Posts Tagged ‘hedge funds’
Unhedged Is Best
In 2012, hedge funds rose an average of 3% compared to 13.4% for the unmanaged S&P 500. Worse, over the past decade a portfolio of 60% stocks and 40% sovereign bonds returned 90%, while hedge funds eked out a measly 17% gain. While some hedge funds do extraordinarily well, that’s inevitable with 8,000 funds! But…
Read MoreBillions Blown
The $2 billion blunder by J.P. Morgan, while not pretty, is no clarion call for added regulation. Rather, it shows that with enough capital mistakes of this magnitude can be easily absorbed. That is, while regulations can be skirted, and rendered obsolete due to new financial instruments and top notch lawyers, there is nothing that…
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