Hedge Funds, Managers, Career Risk, Market Beta

There's a drift toward market beta happening across the $2.7 trillion hedge fund industry. No one should be surprised. Because the single most powerful, overriding force in finance is neither fear nor greed, it’s career risk -- the cumulative annualized growth rate for the S&P 500 over the last three calendar years has been an astonishing 16 percent. That means a million dollars invested in the market on January 1st 2010 and left in through the end of 2013 is now worth almost $2 million.

What’s a hedge fund manager to do? | The Reformed Broker: ".... if you don’t play, can you keep your assets and clients? Maybe for a little while, but each passing month it gets harder. You can stick to your guns and continue to fight – as Seth Klarman is doing with a 50% cash position - or you can simply hang ‘em up like Stanley Druckenmiller.... so-called “investors”… Most of them only like the idea of non-correlation, but can’t stand the actual sight of it when the bulls are fornicating on the corner of Wall and Broad...." (read more at the link above)

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