Hedge Wind Down

Discussion in 'Wall St. News' started by dealmaker, Dec 13, 2018.

  1. dealmaker

    dealmaker

    Hedge Wind Down

    Jabre Capital Partners chief investment officer Philippe Jabre told investors that he was selling down the fund's investments in a "disciplined manner" because the hedge fund did not anticipate the same opportunities in 2019 it had seen in the past. The decision follows those of 174 other hedge fund close-outs in the third quarter against only 30 new starts. Bloomberg.
     
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  2. REDP1800

    REDP1800

    the question here should be were teh hedge funds really jsut amking spread overe andover and over again and now the HFT synthetic MM hve taken that edge? which would mean that there really werent any good stock pickers after all? and warren buffet is not a stock picker or a trader.. he buys enormous positionsin companeis so he can influence them in ways that will make the stock go up.
    It should be alarming to investors that hedge funds are winding down. It might be a bigger danger sign that the market due to algos and computers is no longer safe period and rather than risk on for a few return percentage points.. maybe it is better and safer not to have to tell your 2 billion under management went to 300 million over night due to a computer glitch. If it can happen to KNIGHT trading i can happen to all of us.. wait until a BUG or VIRUS gets implanted in the machines!! Good luck
     
  3. Most hedge funds close because investors are pulling out funds. Seldom is lack of opportunities the real reason, especially when fund managers can earn guaranteed management fees even when they lose money. However, it does make sense for fund managers who do not charge management fees to close the fund due to lack of opportunities.
     
  4. > 30% down is truly huge by hedge fund standard. I won't be surprised investors will be pulling out their money after seeing such a big down year.

    https://www.ft.com/content/3d07e70c-fefc-11e8-ac00-57a2a826423e

    Jabre Capital, which was set up in 2006 and which has been managing roughly $900m, has suffered some of its worst returns over the course of this year, as main equity markets have fallen into the red. His Balanced fund is down 35.8 per cent this year, while his Multi Strategy fund has lost 30.5 per cent and his Global Convertible fund has dropped 16.2 per cent, with much of the losses coming during October’s market slump, according to numbers sent to investors and seen by the FT.
     
  5. dealmaker

    dealmaker

    There are ethical managers out there eg in the late 90s Jean-Marie Eveillard refused to invest in the tech bubble and was labeled past his prime, senile ( he was in his fifties) etc., was even threatened with sacking by the parent company Societe Generale but he did not relent and was vindicated and consequently saved millions for his clients...
     
    Last edited: Dec 13, 2018
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  6. REDP1800

    REDP1800

    everyone acts like hedge funds are having a bad year due to the mkt selling off or the volatility. it has nothing to do with that..they know howvto short, but you can not even take a short or a long for more than a few days. they would stick it out.because like you..they love the mkt too..the difference is when you pay massive slippage trying to make big trades. it kills your perfirmance. to me the writing is on the wall..structurally this mkt may never return over the long run ever again and its very likely funds could be drained from it. the algo tug o war only hurts investors in the long run due to slippage and no trend. its likely that stocks could be done for the next 5 to 8 years...before they say..wow..these algos are killing companies and jobs. if i was ceo of a public company i sure ad hell wouldnt want my lifes work to be at the mercy of bots.
     
  7. Stockolio

    Stockolio

    If you can not make good money in the market regardless of environment it is cause you are not good, period... Algo's are easily predicted cause they use a set of rules and never bend them, they are programmed to perform exactly what is written in the code, figure out how algo's that use wavelet transform neural networks think. Market junctures for the most part are vague and predictable as well. For call options at the moment, only materials with two sectors, gold mining ( little left in gold mines, most likely wont raise interest rates on the 19th and rally will go into mid Jan, and US dollar in decline by end of year if they do not raise rates ) Look at KL stock or ABX Nyse, you missed the boat on gold but uranium stocks have good growth left until end of business cycle, rest of account is long PUTs. I will post my graph and stats at end of 2019, and you will see what I mean. People do not think and constantly trade on the big names, if market is in bear trend right before the end of a business cycle, why own stocks ? Gold,Uranium, rest puts. It's not rocket science, I don't understand these people talking about 10-15 % returns being good, how !?
     
  8. ironchef

    ironchef

    I just don't understand, if hedge funds are truly hedging (claiming better risk adjusted returns), when the market is down a couple of %, it takes a special skill to hedged it to down -30+%?
     
  9. REDP1800

    REDP1800

    you have never traded institutional size. the bots are seeing it and front running the trades. gold gold gold..i own a lit of 10 buck jnug 2020 jan calls. a lot is 20 of them for me. i also own snap calls. anyway when u trade millions of shares execution can take hours..mkt front runs u lose % if mkt up 2% n u lose 1% getting in...yhen you lose 6% 5otal in and out. thats huge..no wonder they arecquitting
     
  10. TommyR

    TommyR

    lack of opportunities in future can be spotted with accuracy.
     
    #10     Dec 14, 2018