I wonder if some of these investors that paid some of these guys 2% management fee and 20% performance fees are regretting their decisions? I mean $100 billion loss in one month sounds pretty bad for money that is supposedly "hedged." Also this deleveraging and redemption from Hedge funds tanked the overall market in October.
Hedge fund selling has been widely cited as one of the reasons for the increase in volatility in equity and bond markets during October. The Dow Jones industrial average fell 14% during the month, while the Standard & Poor's 500 index declined 17%.
It is also the reason that we will see everything knocked down right up until this Friday when quite a few funds have a deadline set for redemptions for the rest of the year. I have a feeling that there may be a slight Santa Claus rally as these funds purchase some of the winners back that they were forced to sell to satisfy redemptions. I mean there are some quality stocks out there that are selling for values at just a little higher then their cash hoards.
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