Ah, memory. It enjoys playing such tricks on investors as making them believe they can make money by chasing flawed strategies, over and over. Three years ago, it was activism (via UBS Activist Partners, LLC and other unsightly mechanisms), now it is momos. Alas, just as the case in question indicated that UBS clients and their money were soon parted, we now start the clock on how long it is before the brilliantly executing yet totally speculative and completely fundamentally unjustified, momentum chasing strategies collapse in flames that will easily rival if not surpass the Activist pyre.
As a reminder, 3 years ago UBS was gung-ho on getting its clients who had no clue what to do with their excess cash, into such "stellar" funds as:
- Chapman Capital
- Pershing Square
- Steel Partners
- Children's Investment Fund
Maybe it is time for a follow up presentation from UBS, disclosing the massive losses that any investors who were foolish enough to throw their money at UBS Activist Partners, LLC have suffered since 2006. Then take that, multiply by 2, and that's where momo fund returns will be by September 2011.