Thursday, April 7, 2011

NYT: "Many Hedge Funds Still Smarting From the Financial Crisis"

A large number of funds have yet to earn back their 2008 losses:

The research firm estimates that roughly 35 percent of the 2,500 funds that have continuously reported since 2008 have not recovered — with smaller hedge funds dominating the list.
This is why I am so concerned about major drawdowns, and why I believe it's OK to "miss" mania periods like the one going on right now. And, even better to bet against manias as long as you can do so without capital impairment should they last longer than expected.


Joe Nelson said...

Yikes! some of those losses are impressive. Just what, exactly, were these guys hedging? The losses cited in the article lead me to believe that a lot of these funds were (are) just levered long funds masquerading as hedge funds.

whydibuy said...

Bull market = mania

OK. I see how it works for permabears.
BTW, hows that long bond buy call doing,lol?

CP said...