April 2016

Smart Money Insights: Weekly Brief Apr 11

The start of the second quarter saw equity markets decline – continuing a pattern, the S&P fared better than pretty much any other index.  The whipsaws in the market this year are taking a big toll on active investors.  In March, the average large cap fund underperformed the S&P by almost 800 basis points on an annualized basis – a record going back to 1998 – and less than 20% outperformed the index – also a record low.  In some areas, like growth funds, the numbers were far worse.  Hedge funds continue to have problems with crowded trades, and technical …

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Smart Money Insights: Weekly Brief Apr 4

In the words of one hedge fund manager, “At least it’s over.”  This is the typical refrain about the first quarter – for many, what was supposed to work, didn’t.  Small mistakes led to punishing losses.  “Prudent” de-risking in February locked in losses after six weeks of relentless market declines and caused many managers to watch in disbelief as the markets recovered by the end of the quarter.  “Short covering” and unwinding of popular trades inflicted larger than expected losses on some preeminent fund managers.  Here’s a recap of what was working and what wasn’t: Recession Risk is Down Hedge …

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