another hedge fund down

[zdreg]

buyout titan thomas h. lee weighs hedge fund revamp.
this is another example of how leverage makes people like geniuses.

http://online.wsj.com/article/SB122836224535378663.html#printMode

 

[nazzdack]

Diversification among a fund-of-funds doesn't "work" when everybody is doing the same thing at the same time.

 

[zdreg]

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=apkf970EJb1w

citadel
it doesn't work because of the efficient market hypothesis. who in his right mind would pay 2%+20 and expect to beat the market over time.

 

[makloda]

Efficient market hypothesis?

What are you doing on a trading forum LOL

 

[zdreg]

. there are exceptions for the small traders/investors. however a2% +20 haircut on a large size portfolio cannot make it.

 

[stock777]

hey, what happ to the hedge part?

methinks the only hedges where in the gardens of the overpaid hustlers.

 

[nazzdack]

Quote from zdreg:

.......there are exceptions........

The primary objective of the fund is to maximize the "2 and 20" before investors come-to-their-senses. As for the portfolio "making it", don't be distracted by such a trivial matter.