Minimal Returns
Three funds outperforming the S&P
Per - Litquidity
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Get that hedge fund trash outta here
A lot of those funds are not even attempting to beat the s&p. Would need to see sharper ratios to compare.
Impossible to justify those numbers. That’s embarrassing
The negative ones yes. Since when is a market neutral strategy returning near 10% considered bad?
When you underperform the S&P by 15%. Those numbers are abysmal. Autists in their boxers taking dabs all day are beating them.
That’s not how those funds work (and their clients know this). A market neutral strategy shouldn’t care if market is up 25% or down 25%. If you are a client that wants steady X% returns then you invest in these. Now, when the s&p has consistent 20% years it looks foolish, but again, may of these funds are not net long and not targeting the s&p as a benchmark (and if they did, if you are truly market neutral and L/S, it would be easy to just go overweight/underweight stocks within the s&p)
"You are only as good as your record says you are" - Bill Parcells
Sure, but it’s like comparing a 50 win baseball team to a 10 win college football team. Different benchmarks…
This is an absurd analogy. It isn't two different sports. Comparing football to baseball would be comparing public to private equity. You're just coping
A better analogy would be comparing SEC FB to MAC FB - the MAC still blows in the grand scheme of things (like these returns)
I’ve already explained to you once, it is pretty simple, it is a different investment strategy with a different target. These firms have clear targets, their clients know what the targets are (risk, return, drawdowns etc). I’m not saying they all do a good job, but comparing to the S&P (especially some of the firms on that list) is an absurd exercise.
My point still stands that those returns are trash though which ultimately is all I was saying. I never brought up strategy and I'm aware there are different strategies. Makes it less embarrassing I guess but still embarrassing, nonetheless.
I’ll try one more time, yes not all the funds are market neutral, but some are, and some are multi strategy, some are macro, etc. Comparing these to the s&p is a foolish exercise (imagine taking a bond manager and comparing their return to the s&p). Negative is never good, so those are bad. Low single digits are usually bad. Once you get to ~10-15% you are entering the area that some (not all) of these funds actually target. So a 10% year for some of these funds (macro, market neutral, etc) is around what they’ll target, it doesn’t matter what the s&p does. The comparison is where people go wrong, if over time you have a similar sharpe (and other return and risk metrics) between the s&p (as a comparison for an alternative investment) and your fund, you are probably doing something off (as an investor can choose to just passively invest) - if someone believes that is true going forward then it is hard to justify an investment in your fund. The truth is, the good funds have much better “holistic” metrics than the s&p. So, to reiterate, as an alternative investment over time the comparison can make sense, in any one year it isn’t the right comparison to make, so not sure what returns you are calling “garbage” but it seemed like you think 10-15% is trash, and I disagree.
Tiger trailing inflation lmao
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