The Hedge Fund Wall Of Shame

M

michaelscott

I wonder how many MBAs and other such grads will be looking for jobs soon. Hedge funds are looking like one big black hole.

Fortress looks like it will go to $13 at this rate.

If a publicly traded stock's price are a proxy for what is happening in real life, then I am betting that the hedge fund world is about to implode.

Look at how the street has voted no confidence in Eddie Lampert. LEH, JPM and AIG operate the largest fund of funds. LEH and JPM are sinking to 52 week lows. AIG hanging in, but sinking. FIG and BX just keep sinking. FIG looks like another New Century Financial. Finally, MF Global which provides brokerage services to funds keep sinking and looks so bearish. Goldman which is supposed to be the secret hedge fund is doing soooo bad.

Interactive Brokers has nothing to do with this thread. I thought I might throw it in because it deserves to be on the Wall of Shame just because.

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I agree the hedge fund bubble is going to implode. It's funny cause the two things I'm pursuing right now, biomedical engineering and finance, are both bubbles waiting to pop.
 
http://www.dealbreaker.com/2007/07/jeremy_grantham_run_for_your_l_1.php#more


Are you presently working for a hedge fund or major bank? May Jeremey Grantham, chairman of Grantham, Mayo, Van Otterloo & Co. (via us) suggest that you get the hell out of there, because most of you are going to die anyway? That’s right, Dealbreakettes, according to Grantham, credit-market declines are going to force “as many as half”-- half, 50%, 1 of every 2-- of all hedge funds to close in the next five years. Last year 717 hedge funds closed, leaving 9,800 in business. Ergo, FOUR THOUSAND NINE HUNDRED of you are soon to be history (we did the math). Oh, and at least one global bank (gut instinct: Goldman Sachs) and “one or two” of the largest private equity firms, because those assholes have it coming. Grantham can make such apocalyptic forecasts for 2012 because he is 68, and may very well be dead by then. Grantham, Mayo, Van Otterloo & Co will survive, presumably.
 
what exactly is a hedge fund bubble. to say going to implode infers market will implode too..


Quote from showyouwang:

I agree the hedge fund bubble is going to implode. It's funny cause the two things I'm pursuing right now, biomedical engineering and finance, are both bubbles waiting to pop.
More...
 
Quote from TheDudeofLife:

That’s right, Dealbreakettes, according to Grantham, credit-market declines are going to force “as many as half”-- half, 50%, 1 of every 2-- of all hedge funds to close in the next five years.
More...

Wow. Great insight. Each year about 10% of funds close down. Not a big surprise that in the next 5 years about 50% will be closed down. Question that really matters is how many new funds will start up?
 
Hedge funds are just begining. I thought there was some reg or something to allow change so hedge funds can solicit pensions funds, etc?
 
lemme see....

data up to 30/7

S&P
jul -1.9%
ytd +3.8%

RBC250 hedge fund index
jul -0.3%
ytd +6.7%

I can see why in the current market environment the players with lower volatility and higher returns will suffer....

This turmoil will separate the boys from the men. Lots of funds will close down and had no business of being in business in the first place. The well run funds will only gain from these troubles.
 
Quote from Lights:

what exactly is a hedge fund bubble. to say going to implode infers market will implode too..
More...

Ahhh... somebody IS paying attention.

HF/PE implode means market implode as they are the ones holding up the market right now. If you guys are correct it will make the 87' crash look small.
 
Quote from BJL:

Wow. Great insight. Each year about 10% of funds close down. Not a big surprise that in the next 5 years about 50% will be closed down. Question that really matters is how many new funds will start up?
More...

Not only that but more money (if fewer funds), bigger funds, fund of funds, maybe fund of funds of funds too.:D
 
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