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Why Hedge Funds Hate Stocks In A World Where "Tulip Trend" Is Top Performer: Complete July Performance Summary

Tyler Durden's picture




 

July was not a bad month for most hedge funds. There is, however, one big problem: virtually all of them underperformed the S&P. As they did in June. As they did in May. Etc. Etc. And that has been the theme this whole year: hedge funds, which account for over $2 trillion in unlevered purchasing power, and between $4-6 trillion levered, are not doing badly, they are simply  underperforming the S&P very badly, in many cases by more than 2 standard deviations. And as all those fund managers who wake up and go to bed with two words on their minds: "career risk", underperforming the benchmark, or in this case the broad stock market, which does not demand 2 and 20, is the surest way to extinction. Then again, in a centrally planned market in which a hedge fund called Tulip Trend is the best performer Year To Date (and in which Paulson's Disadvantage Minus continues to be the worst), nothing can really surprise any more.

Top and bottom 20 Hedge Funds Year To Date:

Select brand name funds July performance:

Full HSBC report:

 

 

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Fri, 08/10/2012 - 11:38 | 2694213 The Wizard of Oz
The Wizard of Oz's picture

DOW 100000 HERE WE COME!!@!@#!@#

Fri, 08/10/2012 - 11:40 | 2694224 slaughterer
slaughterer's picture

The Fed always pushes stawks a little lower whenever 10-Year T yields rise a little bit.  They need to inject a little panic in the equities and corporate debt market to scare institutional money back into Uncle Gorilla debt. 

Fri, 08/10/2012 - 15:55 | 2695106 True.North
True.North's picture

Tulip Trend is a fund at Progressive Capital Partners in Switzerland. Maybe this will help offset some of that 25% loss from 2009...

Fri, 08/10/2012 - 11:38 | 2694214 YesWeKahn
YesWeKahn's picture

What did Paulson do? why he is down another 17%?

Fri, 08/10/2012 - 11:41 | 2694231 The Wizard of Oz
The Wizard of Oz's picture

HE DIDNT DO THAT, SOMEONE ELSE DID THAT!

Fri, 08/10/2012 - 11:43 | 2694235 Satan
Satan's picture

Used up all his luck on one trade.

Fri, 08/10/2012 - 12:05 | 2694301 pd45
pd45's picture

The fund shall be renamed 'Awaiting for Obama Bailout"

Fri, 08/10/2012 - 11:39 | 2694219 Slope of Hope
Slope of Hope's picture

At least the MANU IPO is going well....oh, wait

Fri, 08/10/2012 - 11:41 | 2694229 slaughterer
slaughterer's picture

Wait until we see J. Robertson and all of the funds of his "little tigers" next quarter after the  PCLN write downs. 

Fri, 08/10/2012 - 11:45 | 2694239 slaughterer
slaughterer's picture

Must. Pump. PCLN. 

Must. Pump. CMG.

Must. Pump. NFLX.

 

Fri, 08/10/2012 - 11:43 | 2694240 asteroids
asteroids's picture

What do we conclude 1) Those really smart guys that manage money really have no clue. 2) There must be an awful lot of firepower handy to "manage" the market.

Fri, 08/10/2012 - 11:44 | 2694242 buzzsaw99
buzzsaw99's picture

luv watching ackman lose $

Fri, 08/10/2012 - 11:47 | 2694251 slaughterer
slaughterer's picture

Ackman: is he not the definition of "smug"?  Where is his macro picture?  Put Tyler against Ackman in the fight club, I have no doubt who ends up with a broken nose. 

Fri, 08/10/2012 - 11:47 | 2694248 Flaming Ferrari
Flaming Ferrari's picture

Tulip Trend is one of the best trend following CTAs out there. Been making good money since the early 90's. Credit where credit is due.

Fri, 08/10/2012 - 11:56 | 2694279 MsCreant
MsCreant's picture

Tulip bulb mania. It works until it doesn't. 

Pop!

http://en.wikipedia.org/wiki/Tulip_mania

Fri, 08/10/2012 - 12:26 | 2694376 slewie the pi-rat
slewie the pi-rat's picture

yup

tyler put this up a coupla daze ago

:>Elliott Management: We Make This Recommendation To Our Friends: If You Own US Debt Sell It Now <:

paulSinger, a vulture guy?  big neoCon top-level republican-connected donor?  boilerplate capitalist? anyhow, no mention of this fund in this report

at just <$20Bil is elliotMGMT private?  or is it not "technically" a hedgie? any way to know how this guy with ears prob'ly 10X the siza mine got er done last Q? 

Fri, 08/10/2012 - 11:49 | 2694256 Dr. Engali
Dr. Engali's picture

Damn Paulson is headed to zero at an incredible speed. A true one hit wonder.

Fri, 08/10/2012 - 11:50 | 2694262 Neethgie
Neethgie's picture

I am glad odey is not in the top 10, i hate that bastard with a passion and im not sure why.

Fri, 08/10/2012 - 11:53 | 2694275 adr
adr's picture

So investing in bubbles is profitable? Let's just hope Tulip's clients know when to get out, cause whoever is left holding the bulbs in the end gets crushed.

Fri, 08/10/2012 - 12:03 | 2694295 MsCreant
MsCreant's picture

Why would you name your company Tulip Trend? Is the owner named Tulip?

I have some names:

Progressive Ponzi

Bunko Bubble

Confidence Capital

Fraudlent Federal

Housing Hustle

 

Fri, 08/10/2012 - 12:15 | 2694334 Floodmaster
Floodmaster's picture

Every small investor should hate the stock market, it's only good for the Marissa Mayer ($100 Million in bonus) and other cheerleaders-in-chief.

Fri, 08/10/2012 - 12:25 | 2694372 EmileLargo
EmileLargo's picture

It is really nonsensical running a hedge fund if investors follow your returns month to month. Sometimes you can be right on a trade and it can take a year or two for the trade to work out. You make a whopping return for a month and then they're measuring your return against the "benchmark" again. A good example of this is Michael Burry's experience as described in "The Big Short". Burry was absolutely right but the amount of crap he had to deal with was incredible. And the amazing thing is that his investors pulled their money out even though he was absolutely right about the housing market and made them an absolute fortune.

ERGO, running a hedge fund is about doing what the fucking herd is doing. Really, investors (including the so-called sophisticated ones) are THAT dumb. Even Hugh Hendry said that even though he has consistently returned double digits since inception, he can barely get $1 billion into his fund whereas Brevan Howard who make almost nothing by comparison have tens of billions in their fund. MARKETING is everything.

Fri, 08/10/2012 - 13:34 | 2694566 L927
L927's picture

Smart guys like Hugh H or the guy were he worked before...have strong opinions and speak them out, this scares most of the attentive mean variance UBP-UBS-CS out there. How could they ever dare to explain what is going on to their pricipals who were attentive markowitz followers before them?!!! Well, Berny fittet well the equation and their portfolios. On the other hand you have large housees with soft-speaking marketing persons, nice shiny offices with a big blinky reception an invested portfolio you can hardly guess, a bit up or down each month, who cares why? Yes it is scaring.

reg. to John P. well it is just the confirmation that outlier performances, in contrast to the avg performances are made by some single brain, not the process. If the creative brain leaves the shop, you can still have a great business man running it but the gazoline is missing....

Have a lot of fun with past performances mean and st.deviations!

 

 

Fri, 08/10/2012 - 12:30 | 2694393 Dareconomics
Dareconomics's picture

I am going to stop calling the markets rigged in favor of "dysfunctional."
"Rigged" implies a conspiracy, and the evidence does not reveal one.

The evidence tends to support the theory that the markets are not functioning correctly due to central bank action so dysfunctional it is. 

This latest post is more evidence of dysfunctional markets. Theoretically, half the hedge funds should show a  gain and half a loss in comparison to the S & P. Most funds are showing a loss, and this has been the case for months. 

If these funds are losing money, someone is making it at their expense. I bet the who is the TBTF banks. How is the next scandal. 

 

http://dareconomics.wordpress.com/

Fri, 08/10/2012 - 16:29 | 2695244 Panafrican Funk...
Panafrican Funktron Robot's picture

"I am going to stop calling the markets rigged in favor of "dysfunctional." 
"Rigged" implies a conspiracy, and the evidence does not reveal one.

The evidence tends to support the theory that the markets are not functioning correctly due to central bank action so dysfunctional it is."

Think it through a sec.  The Federal Open Market Committee conspires via regular meetings to rig the interest rate and other aspects of the money supply.  Their member banks are privy to this information and help decide it.  These same member banks trade in virtually every market that exists, with enormous size.  It's rigged, via a conspiracy, resulting in a dysfunctional market (heads you lose, tails we win).  It's no different than deciding the payouts at a casino.

Fri, 08/10/2012 - 12:41 | 2694419 Neethgie
Neethgie's picture

Shall we start the south sea fund next?

Fri, 08/10/2012 - 12:58 | 2694455 EmileLargo
EmileLargo's picture

We already have a John Law Fund - it is called the US Government with Ben Bernanke in charge.

Fri, 08/10/2012 - 14:05 | 2694717 Mountainview
Mountainview's picture

None of these funds has an S&P benchmark. You are comparing apples and pears...

Fri, 08/10/2012 - 16:30 | 2695248 Panafrican Funk...
Panafrican Funktron Robot's picture

What would you benchmark them against?

Sat, 08/11/2012 - 05:38 | 2696613 Mountainview
Mountainview's picture

They are absolut return, so risk less rate,i.e. short term treasury at 0%...

Fri, 08/10/2012 - 14:39 | 2694847 Flaming Ferrari
Flaming Ferrari's picture

It's a CTA based in Holland. Dutch like Tulips. Simple.

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