Galileo, which required a minimum of roughly $135,000 to be come an investor, used a number crunching system that the founders argued allowed the fund to bet on sports with much more accuracy than the casual gambler, according to the Los Angeles Times.
Financial crisis or not, another study, this one by Princeton researchers, found hedge funds to be “far riskier and provide much lower returns than is commonly supposed.” In other words, lots of the bad stuff without so much of the good.
“When you think about betting on sports, there really is far better information about your local sports team than there is about any local business in your market.
Despite Woodhams’ confidence, it appears that there may have been some red flags indicating Galileo was headed down a bad path, according to Wager Minds.
“We have unique software we’ve written over five years that ensures we purely trade on statistics and probabilities,” Woodhams told CNBC in 2010. At this point, the reason for the fund’s collapse is reportedly still unknown.
Though Galileo wasn’t a traditional hedge fund, its collapse may highlight some of the risks inherent in others, which aim for high-risk, high-reward investments, sometimes with large-scale consequences. John Paulson’s hedge fund, for one, has been tied to claims that Goldman Sachs purposefully created financial instruments they assumed likely to go bust — and then bet against them.
Mark Cuban is an undeniable idea machine.
“It’s not unusual to hear people refer to trading stocks as no different than going to Vegas. The localTV station gives a report about every game. “The process is very clinical, which is our edge.”. In his blog post, Cuban argued that because the sports betting market is less efficient than other markets, anyone who applied a “smart money” strategy to investing in it would have a good chance at success. The local papers cover the team every day. Gambling isgambling [sic],” Cuban wrote in his blog at the time. It didn’t last very long, however, as the fund appears to have collapsed on Monday, according to Wager Minds.
Cuban’s original idea for a fund similar to Galileo revolved around the idea thats sports provided more information to investors than actual American companies. The fund was regulated by Gibraltar’s government, instead of the British government. But one of his boldest ideas yet may have proven too hot to handle. They are right. A recent paper from two Yale professors found that hedge funds may have played a larger role in the financial crisis than many originally thought. “That’s far better than we get from public companies.”
That’s a notion with which Tony Woodhams, Centaur’s managing director, previously said he agreed. There areradio stations who cover them for hours at a time [sic],” Cuban added. “The question really is, which gives the opportunity for a better outcome?”
Centaur, a London-based investment company, launched its Galileo fund in 2010 based in part because of an idea Cuban proposed in a 2004 blog post — creating a hedge fund that invested in sports bets
The addiction robs a gambler of all the productive time and leads to loss of efficiency at work. Some go that way to forget the sorrow of losing big sums when gambling.
? Over time, the practice of gambling starts becoming a habit and begins to have damaging effects at psychological, physical, and social levels. The two go hand in hand. They engage in gambling activities at the cost of their time with family and friends. Thus, gambling can have a grave economic impact which is difficult to reverse.
Compulsive gambling leads to bankruptcy
? Gambling is practiced as a means of recreation. The addiction leads people to continue with gambling irrespective of whether they earn or lose in the deal. It causes a decline in his/her work performance, thus hampering his career.
? According to a study by the George State University, 50% of the problem gamblers commit crime. It can drag you into crime, gambling isn’t fun.
Games offered in casinos, table games like poker, Red Dog, and Blackjack, as also electronic games like Slot Machine and Video Poker are some of the common types of gambling. It soon becomes a habit that can’t be broken.. This proves to be detrimental to their social and family life. A study by the same university suggested that 73% of the individuals who are imprisoned are found to be problem gamblers.
? Gamblers often exhibit mood swings and a strangely secretive behavior. Some take to substance abuse to supplement the high they get from winning huge sums while gambling. ? They start borrowing money and take secret loans. Betting is a mentally taxing activity, and as one goes on risking more and more money, anxiety starts building.
? As gambling leads to increased criminal activities, in a way, gamblers add to the burden on prisons and the legal system.
You could be at gunpoint or holding the gun. The stress of risking huge amounts of money or the frustration after losing it can increase the tendency of abuse in gamblers. According to the National Research Council, 10 to 17% of the children of problem gamblers have been abused and so have 25 to 50% of the partners of problems gamblers.
Initially, one looks at gambling as a way to run away from life’s problems, or from stress, anger, and loneliness. To add to the so-called merry atmosphere, gamblers often smoke or drink while playing.
? Additionally, rehabilitation and public assistance systems are taxed.
? According to the University of New York, in people with alcohol use disorders, the chances of developing an addiction to gambling are 23 times higher.
? People who fall prey to gambling tend to remain away from their families and waste money on other bad practices. Sports betting and arbitrage betting are the other types. Thus, gambling practices cause a huge financial burden on the families of the affected and on the society at large.
? According to a research by NCPG, 76 percent of problem gamblers are likely to have a major depressive disorder.
? An Austrian study said that around 1 in 5 suicidal patients had a gambling problem.
? Gambling has proven to be addictive. They tend to stay away from their near ones, resulting in distrust between them and their loved ones.
? Gambling at the cost of one’s job results in a decline in the quality of his professional life. The addiction has negative effects on one’s physical and mental health and it proves to be detrimental to one’s social, personal, and professional life. The skill of a gambler lies in weighing the three parameters and making a decision about what amount should be staked and how much should be expected in return.
Gambling = Thoughtless Expenditure + Waste of Time
? Research has shown that gambling can lead to harmful behavior in people. The addiction gets on to the gamblers to such an extent that they fail to think wisely before acting. Due to lost mental peace, they may ill-treat their spouse and children. The effect is similar to that of having a drug or a drink, which is why gambling changes one’s mental state and mood.
? Apart from absence at work and drop in efficiency, a common observation is that gamblers tend to steal money and engage in fraudulent behavior to recover from financial losses incurred when gambling, or to get more money to bet.
? Gambling can lead to criminal activities. Rehabilitating the gambling addicts needs money and time, and the process is not very easy. On giving a serious consideration to the negative effects of gambling, we realize that it is best avoided.
? Substances of abuse are served at casinos and in pubs and clubs, thus increasing the likelihood of gamblers consuming them. Six to eight million people in America are estimated to have a gambling problem.
? Studies show that children with a sibling or parent addicted to gambling, are more likely to take to substance abuse.
? Children of parents who are problem gamblers or gambling addicts tend to feel abandoned and angry, further increasing stress and leading to strained family relations.
? The addiction to gambling can leave one in bankruptcy. A recreational activity is supposed to be refreshing and relaxing, but something like gambling is contrary to the very purpose of recreation. Their mental state can even lead to suicidal tendencies.
? The costs of treating compulsive gamblers are huge. When they lose the money they had risked, they further gamble to recover the lost amount and it becomes a vicious circle even they can’t escape from.
? A majority of those addicted to gambling have substance abuse disorders.
Gambling refers to the betting of money on an event with an uncertain outcome, with the intent of winning additional wealth. In spite of the losses incurred, they continue betting. The decision to gamble money is based on three parameters namely; how much to bet, the predictability of the event, and the conditions agreed upon, between the gamblers. Because of this, they land in worse situations and take the wrong decisions in life.
? Similar to how an individual keeps consuming substances like drugs or alcohol to experience an altered mental state, he continues to gamble. Their debt keeps building and it may reach an amount that exceeds their capacity to repay.
? Addiction to gambling has been linked with substance abuse. The National Council of Problem Gambling (NCPG) describes this type of gambling behavior as problem gambling.
? People continue gambling with the greed of winning money. Addiction to gambling, coupled with substance abuse can make the gamblers physically abusive towards their family. In the following sections of this Buzzle article, we discuss the negative effects of gambling on the individual and society.
? Problem gamblers and addicts tend to abuse their family members. Forget satisfaction or peace, it is not even refreshing in the real sense. It only leads to a thoughtless expenditure of money and valuables.
? The stress from gambling may lead to health issues like ulcers, stomach problems, muscle pains, headaches, and problems with sleep.
Mental and physical health problems, financial issues, and conflicts in the family are among the common negative effects of gambling. The greed never ends and they keep betting more and more. Over time, it becomes a habit, and eventually an obsession that can’t be overcome. Card games, coin tossing, and dice-based games are some non-casino based forms of gambling
At the end of the month, the 55-percent handicapper would have gone 83-67 for a gain of 9.3 units, while the 60-percent handicapper would have gone 18-12 for a profit of 4.8 units, so the 55-percent handicapper has made nearly twice as much.
The 55-percent handicapper is using what is commonly referred to as the Wal-Mart Approach, which is to have a lot of volume with the expectation of grinding out a small profit. And as is the case with the Arkansas-based giant, many times this will be more profitable than being extremely selective and doing a small amount of volume, even if the mark-up is higher.
If somebody were to ask you if you would rather be a 60-percent handicapper or a 55-percent handicapper, which would you choose? The obvious answer is that it’s better to be a 60-percent handicapper, but that isn’t necessarily true.
Making it more difficult for sports bettors is that some sports services will claim to have won 200 units in a particular sport, but don’t mention that they release 10- or 20-unit plays, along with several 100-unit “locks” at the end of the year if things aren’t going so well and they need something to base next year’s advertising on.
For the bettors that do their own handicapping, however, units won is really the only thing you should be concerned with, as that ultimately is going to translate into the bottom line. A winning percentage of 55-percent sure doesn’t sound as sexy as a 60-percent handicapper, but if your volume of plays is high enough, it can certainly be much more profitable.
With baseball season coming back in about 4 months, many sports gamblers will be seeing ads from different sports services claiming winning percentages of 65-percent for baseball, and that’s entirely possibly, but what the services aren’t saying is that the majority of their selections were favorites of -200 or more, turning that 65-percent handicapping into a losing proposition.. The only statistic that sports bettors should be concerned with is units won, which is the amount of profit, or loss, they have over time, and not worry nearly as much about winning percentage. In the question above, it would be much better to be a 55-percent handicapper if you were playing 150 games a month, as opposed to a 60-percent handicapper playing one game a day