I know it\u2019s a clich\u00e9, but I\u2019m going to write it anyway: I\u2019m mad as hell and I\u2019m not going to take it anymore.<\/p>\n
I really just don\u2019t know what else to say about what\u2019s going on with hedge fund performance this year. The third quarter of 2008 is quickly coming to an end, and for the most part, hedge fund performance is abysmal. It looks like both the equity and fixed income managers are taking it on the chin. I have seen some funds down over seven percent, some down more then 20 percent and a number somewhere in between. The numbers are all over the map and really very poor.<\/p>\n
It\u2019s like a grisly car accident: I now for the first time in my life understand why people rubberneck on the highway. I can\u2019t throw my hands up in disgust, I can\u2019t turn off the television, I can\u2019t turn off the radio, and I can\u2019t stop reading newspapers, because I just can\u2019t get enough of it.<\/p>\n
Unfortunately, it doesn\u2019t seem likely that the tide will change anytime soon. There are a lot of people out there masquerading as hedge fund managers who, in reality, are doing nothing more than running expensive mutual funds. Simply put \u2013 they are not hedging!<\/p>\n
I don\u2019t blame these managers, though. They wouldn\u2019t have assets if they did not investors making investments.<\/p>\n
That\u2019s right: I blame the investors, specifically unsophisticated investors. It is their fault and theirs alone. These people all want to have a bit of the apple \u2013 the forbidden fruit. Well guess what, there is a reason it was forbidden. It\u2019s a bit of the reverse of the Garden of Eden story: In the case of hedge funds, the fruit is forbidden until you have the knowledge necessary to eat it.<\/p>\n
But that\u2019s not what unsophisticated investors want to hear. Every time, I go out to a cocktail party or every time I go out to an event, all I hear about is hedge funds. First the conversation is about how speculators are driving the cost of oil through the roof and wreaking havoc in the stock market. Then the name game starts: Who do know? How can I get access to that fund?<\/p>\n
Having a the cash and the name of the hot new fund isn\u2019t good enough. In fact, it\u2019s probably going to hurt you. Hedge funds operate in the ether. Therefore it\u2019s much more difficult to determine if there is any real value in investing in a particular hedge fund. Forget the hot name. Read the documents and perform due diligence. Ask questions and get answers \u2013 understand what is going to happen to your money once it is wired into the fund\u2019s bank account.<\/p>\n
So, as the third quarter draws to an end, and you\u2019re thinking about your plans for 2009, all I can say is remember to perform thorough due diligence. Find out if it is worth it. Gather as much data about any given fund manager from multiple sources.. Review the audit; get a background check on the manager. Talk to other investors. Ask questions and make sure you get answers. It is your money make sure you know what is happening to it!<\/p>\n
HedgeAnswers Chicago is Monday. It\u2019s going to be great. I hope to see you there. Learn more at www.hedgeanswers.com.<\/p>","protected":false},"excerpt":{"rendered":"
I know it\u2019s a clich\u00e9, but I\u2019m going to write it anyway: I\u2019m mad as hell and I\u2019m not going to take it anymore. I really just don\u2019t know what else to say about what\u2019s going on with hedge fund performance this year. The third quarter of 2008 is quickly coming to an end, and […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-3886","post","type-post","status-publish","format-standard","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/posts\/3886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/comments?post=3886"}],"version-history":[{"count":0,"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/posts\/3886\/revisions"}],"wp:attachment":[{"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/media?parent=3886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/categories?post=3886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aandcadvisors.com\/de\/wp-json\/wp\/v2\/tags?post=3886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}