Hedge Fund Manager? A question

The goal is because a hedgefund can lose 100% (like LTCM). How many mutual funds lose that? And the government doesn't need to deal with thousands of middle class people losing their savings to some jerk off scumbag.

Whether it's properly implemented or not is another topic.

 

yeah the gov would rather you lose 65% in one year to a scumbag mutual fund manager who doubled down on fnm and fre

 

LTCM might have lost a bunch of money, but didn't the Fed bailout them out?

 

AFAIK, those numbers are high. For funds that size it is actually more around 10-20% over anything more than a year or two. If you have a verified source that shows large fund returns in the 20-60% range then please provide a reference. According to Barron's top 100, there were only 6 funds that got out of the 20's over three years.

 

This is really not realistic.

There are various hedge fund databases widely available to the public, and "20-60% per year" is hardly a rule of thumb. Hedge fund databases typically, due to SEC regulations, are only available to those who self-certify as accredited investors (i.e., you click a button saying "Yes, I'm an accredited investor")... but you can look at HFR, BarclayHedge, hedgefund.net.

Even if you can't get into the database to look at individual funds, you can still look at hedge fund indices.

http://www.hedgefund.net/hfn_public/marketing_index_new.aspx?template=realtime.html

https://www.hedgefundresearch.com/mon_register/index.php?fuse=login_bd

 

most of the hedge fund indexes (in the above two links) show negative for the year.

Am i reading it right? so most hedge funds (which are part of these indexes) are bleeding ytd?


-gariki

 

You could, but it's a lot less likely. Fairlhome is having a disaster of a year (after many good ones); but they will never go to zero.

And you rarely hear of mutual funds that have 20% drawdowns in a month (unless the overall markets are down like 15%). In hedgefunds it happens all the time.

Also, you never hear of fraud in mutual funds, but you often hear of fraud with hedge funds.

 

In one word: yes. Great majority of funds are in the red.

 

Yes, modestly... There's also a bit of skewedness due to Paulson.

 

Not sure why you say that. Most indices are not weighted by assets, so Paulson shouldn't have an outsized effect on results.