Some Hedge Fund Folks Are Probably Hoping The Facebook Situation Doesn’t Get Worse

I’ll tell you what, if this Facebook debacle continues to spiral out of control, it’s going to be interesting to read some of the fund letters…

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This Is ‘Atypical’: Hedge Funds Ride Out Correction By Sticking With Most Crowded Positions

Well in a testament to the relative merits of doing the opposite of what David has been doing by simply riding the wave in the bubble stocks (with leverage) at a time when nothing makes any sense…

The Last Time This Happened, The World Ended…

“What do you mean, ‘we,’ Kemo Sabe?”

The Black Hole Revisited

Don’t get sucked in.

Hedge Fund Stock Exposure Hits New Record High, But…

Did you wake up on Wednesday morning asking yourself whether the 2 and 20 crowd’s equity exposure hit new record highs in Q3?

The Most Overpriced Asset In The World?

“…they turned on poor Hugh like a pack of rabid dogs.”

Here’s Why Equity Hedge Funds Had Their Best Start To A Year Since 2009

Spoiler alert.

The Problem With ‘Simple’ Markets

“The only people who don’t think this market is simple are hedge funds and perma-bears who try to make it complex. Yet even as they are continually wrong, they are right.”

‘Swashbuckling’ Pirate: It’s Your Fault That Macro Fund Managers Suck At Their Jobs

“More generally, however, many macro funds aren’t structured to make money by “trading macro.” Investor pressure to deliver steady returns has taken macro traders away from making big-picture bets on economic and policy developments.”

If Buffett Were Trading Macro, He Would Have Been Fired, ‘Swashbuckler’ Says

“What if Warren Buffett’s Berkshire Hathaway had a 12% annual stop loss, after which it would quit trading until the new calendar year?It turns out that Buffett would have been stopped out in 18 of the 30 years.”

Hedge Fund Long Stock Exposure Tags Record At $1.36 Trillion

“Based on the quarterly 13F filings and estimated short positions of the equity holdings of 952 funds, we estimate that hedge funds’ net stock exposure increased to $792bn notional from $730bn QoQ, surpassing the Q2 2015 peak to a record high. HF long positions stood at $1.36trillion notional at the start of Q2 2017, tied with the Q2 2015 high.”

Chart Of The Week: Some Folks Are Trying To Pick Stocks Again

Right, so the thing about “alpha” is that it’s really fucking hard to generate when benchmarks only go up. Throw in the rampant proliferation of retail-friendly vehicles that track those benchmarks at a cost of just a few basis points in fees and you’ve got a veritable nightmare scenario for coke-sniffing, Perrier-Jouët-chugging, “2 and 20”-charging, Hamptons…

Mutual Funds Versus Hedge Funds: Where They Agree And Disagree

Recently, I wrote some stuff about hedge funds and mutual funds. If that’s the kind of thing you’re into (or if you want to read about hookers, groupies, Xanax, cocaine, and Maseratis) you should check out these two posts: Hedge Funds Are Still Trailing The S&P And Cocaine Ain’t Gettin’ Any Cheaper 2/3 Of Growth…

Hedge Funds Are Still Trailing The S&P And Cocaine Ain’t Gettin’ Any Cheaper

Regular readers know we think it’s a cryin’ fuckin’ shame that low-cost, passive investment vehicles that track benchmarks inflated by the post-crisis central bank liquidity tsunami have all but relegated active management to the dustbin of history. As we wrote in “One Manager Warns: ‘Today’s Weapon Of Mass Destruction Is A 3-Letter Word: ETF,‘” it’s almost as…

One Manager Warns: “Today’s Weapon Of Mass Destruction Is A 3-Letter Word: ETF”

“The weapons of mass destruction during the Great Financial Crisis were three-letter words: CDS (credit default swap), CDO (collateralized debt obligation), etc. The current weapon of mass destruction is also a three-letter word: ETF (exchange-traded fund). When the world decides that there is no need for fundamental research and investors can just blindly purchase index funds and ETFs without any regard to valuation, we say the time to be fearful is now.”