When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Sunday, July 20, 2014

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)


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects