the-hottest-hedge-fund-strategy-is-facing-an-existential-crisis

[trader99]

https://www.bloomberg.com/amp/news/...fund-strategy-is-facing-an-existential-crisis

Even in a pandemic, the short side of long-short HF strategy didn't perform well. Geez.

What are HF doing? Definitely not delivering value.

 

[formikatrading]

I know at least one hedge fund that shorts uses a valuation model. One of their top shorts was TSLA. SMH! At a minimum, any self-respecting hedge fund that shorts should be using relative strength as one of their inputs.

 

[trader99]

I

I know at least one hedge fund that shorts uses a valuation model. One of their top shorts was TSLA. SMH! At a minimum, any self-respecting hedge fund that shorts should be using relative strength as one of their inputs.

It's no surprise so many hfs, even famous ones, are shutting down. They aren't delivering any real alpha! Especially at such expensive fees(2/20).

 

[R1234]

I


It's no surprise so many hfs, even famous ones, are shutting down. They aren't delivering any real alpha! Especially at such expensive fees(2/20).

They haven't been delivering alpha (as a whole) for the past 15 years. But the charlatans are quite alive and well. Pedigree and prestige of the fund managers are what matter to institutional investors such as pension funds, a distant second is alpha.

 

[d08]

They haven't been delivering alpha (as a whole) for the past 15 years. But the charlatans are quite alive and well. Pedigree and prestige of the fund managers are what matter to institutional investors such as pension funds, a distant second is alpha.

Exactly. Traders assume it's about results, it's clearly not. Go to the right school, mingle with the right people, get rich. It won't matter that you have no performance to speak of.

 

[bone]

I would imagine that there are some HF's that are Long Tech and Short big Industrials and they are just smashing it this year.

Long STIRS and Short longer dated Bonds on a weighted basis would have also been beast mode in the interest rate yield curve space.

For a couple of months being short prompt crude and long dated crude paid huge - it was like a ten to fifteen dollar move depending on the expiries you chose and the timing. Biggest Contango move that I have ever personally witnessed.

Long/Short portfolios have had and still will have the potential for fantastic returns if you choose wisely.

When it comes to relative value, traders get into trouble when they model for mean reversion. And that's been true for some years now - that isn't a recent development. Mean reversion worked like a champ in the 80's and 90's, has fallen apart the past decade or so.

 

[zdreg]

I would imagine that there are some HF's that are Long Tech and Short big Industrials and they are just smashing it this year.

Every year there are some hedge funds that hit home runs . How many have a 10 year record worth bragging about?

Long/Short portfolios have had and still will have the potential for fantastic returns if you choose wisely.

If is the most important word in the English language.

 

[bone]

How many don't bother to list in HFR's database? Especially since they won't bother with a fund with assets < $500M.

Every year there are some hedge funds that hit home runs . How many have a 10 year record worth bragging about?