It is about process as well as performance
The sharks have smelled blood in the water, are circling, and are ready to chomp. Clearly, there’s excitement in newsrooms across the globe over a number of well-known hedge fund managers having once again suffered significant losses in November and that their year-to-date performance is abysmal at best. I won’t take time to name names; you can just plug “hedge fund performance” into Google to see who’s down and by how much for the month and year. And while the poor performance is troubling, I’m also concerned about the process they’ve been using. Understanding the investment process is key. It is important not only to know the managers’ strategy, but […]
Buyer beware
I highly suggest reading Jason Zweig’s “The Intelligent Investor” column in last Friday’s Wall Street Journal. It‘s a great piece about why investors need to be wary of hedge replication products and other types of investments that track or follow well-known investment managers. He astutely points out that there is more to investing then simply copying someone else’s ideas. Investing, you see, is about doing the research. It is about getting dirt under your fingernails and making decisions based on facts and figures, not simply filings. It turns out that most of these follow-on funds use regulatory filings to create their portfolios; that is, they put on positions based on […]