Like everyone else, we at Chatham have been gripped by the news of this year’s Ebola epidemic. We offer our sincere condolences for those who are bereaved of loved ones, compassion for those who are currently afflicted, and concern for how to stop this terrible virus from spreading further. A crisis always displays heartfelt motives in stark relief, and this one is no different. We’ve seen health workers and missionaries go directly into the heart of this dread disease’s path, in some cases giving their very lives to heal the sick and halt Ebola’s spread. How admirable has been their courage in the face of peril, and how noble their sacrifice! Crises like this also require grappling with very tough questions. What can be done to prevent the disease’s further spread, and what options are on the table? Also, how…

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This is just a quick note in reaction to the recent announcements by JPMorgan about $2 billion (and counting) trading losses emanating from hedging activities within the bank’s Chief Investment Office. Since hedging is our core business, we at Chatham Financial certainly hope the lesson the world takes away from these revelations is something like “Hedging is something you really need to do properly, or else you could make headlines for all the wrong reasons.” But to be clear, we don’t consider these headlines free advertising. Hedging has no business being on the front page of any newspaper. It is a practice associated with prudent and responsible financial management for many organisations and businesses. Well designed and executed hedging programmes are good for shareholders in that they remove or mitigate unwanted financial risks so that the managers can focus their…

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