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The Death Of Hedge Funds?
With the very largest and most experienced of hedge fund managers vociferously commenting on the "Truman Show" mirage of the markets, the danger of currently policies (there is no way to tell exactly how it all will end. Badly, we guess), and the need for stock-picking prowess, we thought the following chart might highlight the dawning of the death of an entire substrata of so-called hedge-fund managers (and not just the $0 AUM newsletter publishers) who appear unable to "stockpick" their way out of a Fed-provided paper bag. Since Q4 2010, Long/Short funds are down 6% while the immutable low-cost levered wealth creation policy vehicle of choice for the Fed (the S&P 500) is up almost 50% (dividends aside).
There's "hedged" funds and then there's this...
Which is not surprising given what we previously noted...
Hedge fund managers have become high cost version of their index-tracking ETF brethren...
And performance advantages have dwindled...
as style tilts (growth vs value for instance) have seen increasing correlations...
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I'm sure CNBC can find a spot for them somewhere. They could make stock recommendations and pontificate on the markets. Just imagine the show you can have with a person of their experience...... Oh wait..... Never mind.
I hear that Kramer is pumping hedge funds (as well as Maria Bartrilomo, on the airplane, wishing to join the 'mile high' club).
What happens when the hedge funds fold, and the $2 tril AUM goes looking for a new home?
http://www.barclayhedge.com/research/indices/ghs/mum/HF_Money_Under_Mana...
That's a lot of velocity in a potentially short amount of time.
Long/short. Bad strategy when only the long side performs. Oh, and 2/20 fees sucking your blood the whole time.
I'm starting a newsletter where I trade on paper and sell the 'edge' to savvy mom and pop institutions.... I'm gonna call it Edge-eye, or maybe Hedgeguy...
Oh great, a slightly less greedy version of hedge fund with even less accountability. Lemmie guess, Edgeeye comprises a bunch of former sell side analysts and a money manager or 2.
When the game is rigged more than a casino, why play at all? And why would you pay some bozos for their insight, when the only thing that matters is how much the central banks are going to buy that day.
Here's a hot tip: buy on Tuesday. I won't even charge you an e-zine subcription for that.
I think a better point is that the Federal Reserve now has over twice as many assets as all hedge funds in the world combined. Federal Reserve balance sheet is sitting at 4.3 trillion while total US Hedge Fund balance sheet is sitting at 2 trillion. The difference is that the hedge funds have a variety of opposing strategies while the Federal Reserve has only one strategy: buy 10-year equivalents with leverage.
Hedge Funds never die.
They just fade away into the black pools that created them in the first place anyways.
ori
Life and Death
they are supernovas!
remember, shadow banking was a Reaganomics invention dating back to the 80s.
HF are financial conquistadors doing 'Market God's work'; their original model died when the Habsburg empire died and the Spanish Inquisition became all mouldy like the divine caste system.
Those "20" somethings living in lofts and basements on borrowed equity from their 1% entitled MOTHERS?
FTWQ I love My Mother! Happy Mothers Day Mom.
Get creative. Your " Middle Class" Moms are SPENT!
Bullish!
TOFU Queen?
Hedge funds didn't die after the 2007 financial crisis. It will take much more dire circumstances (as hard is that might be to imagine) to kill them. Unfortunately, the dire circumstances necessary to kill them will result in widespread misery throughout the United States and the world. The same could be said of many of the bad players in the current economic environment.
I, for one, am willing to endure significant economic hardship in order to ensure that future generations will not be enslaved. However, I am among the minority. Or I guess a more accurate statement is that I am not among the financially elite. After all, it is the elite who control future economic progress. I just sit here amassing weapons, ammunition and supplies.
you seriously believe that you enduring economic hardship will ensure that future generations will not be enslaved?
@fonzannoon:
Do you seriously believe that the current economic situation will NOT ensure that future generations will not be enslaved in paying back these debts and losses?
I can't say for sure whether future generations will endure economic slavery after said efforts.
However, I can say for sure that without said efforts to fight economic slavery, future generations will be enslaved as mine has been.
Besides. I'm gorging myself on a tremendous fat-ass pizza right now. I would hardly call myself "poor" or "underprivileged."
However, I have seen parts of the world where the amount of money I earn in a day exceeds the amount of money earned in a year. I know what it means for one person to be subjugated to another ... in a way that most American's can't comprehend. What I hope is that this misery reaches the United States. Because if it does not, we are headed straight into the jaws of fascism. We are already well on our way, barring extreme circumstances. And therefore, the future that the US faces is either fascism or tremendous economic pain. Choose your poison.
There won't be future generations. Fukushima has seen to that.
There is a limited amount of generational time to stripmine what is available, before total collapse and oligarchy flight.
That is the only plan.
Here's a glimpse. All nuclear power plants, whether operational or inactive, require core and spent fuel pool cooling 24/7/365/10 billion years. As Fukushima becomes too radioactive to support cooling system staff, what fuel is left burns. As this fire gets larger, the next facility south becomes too radioactive to support cooling system staff. Without properly monitored and maintained cooling systems, those cores and pools explode and burn. As that second facility burns, the next facility begins the same process.
In the meantime, there are less and less qualified nuclear workers to staff these NPP's, let alone anyone that is willing to work there for any amount of money.There is certainly no line of foreign nuclear qualified workers waiting for work in Japan.
The failures of NPP cooling systems will spread like a cancer, with no end in sight, now beginning in Japan, then North America, then the rest of the world.
Welcome to Hell.
slow kill perhaps....profiting big pharma and probably excusing future cancer claims against Gates & cohorts - who knows - these creeps overtly doctor so much "science" and information .......anyhooo u know the chess strategy is more complex otherwise the other PTB charades designed to bankrupt and destroy the west wouldn't be required.
every day the west looks more and more like Mugabe town,,,he sure broke over several decades a functioning bread basket with industrial capability ......ever so peacefully and democractically (sarc)
You've got the right problem, but it may be triggered by other causes.
Radioactive contamination is a concern, but of greater concern (to me) is that all these plants worldwide require a supply of diesel to maintain cooling in the event of a power grid shutdown. An EMP attack or collapse of the financial system would make obtaining the diesel and transporting it to the NPP sites a bit of a challenge in the face of economic and societal collapse. Even if the plants are shut down they would still require ongoing cooling for spent fuel pools.
There is your extinction level event ... dozens of NPPs worldwide burning for decades. And, as you suggested, too hot to approach.
Well, aren't you a cheery optimist, personally I'm looking forward to going fishing for three eyed fish.
A year or so back, I read an article that described the bubble that is 'hedge funds'. If ALL the notes were called, the total amount was approaching ONE QUADRILLION feds. YES, you saw that correctly.
Fucking Monopoly players, using shit to buy and trade shit that ain't SHIT, and whining about the real losses to their pocketbooks (while destroying nations and economies in the process).
What is the name of the guy that hedged his bets that the value of the British Pound would tank, causing it to fall, and in the process, making a shitload of fiat, a few years ago?
it was more than 20 years ago ... but it was different then, there were only a few hedge funds ... now, is every john, scott, tom, harry and their moms ... only quadrillion, well that is optimistic, i thought was much worse than that ... it does not really matter when you talk these kind of numbers if it is 10, 100 or 1000 quadrillion, just invent another name for it, thats all...
Hard to imagine anyone on this forum who doesn't know, but the name is George Soros. Darling of the left. Everything he says has to be filtered, first and foremost, through this. (Sorta like Sharpton and Freddie's Fashion Mart.)
Collecting 2 and 20 for P&G might not be the best strategy. The Ira Sohn Hedge Fund Pitchfest
The ALPHA chart, baby!
Time correlation, especially around September, 2001.
The STOCK BUBBLE, in mid-2000.
The rise after 'The Messiah', and his first selection.
Nothing happens by coincidence. HFT's. Suckering the 'general public' in to 'retirement accounts' that yield 10% plus, while free to bet.
Betting that the value of a tranche of bad home loans will perform/underperform. Betting that the value of UAL and AMR stocks will tank in September '01. Betting that the price of oil will rise/fall. Betting that the value of companies that make airport scanners will suddenly rise. Betting that the weather will get better/worse (while being in control of those that spray the skies). Betting that the Lakers will win the championship.
BETTING with other people's good faith money.
GOD DAMN 'hedge funds'!
Ah, it's just a wet dream, I suppose: the dearth and death of these maggots that suck the life-blood out of the entire economy, and murder without conscience.
You Bitchez had better call your Mothers! or i'm gonna kill you
Single Mom ?
I'll bet my downvotes were from " Females"
Like I care?
"Single Mom ?"
Um, NOPE, dope.
"Like I care?"
UM, yeah, I think you do.
Oh, by the way, fuck you, and come and try it, bitch.
I'll rip your heart out in front of MY Mother ! Bitch
Let's go, slut.
I always like the look of one who sees death, as I take the life from him. They usually wriggle, and the last throes of the struggle are kind of fun to watch. I get such a rush...
Your mother? SHIT, you faggot, leave your mother out of this! Does your mother like her baby boy to be involved in a death-match in which you will lose? Does your MOTHER want to see her baby boy DIE?
EVERYONE'S mother is sacrosanct (except YOURS, apparently, you sick, twisted fuck).
I'm confused> Would you like your card delivered in your car or house?
Joe's explosions , Inc.
Another Friday Night on ZeroHedge LOL!
lets agree to call Mom on Mothers Day
flowers might be nice
A year or so ago Cross you were spewing emotion that your mother had just died, although the Zh forum was hardly the place to share lol.
So which is it? Did your mother die or was it another cry for attention?
Reading your posts these past couple of fridays especially seem to point that you have a severe alcohol or substance problem or are in dire need of professional help or maybe both.
Your cut & paste, brown nosing to other posters & yahooish populist comments are worthy of the down votes you attract in addition to your blatantly sociapathic outburts.
Get help little trader & be well.
That is very big gap...
what happens when there are no hedgers left? boom.
This site is named 'ZERO HEDGE'.
As in 'NADA', 'NO', 'LESS THAN ONE', 'NONE', also known as the arabic numeral 'ZERO', or 'NAUGHT'.
Um...
'On a long enough timeline, the survival rate for everyone drops to zero.'
And THEN,...
http://www.youtube.com/watch?v=Pz6eHI_XM5k
Like you just said.
What are the net capital flows into or out of these hedge funds, and if there is a net draw down where did the money go? Perhaps the lackluster performance of the one helps to explain (or is explained by) the relative outperformance of the other.
Hedge funds presumably being the smart money, it would be interesting to hear what they think about all this. I don't mean what they say to the public, but what they say to each other behind closed doors. If they've bailed out of high growth stocks and repositioned into safety for a good reason, that would tell us that the party really is winding down. They would be the ones to know, after all.
"What are the net capital flows into or out of these hedge funds, and if there is a net draw down where did the money go?"
REALLY?
SERIOUSLY?
Show me the 'net capital' in fiats. (WAIT, let me print some moar, O'Barry and Mr Yellen say; and there's a new trick we'll try on you!)
"NET CAPITAL". Now, THERE'S a definition that awaits an explanation!
Is that like the NET that collects the 'CAPITAL' fishies from the SEA of HUMANITY, and then EATS IT in GLUTTONY?
FUCK, I'll bet you learned THAT term in KOLLEGE!
Didn't you? DI'NT YAH?
The 'NET DRAW' for the 'SEASON'? The PROFITS that you get to keep and eat? The FLOW of the TIDE, in to or out of this 'NET', that brings the harvest of sucker-fish to your table?
'S TRUTH, I know, laddie!
SHHH. It's a secretive secret, now.
"If they've bailed out of high growth stocks and repositioned into safety for a good reason, that would tell us that the party really is winding down. They would be the ones to know, after all."
Tell me this: are you working on your next aquisition of the shiny thingie for the wifey; or the new boat?
The sun is rising. OOps I stayed up.
Be well Bitchez.
ZeroHedgies would be nice.
I can dream, can't I?
Hedge funds are starting to feel sooo 2005. It was a perfect naive casino fantasy: if you have a foolproof "system" you can beat the house at the tables! If you're always "hedged" then you can't lose :) Bernie Madoff capitalized on faith in this naive "system" with his famous split strike conversion play: long puts, short call, long underlying. Can't miss!
how did Bernie get caught anyway? must have been some story for sure, otherwise, what the fock everybody is lying anyway ... i remember his wife Ruth was furious, the poor women must have really felt betrayed, she knew what scambacks all these other hedge fund guys were ... she knew the system from inside
Well...going out on a limb here...I like UltraCoin. Reggie's. Why? Well I remember vividly having email but no one to email. I remember the 67 web sites, in total. EVERYONE said it was a fad and what did I need with email when they didn't have email? My old Netcom email address is so cool I gave it to the ex as a get the fuck away gift. She still gets questions about it. Building off of the bitcoin protocol seems to be the key, right?
Hedge Funds? Fortress Investment Group, owner of Nationstar Mortgage, LLC (actually a scumbag collection company), fuck you! What? You are already fucking yourselfs over? Keep it up!
It;s nice to "forget" occasionally.
Junk away.
hey ya know that Berlusconi's tax evasion penitence is to take care once a week for the old brigade in Alzheimer chronic "forget".
Ya into chronic forget???
That requires no junk 'cos you might forget it!
Keep using ya brain its the only way to stay away from chronic "forget" !
I remember during the Oct. '87 crash these Tokyo traders were tearing their hair out,literally.Never seen that before.The point being they thought the Casino was rigged (it is ) and the US Gov't would step in to stop the rout (the exact opposite of allowing markets to clear).Next up the japanese Gov't propped the failed banks up,essentially bringing twenty Zombie corpses into a studio apartment (what fun).They are still paying for this mistake.
Was it Geithner who decided to Let Lehman go under to enforce discipline (MORAL HAZARD)?
Anyhow lots of blame to go around but the main point is Hedge funds operate outside the rules and any investor must balance the risk.This is the bit about moral hazard.It is called due diligence.
So the Banks take the shadow inventory back on their books to "structure" or layer the investment vehicle.But the market tanks and nobody wants the crappy CDO's,which are now imploding from people walking away from the houses.
We don't want any Gov't regulation.---------> Wait,we are in the sh*t! Throw us a bailout!
Of course the fact that the FED is made up of Wall Street banks has nothing to do with it.
And then everyone rakes in huge salaries and bonuses.Nobody does prison time (Remember Ivan Boesky?).
So now they are about to throw the book at an OWS demonstrater who elbowed a NYPD cop in the eye.
Felony assault on a Peace Officer.Seems someone wants to send a message.....
I can't judge hedge fund managers. The current market is fucking retarded. Tesla and Twitter should be slam dunk shorts, but you would go broke if you actually shorted one of them. No earnings? No problem! Trading over 10x sales? No problem. Banks all around the world are printing trillions of dollars, so metals should going to the moon right now. They're not. Someone buying gold could easily be down 10, 20, 30%. Retard politicians are desperately trying to start world war 3, and the VIX is down. The CBO says the US is absolutely bankrupt, but US bonds are still under 3%.
"fucking retarded" how about a cheating machine ... the other guy has your bets in the computer before he puts his bets ... yeah, it is more complicated than that, of course it is thats why you get sucked into it, but the principle is always the same and it is the only reason why it exist to transfer wealth, the same concept as the casino, the casino people understand very well the mentality
Tesla and Twitter are freaking incredible, one day everyone will wake up simultaneously and then watch those puppies crash.
And some maroon on cnbc is saying "BUY BONDS NOW BECAUSE RATES ARE GOING DOWN!"
It's amazing how stupid some people can be, but then if it turns out he's RIGHT, ... (even on just a trading basis) ...
The day the shadow banking system dies from under the support rug of the TBTF/FED-TPTB (crony political) concocted cabal we can sing :
A small step for the financial world, a huge step for humanity. Reaganomics starts dying right there.
If we add to that the readjustment of the "slave labour arbitrage meme" of NWO outsourcing, we create the framework for a better world and drive a knife through the heart of Oligarchy dystopia of "greed is good" and "rentier globalisation".
All it requires as an initial step is that the WTO monopoly, under US Oligarchy guidance, be inputted by the ILO sister organisation's level playing field balancing act-- as the UN mandate, the first worldwide multilateral organisation, that obliged nation-state leaders to TALK and negotiate with each other in an open, transparent forum-- had clearly laid out. The social contract portion of world trade was totally junked by the Oligarchy brigade of US leaders, since Aldous Huxley day made them into warmongerers, and then into debt fiat disseminators.
Gatt became WTO--Just like the IMF/WB became vulture fund and scam oligarchy banking-- to swat the aspirations of small gnats of the third world Bandung Conference mentality of the 50s, preventing revival of ambitions in third world that were contrary to Dear Henry and Brzezinski blue print logic.
FDR proposed a blueprint, post WW2 Armagedon, for treating world issues beyond the pale of DOMINEERING nation-state bilateral deals that was supposed to define "general good" in open debate for the people of the world to see and understand.
Of course the Cold War reduced that mechanism to a vetoing game of acrimonious tit for tat between the two Superpowers.
With the mega problems facing humanity today, like global warming, population growth and RM physical limitations, its time that these hegemonical, paranoid nation-state, uber alles leaders-- morphed into true greedy scum bags-- eat humble pie and create a true political decision making process that addresses REAL issues; not the "FU EU Neo-con winner take all" variety that Pax Americana morph proposes to the world today.
going long "good" stocks and shorting "bad" ones is a losing proposition in this "market". in the first place whatever stock you short is going to get algo squeezed by the ballz. in the second place unless you chase the overpriced momos everyone else is chasing how can one hope to generate alpha?
Stop participating in the rigged market.
You're never going to win without insider information.
The market in Russia trades on fundamentals.
Russia is looking like the alternative to the US in many ways.
Another proof for the fact that Greece has been sold to banksters
Exclusive information by Kostas Vaxevanis and koutipandoras.gr
http://failedevolution.blogspot.gr/2014/05/another-proof-for-fact-that-g...
i'm going to start a $0AUM newsletter and publish it in blog format where i find every and any reason to be bearish stocks and bullish gold. when i'm wrong, i will declare the entire market a rigged farce. because the "i told you so" moment when i'm finally right after predicting 100 of the last 2 crashes will totally be worth it.
This is OFF TOPIC but I think ZH should cover it:
http://www.extremetech.com/extreme/181818-vampirism-is-real-scientists-f....
This finding is potentially ground breaking and could help slow Alzheimers or other cognitive issues that come with age.
Title of
New, young blood can reverse some signs of aging, improve cognitive abilities
"
Extraordinary claims require extraordinary evidence — and in this case, we have two reports backing up these claims, both from highly credible sources. The first, from the University of California, San Francisco (UCSF) and Stanford, found that “young blood reverses age-related impairments in cognitive function and synaptic plasticity in mice” [doi:10.1038/nm.3569]. The second study, this time from Harvard on the east coast, found that young mouse blood — which has high levels of a protein called GDF11 — improved cognitive and physical capabilities of older mice (which don’t have high levels of GDF11 in their blood)."
Some unknown fraction within blood plasma triggers health benefits.
Next steps in this research: 1) Find out which fraction. Is it a narrow group of one or a couple proteins? 2) Find out what receptors these fractions activate to create the effect 3) Determine what dose is needed by creating a dose/response curve 4a) Determine how long the effects last. 4b) Are there side effects besides the obvious and mundane "transfusion reaction" and immune response to foreign blood products (easily overcome in most cases). 5) Determine if those same factors in human plasma are found in animal plasma...say horse of cow or pig plasma. Transgenic pig plasma? 6a) Determine is recombinant DNA technology can be scaled up to produce the product 6b) Can we tailor our individual blood products via self collected stem cell generated plasma to avoid possible immune responses? 7) Have government step in and reduce the ability of private corporations to monopolize these findings that are the product of PUBLIC FUNDED RESEARCH. 8) Make this tech available across the country and the world. If you know you are going to live longer (maybe?) then you might develop a self interest in mitigating Global Warming.Did you read your own posting? It seems they have already narrowed it to a single protein GDF11.
It sounds pretty good, but of course these things are seldom as easy as they look, it apparently works as some kind of suppressant and too much of it is likely to be dangerous so a lot of work remains on how to introduce it and manage it.
Biotech over all is just in its infancy yet, and I expect they'll find a cure for old age just about a week after they put me in the ground.
Thanks, Code. But that is a misinterpretation. Harvard found one protein SO FAR, GDF 11, that shows efficacy.
Are there more? That is not known yet.
Hey, be hopeful! This is a remarkable breakthrough that could lead to VERY RAPID blunt but effective therapies where you get the infusions of raw plasma while science plods along to refine the technique.
Do you mind travel? Medical tourism to less medical science restrictive countries may give you an option TODAY.