Weasel word excuse –
“It has been difficult for hedge funds on the short side,” said Nick Markola, head of research at Fieldpoint Private, a $3.5 billion Greenwich, Connecticut-based private bank and wealth-advisory firm. “Funds were defensively positioned. Central bank action did bode well for equities and made for a more challenging environment for hedge funds.”
Drunkenmiller puts this excuse into context –
“We were expected to make 20 percent a year in any market,” Druckenmiller, 60, said in a Bloomberg Television interview on Nov. 22, referring to veteran managers such as Michael Steinhardt, Julian Robertson, Paul Tudor Jones and George Soros. “If the market went down more than 20 percent, we were expected to make more.”
The rip off –
Hedge funds, which stand to earn about $50 billion in management fees this year based on industrywide assets, are underperforming the benchmark U.S. index for the fifth year in a row ….
$50 billion in your back pocket for doing less than an index fund could achieve for the umpteenth time on a row
More here – Bloomberg