Omicron-fuelled volatility deals hedge funds worst monthly return since March 2020

[Relentless]

there're 3,691 hedge funds in the US. Probably, most of the fund managers are smart but I think whales like Goldman Sach, Vanguard, Black Rock are smarter because they trade with the FED (at least basing on their assessment in the past).
probably, these whales might have trading program that hunts for the trigger point to set off the selling program in a hedge fund, and collect shares at lower price.

Or they have access to walls of insider information well before most others as well as a lot of influence.

Hard not to make money when you essentially help run the show.

 

[RedSun]

In general, hedge funds have bee lagging general stock indexes for the past several years. So it is puzzling that institutions still pile $$$ into hedge funds.

Most of the high flier hedge funds are on leverage and on huge margins. Leverage/margin is the heat of the hedge fund industry. During that Thanksgiving black Friday, margin position exploded. It was not as bad as the Billy Hwang situation, but similar.

With all the free money out there, I see the situation stays the same in the near future. The era of Warren Buffet and Peter Lynch is over. All retail and institutional investors believe they can beat the market and generate 100% or 200% returns year over year. 15% is not enough.