Just so we’re clear, the reason investors choose hedge funds, private equity funds, venture capital funds, mutual funds and other investment vehicles is that they’re looking to make money.
I know this may come as a shock to some people, especially the ones who write for the popular press, but, once again, the reason people invest is because they are looking for positive return. It seems that this notion is lost on many, especially those who are writing about how poorly hedge funds performed in the latter part of 2015 and how bad the markets are doing right now. It’s as if the reporters, and especially their editors, are happy about the sea of red ink flowing from pretty much every corner of the investment universe. I just don’t get it. Bad performance, whether it is in a hedge fund or in the market as a whole, is not good for anyone.
On the other hand, down markets are good for one thing: picking managers. It’s during times of extreme volatility and uncertainty that the truly good ones rise to the top. Bad markets allow us to see who really does know how to pick winners, to hedge risk and to keep their wits about them when everybody else is losing theirs.
The next few months are no doubt going to give us wild ride after wild ride. I suggest that you keep tabs on those managing your money and be on the lookout for those who perform well amid the carnage. It’s those funds and managers that you want to stick with for the long term.
Operations for Alternatives is just a few weeks away, the hotel is selling out, slots in the conference are filling up and the speakers are undoubtedly working hard on their panels. If you haven’t yet registered for the single largest gathering of operations professional in the United States, I suggest you click here and do it now. You don’t want to miss OFA 2016.
THINGS THAT DRIVE ME CRAZY
Comcast is once again in my sights. These people are the worst. The cable TV goes out, the internet is slow and they admit during their commercials that they can’t make their appointments. What IS wrong with this company’s powers-that-be? They need get focused on customer service, to install technology that works and to stop trying to buy loyalty for $20. Remember, the customer is paying for service, so deliver it.