click for larger graphic
hfperf0505141_big
Source: Bianco Research

 

Yesterday’s discussion about the Sohn Conference led to a few interesting e-mails discussing fees and performance (this is a favorite subject of ours: see this and this) and several readers asked to see a chart of specific measures of performance. Continues here

Category: Hedge Funds

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “Hedge Fund vs S&P500 Performance”

  1. DeDude says:

    Now lets see the personal income of those who run S&P 500 index funds vs. those who run hedge funds. Is it time for a ban on placing tax-sheltered funds with hedge funds or any other 2+20 scams?

    • Orange14 says:

      Probably cannot pass a law banning bad behavior on the part of investors but it’s always a cautious reminder to never be a sucker!

      • DeDude says:

        How about passing a law that say if you want to do tax-advantaged investments we will not allow that part of the money “we the people” are handing to you (via the tax advantages) are handed over to predatory fund managers. If you must, then you can invest with these leaches in regular accounts not subsidized by tax advantages.

        After that we could pass a law that treat the rent-seeking income of those managers just as any other income when it comes to taxation (or maybe such non-productive and harmful income should be taxed at twice the rate).

  2. Concerned Neighbour says:

    Not surprising given the disposition of the greatest hedge fund of them all; and most suspect they’re forever long at any price.

  3. RW says:

    One of the biggest private equity deals in history went bankrupt last week

    Why are private-equity firms behind Energy Future deal the only ones coming out okay?

    Wealth is never having to say you’re wrong.

  4. Livermore Shimervore says:

    My reading of that bull market chart is that it’s not good to be below the horizontal line and still ask for 2/20.
    No doubt the hedgies will come back with a bear market chart showing how the roles are reversed! that their strategies shine when the S&P is in down in the dumper thus making 2/20 look like bargain..

    • rd says:

      Success with hedge fund investing is simple. You get out of your hedge fund at the bottom of the bear market and buy it back at the peak of the bull market.

  5. kaleberg says:

    I always had the impression that hedge funds were what you set up to provide a job for your son-in-law so he could provide for your daughter properly without having to worry about him screwing up your business. I’ve seen a few of these set up over the years. Some even make money.

  6. wetware says:

    “It’s far more profitable to sell advice than to take it.” [ Steve Forbes ]