I wonder why this is the case? According to Hedge Fund Research Inc., 291 funds were liquidated in the first quarter, with just 206 new funds started. Moreover, clients pulled a staggering $15 billion from these ‘vehicles’ in the first quarter, a trend all too familiar with many stalwart players in the investment business.
Over the past 12 months, 1,053 funds have shut the fuck down, while a mere 910 were started.
While funds like Pershing Square and their big, stupid, bets continue to mesmerize people, the average Clarence in these funds are getting smoked the fuck out–so they’re opting to send their money to their local discount house and subscribe to Exodus instead.
The allure of the hedge fund industry has been damaged, forever, I think. Having been in the business since the late 90’s and keenly aware of the needs of people with money, it’s apparent to me that more and more people want to take control of their finances and try to learn how to do it themselves, especially since their experiences with hedge fund investing have gone grimly these past few years.
Somewhere along the way, hedge funds forgot how to hedge. They’ve morphed into 3x Direxion asshole vehicles, with casino styled PMs at the helm.
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Hedges dont do real research. They are built by greed, so will ulimately fail with volitlity.
“Somewhere along the way, hedge funds forgot how to hedge. They’ve morphed into 3x Direxion asshole vehicles, with casino styled PMs at the helm.”
That’s so good I’m stealing it.