Once considered the titans of Wall Street, hedge fund managers are in trouble

OddTrader · May 31, 2017

Once considered the titans of Wall Street, hedge fund managers are in trouble

By Renae Merle May 29

https://www.washingtonpost.com/busi...18f6849a004_story.html?utm_term=.88bdc2b07e3c

Investors have responded accordingly, pulling $111 billion out of the industry in 2016, according to eVestment, an institutional investor data firm. More than 1,000 funds closed their doors last year, the largest number since the 2008 financial crisis.

Many of the advantages the industry relied on for decades have started to disappear, industry experts say. There are more hedge funds placing the same type of bets. And finding a unique idea, an undervalued company or one with flaws that no one else has spotted, is becoming more difficult, particularly at a time when so many stocks are rising, they say.

“The hedge fund industry has started to collapse on itself,” said Charles Geisst, a Wall Street historian at Manhattan College in New York. “There are too many players going after the same thing.”

dealmaker · May 31, 2017

As per Barry Ritholz's Masters In Business Podcast there are now more hedge funds ( 11k) than Taco Bells.

birzos · May 31, 2017

We have been researching this, the top fund returns have been following the QE curve, and the best they could come up with is 1% of fees on AUM, with all that liquidity and 5,000 year low interest rates it's pathetic. No one in their right mind will leave their capital at risk if there's even the slightest hint of tapering. There are only a handful of us who designed strategies without QE in place, and suddenly this past month I've been getting calls, we need your knowledge but embedded in our QE model, like it works that way! Assuming securitized sovereign debt doesn't catch on as "New QE", the inefficiency is legendary.

Martinghoul · May 31, 2017

birzos said:
We have been researching this, the top fund returns have been following the QE curve, and the best they could come up with is 1% of fees on AUM, with all that liquidity and 5,000 year low interest rates it's pathetic. No one in their right mind will leave their capital at risk if there's even the slightest hint of tapering. There are only a handful of us who designed strategies without QE in place, and suddenly this past month I've been getting calls, we need your knowledge but embedded in our QE model, like it works that way! Assuming securitized sovereign debt doesn't catch on as "New QE", the inefficiency is legendary.

Say whaaat? This is just gibberish...

sle · May 31, 2017

birzos said:
We have been researching this, the top fund returns have been following the QE curve, and the best they could come up with is 1% of fees on AUM, with all that liquidity and 5,000 year low interest rates it's pathetic. No one in their right mind will leave their capital at risk if there's even the slightest hint of tapering. There are only a handful of us who designed strategies without QE in place, and suddenly this past month I've been getting calls, we need your knowledge but embedded in our QE model, like it works that way! Assuming securitized sovereign debt doesn't catch on as "New QE", the inefficiency is legendary.

LOL. Really?

HeSaidSheSaid · May 31, 2017

http://www.marketwatch.com/story/he...t-year-at-a-pace-unseen-since-2008-2017-03-17

birzos · Jun 1, 2017

Martinghoul said:
Say whaaat? This is just gibberish...

sle said:
LOL. Really?

Thought it was above everyone's pay grade, so much for Elite, but I've learnt a little trick "Better to remain silent and be thought a fool than speak and remove all doubt" - it turns out you can also invert it on people who have cognitive dissonance, given that's most of society these days time to have some fun!

Martinghoul · Jun 1, 2017

birzos said:
Thought it was above everyone's pay grade, so much for Elite, but I've learnt a little trick "Better to remain silent and be thought a fool than speak and remove all doubt" - it turns out you can also invert it on people who have cognitive dissonance, given that's most of society these days time to have some fun!

Firstly, did you realize what the dictum you've quoted actually implies? Given that it all started with you spouting all sorts of nonsense... Oh, the irony!

Secondly, yes, everyone is dumb and you, sir, are the only genius on ET. In seriousness, what do you think the probability of this actually being the case is?

Mtrader · Jun 1, 2017

Martinghoul said:
Secondly, yes, everyone is dumb and you, sir, are the only genius on ET. In seriousness, what do you think the probability of this actually being the case is?

The "suckcessor" of Marketsurfer?

birzos said:
I've learnt a little trick "Better to remain silent and be thought a fool than speak and remove all doubt"

Reading what you post, you forgot the trick already.

Dolemite · Jun 1, 2017

birzos said:
There are only a handful of us who designed strategies without QE in place,

I am the middle finger of the handful. Don't let these people get to you. After all, we don't need two handfuls with our knowledge! We are better off closing our mouths and becoming a fist!