http://online.wsj.com/article/SB122031122769488671.html Might have to loosen up my man crush on Tom Steyer.
oulier yr, this year everything that can go wrong, has. i dont see the long term trend of HF growth disappearing anytime soon. imma mean, look at how BAD mutual performance has been, much much worse than HF.
Oh well at least there’s John Paulson who personally earned 4.2 Billion from shorting the sub prime market.
paulson did 3B, not 4. and his fund is down YTD.
daj224 Wrote: ------------------------------------------------------- imma mean, look at how > BAD mutual performance has been, much much worse > than HF. that is what is meant by hedging right ??? MFs just take long positions and dont hedge…
daj224 Wrote: ------------------------------------------------------- > paulson did 3B, not 4. and his fund is down YTD. That’s a ballsy statement to make just four posts below a link to WSJ article showing Paulson’s fund is up about 16% YTD. “everything that can go bad, has” - This is why we haven’t hit a bottom yet.
NakedPuts Wrote: ------------------------------------------------------- > daj224 Wrote: > -------------------------------------------------- > ----- > > paulson did 3B, not 4. and his fund is down > YTD. > > That’s a ballsy statement to make just four posts > below a link to WSJ article showing Paulson’s fund > is up about 16% YTD. > > " opps, yes, i meant citadel. sorry. I get em confused.
Heads I win, tails you lose.
> that is what is meant by hedging right ??? > > MFs just take long positions and dont hedge… pretty much. MF performance is based on a benchmark. even if you lose less money than a benchmark, you still get paid and maybe a pat on the back. .
daj224 Wrote: ------------------------------------------------------- > > that is what is meant by hedging right ??? > > > > MFs just take long positions and dont hedge… > > > pretty much. MF performance is based on a > benchmark. even if you lose less money than a > benchmark, you still get paid and maybe a pat on > the back. . Actually, think about the business of institutional mutual fund management. What’s your goal? Beat the index? Nah, no need to do that. Just don’t lose to the index so much that your sales force can’t sell the fund and keep gathering assets.
BullPow Wrote: ------------------------------------------------------- > daj224 Wrote: > -------------------------------------------------- > ----- > imma mean, look at how > > BAD mutual performance has been, much much > worse > > than HF. > > > > that is what is meant by hedging right ??? > > MFs just take long positions and dont hedge… Incorrect my friend. Hedge Funds pursue lots of strategies that may or may not involve “hedging.” And the definition of “hedging” varies by the Fund Manager. A year is a very short-term measure to judge performance by regardless (that is unless you have blown yourself up). And that partially explains why people buy high and sell low.
The whole point of a hedge fund is not to be down just because the equity markets are. A lot of these managers had no business managing money. They just pile into the same inveestments everyone else is, then sprint for the (illiquid) doors when things turn.
emarkhans Wrote: ------------------------------------------------------- > The whole point of a hedge fund is not to be down > just because the equity markets are. A lot of > these managers had no business managing money. > They just pile into the same inveestments everyone > else is, then sprint for the (illiquid) doors when > things turn. The point of a hedge fund is to offer a different risk/return profile than traditional asset classes. Its main purpose is not “to make money every time the equity markets are down.” That definition is too narrow and naive. Did you read the article. Most of the managers mentioned in the article “had business” managing money. Farallon? Are you an inhabitant of planet earth? The second statement refers to second rate managers. The market are flooded with upstarts that attempted to capitalize on the 2 and 20 craze but that does not characterize institutional quality hedge fund managers (GENERALLY - that is)