What a week.
The recent news that CALPERS is abandoning the hedge fund industry sent shockwaves around the investment management community. Investors and managers alike are scratching their heads wondering where will all the cash go? Of course, many of the naysayers of the hedge fund community blame CALPERS decision on the fees, but I think that is malarkey. I think it is simply because CALPERS, quite frankly, is just too big. In order to allocate money in a meaningful way, the pension plan’s powers-that-be must find large funds that can accept large assets, and well dear friends, we all know that there are not that many good large funds to take all […]
It is not the hedging the stupid.
The recent news that the SEC is going to be focused on alternative based mutual funds and exchange traded funds is laughable at best. It seems that these so-called hedge fund like or hedge fund replication products have the potential to wreak havoc not only on the market but individual investors according to the powers that be. However, my question is this – isn’t better to have products that can profit when markets rise and fall as opposed to only making money when markets rise? I think every investor regardless of the size of their portfolio would like to be able to make money regardless of the direction of the […]