Search Results for: hedge fund

Hedge Fund Equity Exposure Great chart showing that hedge funds’ equity exposure is near their lowest since the global financial crisis. Picture source: J.P. Morgan

Hedge Fund Gross and Net Leverage Despite the trade war, hedge fund leverage remains high, compared to the average level of the last five years (aggregated data from Goldman Sachs Prime Services, as of August 19, 2019; should not be relied upon as a comprehensive view of the market). Picture source: Goldman Sachs Global Investment…

Hedge Fund Portfolio Density and Turnover Hedge fund portfolio density has steadly increased, and fund turnover has declined over the past decade. High concentration risk can lead to high losses and affect the financial system. Picture source: Goldman Sachs

S&P 500 and Hedge Fund Exposure While the S&P 500 is at all-time high, hedge funds increase their exposure to equities (last = 0.52). Picture source: Sentimentrader

Performance of Hedge Fund Index vs. S&P 500 Hedge fund returns have not been as good as those of the S&P 500, but volatility has been lower. Picture source: Richardson GMP

Hedge Fund Industry Outperformance – Negative over Past Decade The chart below shows how it’s hard to beat the market over time. Picture source: Greenline Partners LLC

Estimated Number of Hedge Funds Launched or Closed since 2008 Can hedge funds deliver higher returns than passive investing? Not really. But many investors still think they can achieve higher returns with active trading than with passive investing. The chart below shows that it is really hard to outperform the market. As Warren Buffett said,…

“Hedge Funds Are Shorting the VIX at a Rate Never Seen Before” -Bloomberg This certainly won’t not end well. Why do we never learn some lessons and repeat the same mistakes? Picture source: Hedgeye Risk Management LLC

Dalio Says U.S. Two Years From Downturn as Tax Cut Benefit Fades Hedge fund manager Ray Dalio speaks with Erik Schatzker about the next downturn and the impact of tax cuts. He also discusses debt cycles and the fact that central banks should control the level of debt and take responsibility for bubbles. https://www.youtube.com/watch?v=X1xcQKIl850

What About the Predictive Power of the Fed? As former Fed policymaker Narayana Kocherlakota said in 2016: “Don’t rely on FOMC forecasts of future fed funds rates.” Why? Because the economy is often shaken by crises and does not evolve as expected. Picture source: Hedgeye Risk Management LLC