Any one else doing badly this year?
I know the markets are up generally this year, but seems like funds seem to be doing poorly this year relative to last year (after a banner year last year). This year has been a struggle to say the least.
I know when we're doing bad when all I hear is yelling from my PM, including a lot directed at me. Kind of sucks to be honest, because every mistake seems to be magnified right now
Well, can't yell at people who already got canned.
How is ur fund doing?
I recently watched a panel where Mike Rockefeller of Woodline talked about this. Believe he stated that even though the L/S equity funds were overall up 8% as a whole. However- Alpha generated is down 7% per MS PB.
I hear some L/S funds are struggling, quants are doing ok.
can you name any? Just curious
Past month / two weeks were tough for most stat-arb shops.
Yes correct, it's been tough. YTD seems about average though for most geographic regions.
Woah where do you work? I’ve worked at a bunch of funds now and have only ever seen people yell at advisors / external parties so what you’re describing is outside the norm. Heated debate is one thing, but yelling at coworkers is not ok.
Small cap Hf
trading desk dynamics can quickly break down under stress/bad performance, causing a lot of resentment. Gotta power through it and if your PM still is an ass, then feel free to leave
on the macro side, lots of funds have been hurt by the reflation trade and coming from 2020 where they had stellar performances leading to capital inflows, yeah it's a struggle
Learn 2 short, mr LO smid cap
Shorting is a losing business
Not sure why I’m getting MS, but this is the truth in our industry.
Do you work at a “hedge fund” mr mutual man? How do you charge those fees? Friendly investors you got there!
I work at a 2/20 HF
That fee likely has a hurdle rate pegged to an investor chosen small-cap index, if not, that is a great deal and the founder must have had some magical years to be able to retain it. Please correct me if I have been mistaken. If you guys are guys are moderately hedged (30-50% net exposure), there should still be some outperformance on the relative level.
Hope for all the best and in tough times usually, there are also great lessons to pick up. Keep your head up and next year will be better.
Good funds make 0% on shorts over time. Maybe those are the great funds.
It's clearly worth doing if you can do it well
Just have your PM YOLO AUM into TQQQ. Seems to have worked for the 29 year old hedge fund bro who has grown his PA to $34MM by buying and holding TQQQ
Just make sure to move those alpha $$$ back into FAANG, two days before year-end reporting.
Nah bro the real deal is wiring the money to a crypto exchange, buying a proof of stake coin with daily payment like XTZ, buying a derivative to hedge against downward price fluctuations, staking the coin at 5.5% APR, then converting it back to fiat just before reporting
Yep - i hear across the street that even though the market has been stable from a return perspective, alpha has been harder to come by
What is the context? Are you at a L/S or quant or macro or etc. MM or SM?
I hear lot of l/s desk have negative alpha this year although that gets offset by positive returns from beta. Hopefully it's going to be fine
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