobid, you set the upper limit of your bidding range so there is no worry that you will end up paying more than you wanted to for the item. You look for very low priced items at auction which are closing soon and are a steal to purchase. Your search will now bring up the history of the closing prices of similar items and what they have closed for. Utilizing both a storefront to lower selling costs and auction listings for fast product turn over and store promotion is a useful strategy.

    The higher your potential profit margins the better your chances of making a solid return on your investment for your time. Ebay stores are much less expensive for volume listings and will result in lower overall selling fees increasing your profit margins. In general though, auctions closing at less peak traffic times or on slower days will be where the values are most easily found. Provide one and you will make the sale.

    After you have established that you have an item which is potentially profitable, you can go ahead and place your bid. As a rule, auctions closing during the evening hours throughout the week and during daytime hours to early evenings on the weekends do the best price wise. If you have enough money to let your items sit around for awhile before you resell them, making use of an Ebay store rather than auctions is a good way to go. You will also need to take the condition of the item and the number of listing competing into consideration when making your selections. As soon as you have sent your payment, rewrite and relist the item for auction. The higher your potential profit margin, the lower you can list your auctions to guarantee the auction will close with bids. What is arbitrage exactly? The term arbitrage comes from the financial world and means the simultaneous purchase and sale of the same product or commodity. Take a look at the auction listings and see how the ones with the highest closing prices were written and then incorporate the basic layout in your auction listing.

    How to Make Money on Ebay. Look for items with at least 200% markup wherever possible and a solid history of 50% or better auctions closing as sales. You are looking for items with huge value that you can pick up for a pittance, relist either at Learn More

     
  • China investors aiming at arbitrage profits make Hong Kong shares soar
| Reuters

    China investors aiming at arbitrage profits make Hong Kong shares soar | Reuters

    Freddie Gregory

    Freddie Gregory

    For recreational bettors who want to place bet with a single bookie. It is suggested that they should select sport book after comparison of different sport books and that sport book should be selected that is offering lowest margins as compare to others these books are mostly located near to the top of odds comparison.
    Freddie Gregory

    Latest posts by Freddie Gregory (see all)

    Hong Kong’s

    Growth Enterprise Market(GEM) shot up over 10 percent

    in the same period, its biggest weekly gain in nearly six years.

    * Funds trying to arbitrage major price differences

    PUMPING IN LIQUIDITY?

    “There are not many good investment opportunities here, so

    we would naturally want to hunt for new targets elsewhere,” he

    said.

    On Wednesday, Chinese investors used the entire 10.5 billion

    yuan ($1.69 billion) daily investment quota for

    buying Hong Kong stocks under the Shanghai-Hong Kong Stock

    Connect scheme for the first time.

    This propelled the Hang Seng China Enterprises Index

    up 5.8 percent, following a 6.43 percent gain last week, and

    helped the Hong Kong exchange reach record volume on Wednesday.

    But this time may be different. Domestic fund managers say they are seeking to exploit a

    major pricing imbalance between the markets, the result of a

    mainland rally that until now showed little sign of spilling

    over into Hong Kong.

    Shanghai-based hedge fund manager Xia Xiaohui thinks such

    price differences cannot last.

    Including Wednesday’s gains, China’s CSI300 index

    has soared 92 percent during the past year while the Hong Kong

    China Enterprises Index is up 29.8 percent.

    “With such a big price gap, why don’t I buy stocks in Hong

    Kong, especially if it’s the same company?” said Xia, chairman

    of Liuhe Capital, which has started buying Hong Kong stocks.

    * Previous attempts failed on tepid demand for HK shares

    The mainland market is now seen as bubbly without growth,

    while Hong Kong has value but lacks liquidity, he said.

    By Samuel Shen and Pete Sweeney

    “Regulators seem to be very supportive for local funds to

    invest in Hong Kong and … there’s real demand and real

    interest from local investors.”

    “The current huge valuation gap and the excessive liquidity

    in mainland funds is raising interest in Hong Kong stocks,” said

    UBS strategist Lu Wenjie, noting Chinese small-caps trade at

    around 100 times earnings on average, compared with just 10

    times for Hong Kong peers.

    Invesco Great Wall Fund Management Co is launching China’s

    first actively-managed mutual fund to invest via the

    Shanghai-Hong Kong Connect, describing the Hong Kong market as a

    “gold mine”, and “a low-lying land” in terms of valuation.

    Borsera Asset Management Co plans to launch a similar fund this

    month.

    LARGE PRICE GAP

    (Reporting by Samuel Shen and Pete Sweeney; Editing by Nachum

    Kaplan and Richard Borsuk)

    * Chinese funds buying HK shares ahead of Shenzhen pilot

    China’s 5 trillion yuan ($807.36 billion) mutual fund

    industry is already getting into position.

    As a result, mainland-listed blue chips are now about

    one-third more expensive than their Hong Kong versions – as

    measured by the China-Hong Kong price premium index -

    while Chinese dual listed small-caps trade at a premium of 10

    times the cost of the same company’s shares in Hong Kong.

    * Investors see HK shares as less bubbly than mainland

    stocks

    David Dai, Shanghai-based investor director at Nanhai Fund

    Management Co, a hedge fund, said he would buy Hong Kong shares

    in part because he thinks valuations on mainland exchanges are

    overheated.

    ($1 = 6.1930 Chinese yuan)

    In the past, arbitrage opportunities proved a mirage. Several days

    later, China allowed insurers to buy shares listed on GEM.. In late March, China’s

    securities regulator improved access, letting mainland mutual

    funds invest in Hong Kong shares via the connector. So lowly-valued Hong Kong stocks are

    becoming increasingly attractive to mainland investors,”

    Borsera’s fund manager Zhang Xigang said, predicting that

    China’s mutual fund industry would soon start pumping liquidity

    into Hong Kong.

    Small caps expected to become eligible for mainland

    investment when the Shenzhen leg of the stock connect opens -

    anticipation is for this year – benefited even more. The

    Shanghai-Hong Kong stock connect not only failed to narrow the

    premium after its November launch but actually widened it as

    Chinese retail investors declined to move money south.

    “With the two markets increasingly connected, this is an

    obvious arbitrage opportunity.”

    SHANGHAI, April 8 Chinese funds are snapping up

    shares in Hong Kong, betting that a link-up between the Shenzhen

    and Hong Kong stock exchanges, and easier access for

    institutional investors, will yield quick double-digit or even

    triple-digit arbitrage profits.

    “Water flows downward Learn More