Performance of Hedge Fund Index vs. S&P 500
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. Image: Richardson Wealth
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. Image: Richardson Wealth
Hedge Fund Industry Outperformance – Negative over Past Decade The chart below shows how it’s hard to beat the market over time. Image: 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? Image: Hedgeye Risk Management LLC
Bloomberg Dollar Spot Index and USD Bets Leveraged Funds Investors, particularly hedge funds, are showing a strong bullish sentiment towards the U.S. dollar, with positioning now at its highest level since January 2019, while Goldman’s strategists anticipate potential further dollar strength. Image: Bloomberg
U.S. Stock Market’s Daily Volume U.S. stock trading volumes surge, as retail investors face down hedge funds. Image: Financial Times
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
Asset Manager Net Positioning Asset managers are so optimistic, they’re buying stocks like it’s Black Friday and every deal is a steal! This behavior raises concerns about excessive optimism and indicates a potentially overheated market. Image: MarketDesk Investment Committee Handbook
FMS Investors – Net % Saying They Have Taken Out Protection FMS investors are increasingly less hedged. Is this a cause for concern? Image: BofA Global Fund Manager Survey
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. Image: Hedgeye Risk Management LLC