Large Hedgies Are Not Having A Good Year

By Lawrence

From Zerohedge,
http://www.zerohedge.com/news/2012-12-01/hedge-fund-november-performance

Many big names are not doing fine.

The difficulty of finding alpha in a messed up environment …

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Comments
  • Perry December 2, 2012 at 10:08 pm

    I don’t know this sector, but there is a discontinuity that leaves me wondering what different truthes there may be. It may be a generalization, but hedge fund performances seems to approximate random over time yet some of those fund managers are the most well rewarded in the world. Do they have separate public and non-public reportings that would explain some of this discrepancy? It’s (un)clearly a game for insideres or for their own benefit only. I don’t really need to know the answer, but … I’m not going near?

    • Lawrence Chan December 3, 2012 at 12:10 am

      The reports from HSBC is a periodical that funds participated for the purpose to solicit new clients. It is the dressed up version of their performance.

      Most fund managers are gamblers, period.

      Bigger balls + a lucky streak = outlier performance.

      Outlier performance attracts dumb money making these funds bigger but not smarter. Even a strong trading model will still revert back to its average performance. During that weaken period if you still bet the farm you burn the winnings away.

      Not a formula for consistent performance at all but they are hired for the chance of outlier winning and not for being conservative. =)

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