It wasn't bad. Seriously, it was unprecedented for equities (especially Nasdaq) but very little spillover into the other markets which are of utmost importance for major trendfollowers like Henry (ie. currencies, fixed income, etc.). I'm sure he made some money on Nasdaq trends but lost elsewhere. His returns during those periods where not that bad I think although I don't have the data.
I understand your point, however, I would make the case that many of the smaller trend-following funds while struggling, are not fairing as poorly as their larger breathern. For all of us, both large and small, we need time and breadth to recognize the existence of a trend. Smaller choppy trends and constant reversals make it a difficult environment for trend-following strategies of all sizes to profit. It should be noted that smaller CTAs such as our own Schindler (although I do not know if he is a trend-follower), has faired well and in most cases significantly better than the larger more liquidity and product constrained beomoths.
FYI: To the best of my knowledge, Schindler is not a trend follower. He is 3rd generation Niederhoffer, trained by Niederhoffer 's protogee Monroe Trout. http://www.tradingmarkets.com/.site/stocks/commentary/satinterview/03172005-42848.cfm surf
OK, just keep in mind that by "scale," I also meant time frame. What may look like a smaller, choppy trend in one time frame may be more impressive in another, shorter time frame. The really big funds probably cannot maneuver very well in the very short time frames. You response resonates, however, I just wanted to ensure that you understood my context.
These are just way too horrible. Do you think he's gonna go bankrupt?? I mean, another year or 2 like these, and he's out. How do investors who put millions with him react? Does he like receive thousands of phone calls everyday asking him what's going on?
Q http://www.cass.city.ac.uk/airc/pdf/WP0019.pdf THE DANGERS OF MECHANICAL INVESTMENT DECISION-MAKING: THE CASE OF HEDGE FUNDS Harry M. Kat It has also become clear that hedge funds are not the miracle cure that many investors think or have been told they are. Again, this boils down to a matter of common sense. Anyone who is well calibrated to the world we live in will have extreme difficulty believing that there is a significant (and growing) number of people that are able to systematically beat the market to such an extent that even after deducting “2 plus 20” or even more the investor is left with a superior return. UQ
there is 14 trillion dollars sloshing about in hedge funds. most of this money is pursuing the same tired, worn out strategies. what's needed is something new,unique and niche oriented. it's out there, just need to locate it! surf
Certainly Not "that there is a significant (and growing) number of people that are able to systematically beat the market to such an extent that even after deducting â2 plus 20â or even more the investor is left with a superior return."