Often Handcuffed by mandate.
Hedge Funds Shut as Managers Struggle in Year of Two Percent Returns
- Thread starter Banjo
- Start date
So even the so called "smart" money is actually on the "wrong" side of the trade?
You beat me to that one.
2% per year!!!! They are really in it for the admin fee( is that 20%?).
So what are the implications for r-e-t-a-i-l traders , those some love mocking
p
) ????Continue to stop following "smart money"
.
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Peter Lynch complained that when he finally could find a price he wanted to buy at, the market was so down that all his investors had abandoned him and there was no more money to buy. He questioned, "Why not just open a closed end 2/20 fund? I can buy what I want when I want and I never have to worry about investor liquidation."
I can not remember who said something to the effect "a trader gets what he wants from the market".
It seems like to me he is more bothered about "abandonment issues" ( psychology),
than performance issues. ! lol.
Damn!!! One poster used to say there was a born sucker every minute among investors!
I wonder if someone took it personnally.:eek:
Anyway, what type of game are they now playing ?
God the ignorance on this board is second to none. A large majority of hedge funds are not in the buy and hold "blue chip" space. WTF would I pay someone 2/20 to buy and hold blue chips when I can simply buy an ETF for that? Hedge funds perform in niche spaces because there is a demand for exposure in that niche space. If you are a convertible bond fund, that is what you trade. You don't buy blue chip stocks. LOL. If you are a long/short equity fund, that is what you do. There really aren't that many buy and hold equity hedge funds out there because it's impossible to raise capital there due to your costs. If they are in the equity space it's usually small caps, foreign companies or private equity. Newwurldmn is right.
No, I think it's the ignorance of the people on this board. I have 18 years of empirical data to prove it.