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Complete Hedge Fund Performance For November And Year To Date
With November in the books, a month in which the S&P rose 2.85%, and a centrally-planned 27% year to date, it is time to check how the most prominent US hedge funds are doing heading into the home stretch. As usual - it is not pretty. And yes, while hedge funds don't benchmark to the S&P, after 5 years of underperformance, their LPs sure start asking themselves why do they pay 2 and 20 at a time when one can buy the SPY for free and thanks to CIO Bernanke, outperform 98% of all hedge funds?
Best and Worst Hedge funds of 2013:
The complete latest HSBC presentation:
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I'm not sure how a keyne's leveraged quantitative strategy could be down. Isn't that basically the same thing as btfd?
opps..pomo interuptus
--> Green Arrow - Carlos Danger
--> Red Arrow - After Anthony Weiner was 'exposed'
Is that QE in your pocket or are you just happy to see me?
A proper hedge fund (one that hedged) would under perform a bull run.
Not quite sure how a proper hedge fund can be down 20% during a trending market though? WTF were those guys doing?
Building a good Algorithm is simple nowadays, all the best ones (which are also closed) have the same strategy.
They have 3 subcomponents which trade the following market types.
Trending
Ranging
Expansive Volatility
The trending subcomponent simply uses a rainbow of moving average indicators to enter a position when a trend is establishing, they ususally employ trailing stops which are based on the channel depth and the organisation of the rainbow.
The ranging subcomponent trades on overbought/oversold indicators to enter a position, this is an attempt to enter the market near reveral points, they employ very tight stops to prevent the subcomponent from bleeding drawdown during a trending market where the market can remain overbought for a long time.
The expansive volatillty subcomponent attmepts to anticipate big price movements, indicators often include evaporating liquidity and data calandars, this components usually inject low latency stop orders both above and below the market milliseconds ahead of key data releases or times when liquidity is seen to be vanishing.
Rather than try and determine which state the market is in, trenidng or ranging or volatile expansion, you just run all three subcomponent 24/7 and when one is drawing down another is making money to pay for it. The trick to stable returns is to minimize the drawdowns when a subcomponent is out of phase.
Drawdown is the most important part of trading. You should never drawdown more than 10%. This is because of the asymetry of fractions.
e.g. If you lose 10% you need an 11% gain to recover, but if you lose 30% you need a 50% gain to recover and if you lose 50% you need 100% to recover.
So you try and keep you account on the shallowest part of the risk spectrum where your loses are always capped to single digit percentage points, otherwise you will not have enough capital to safely recover the loss.
Anyway, I've said too much.
Ahmm.. could you repeat that please..? Y'know... the part about QE to infinity.
Sure,
On QE to infinity you have a nive organised moving average rainbow and your trending subcomponent is long and stays in the market long because the market is trending higher and higher.
Your ranging subcomponent is regularly entering short position (becuase the market is overbought) but it keeps getting stopped out. but you use tight stops therefore you losses on these losing short trades are small and they simply negate your open long position of your trending subcomponent.
Over time you make big money, because you are open long 100% of the rise and short for maybe 10-20% of the rise, therefore you catch 80% of the gain.
Sounds like a glorified Pareto PDF.
You missed one:
The Bitcoin Fund, which is traded exclusively on the EXANTE fund platform and was launched in late 2012, is the best performing hedge fund year to date with a return of 4847 per cent.
Reference: http://www.hedgeweek.com/2013/11/25/193637/bitcoin-fund-best-performing-...
Boy that S&P looks like a great hedge fund. Do they charge 2/20?
So the predators are dumb like those results for USA done by OECD for school children performance?
Maybe those Chinese banks, like the Algerian government, have a better return on their sovereign funds than WS scions!
Keynes Leveraged? Great name.
Dumb money...
Looks like a really good Christmas for Owl Creek.
Tears at the majority, for holders anyways.
If you invest in the S&P instead of hedge funds, you're hedging against the hedge funds!
Well the green Viagra is working for the guy in the pic
I thought it was going to be one of those "presented with no comment" ones.
When Bernanke gets out of the Fed he can start his own fund or go back to polluting young economist minds with Keynes trash.
Greenspan advised PIMPCO.
Aaaand the grand loser: the one that has Keynes in its name!
Where is Phibro/Astenbeck/Occidental on this list ? The last I heard , this money was being run by G_d.
So the Keynesian fund is shorting the market that is being pumped up by Keynesian theories, say what?
Paulson recovery fund though.
green arrow + hockey stick expo curve = broke dick.
These figures look pretty good to me. I mean everyone who worked for the funds got paid generously didn't they?
Proves the definition of capitalism -
"The passing around of your money from one entity to the next until there's nothing left"