What is so difficult about 2018 that cause legendary Einhorn to lost 25% so far?

Winton never charged 20% Mgt fees. You probably referred to performance participation?

southall said:
Trend following did very well in the decades upto 2010. But since then has been quite poor. David Harding/Winton one of biggest trend followers does not feel justified to charge clients 20% fees anymore and is only charging 1% management fees on his trend following fund going forward.

Seems there are too many large funds doing trend following and the space has become over crowded and this has weakened the edge.

(btw, PTJ and Cohen were never managing trend following CTA type funds, but i know what you mean, many other managers did get rich from running trend following funds in the past.)
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southall said:
Trend following did very well in the decades upto 2010. But since then has been very poor, Ed Harding one of biggest trend followers does not feel justified to charge clients 20% fees anymore and is only charging 1% management fees on his trend following fund going forward.

Seems too many big funds are doing trend following and it has become crowded and this has weakened the edge.

(btw, PTJ and Cohen were never managing trend following CTA type funds, but i know what you mean, plenty of other managers did get rich from trend following funds in the past.)
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We have had the largest bull market in the stockmarket in a while. Trend following should still be profitable for most hedge funds. Of course, it takes them longer to establish a position and then, to exit it later on. That has been the case and has not changed for most hedge funds. I have to research this further as I am curious what returns hedge funds nowadays are making on average and what was it before, using a trend following model.
 
Daal said:
Its super difficult to run a long-short fund with AUM in the billions. There is just not that many great short opportunities to accomodate that size. As a result he is short a lot of momentum names and he just keeps losing money on them
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I agree with this completely. I think he may be making a beginner mistake here which is to short a stock because it seems too high, i.e., it seems to be in it's own bubble. Even when these stocks, like Amazon for example, finally correct, and they all will at some point, their price may well have advanced so far that even a 20% correction can't make money for you.

Shorting is a real skill unless you have inside information. We should only short stocks that are in real trouble, and the problem is that by the time we find out others have also found out. So you have to be very good at seeing serious problems on the horizon before others do. Or just have a fishing buddy on the board.
 
He's short a lot, what's up with that... Einhorn can't believe that Trump could do all the wonderful stuff he's done for the economy and the markets? Peer pressure from rich/famous idiot libs? Another superior introvert that "just can't be wrong" perhaps?

I really don't give a ratzazz why these geniuses can't win all the time, really don't. I'm just glad they are there because markets need participants.
 
southall said:
Trend following did very well in the decades upto 2010. But since then has been quite poor. David Harding/Winton one of biggest trend followers does not feel justified to charge clients 20% fees anymore and is only charging 1% management fees on his trend following fund going forward.

Seems there are too many large funds doing trend following and the space has become over crowded and this has weakened the edge.

(btw, PTJ and Cohen were never managing trend following CTA type funds, but i know what you mean, many other managers did get rich from running trend following funds in the past.)
More...

It is interesting to note that trend-following and value investing are suffering a drawdown period since the last 2008 financial crisis. It is a mystery why these 2 proven methods of investing have fallen, at least temporarily.

What investment styles have made money since 2008? Tech investing is one of them.
 
firstly , it is usually (upon closer look) nothing legendary about the wall street legends

secondly, each method has its limits , and its possible that the current market are beyond the limits of some methods
 
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