Monday, May 2, 2016

Greedthink: UnHedged Funds Are Imploding

Dart throwing monkeys perform far better than the vast majority of hedge funds...

"Hedge funds lost 1.9 percent in the first quarter, according to Hedge Fund Research’s global index, the poorest performance since 2008. The industry had net outflows of $16.6 billion in the last two quarters, the most since 2009, according to HFR. In 2015, 979 funds closed, more than any year since 2009, according to the research firm."

Now, according to Zerohedge, they're all piled into the exact same momentum trades. What could go wrong.

It gets worse, or better, in a delayed act of justice, Congress hammered hedge fund "activist" (blackmailer) Bill Ackman last week for Valeant's practice of buying pharmaceutical companies and then jacking up prices. 

Here is the punchline, despite jacking up their prices, the hedge fund favourite stock has tanked due to the company being accused of running a ponzi scheme by using a subsidiary retailer to stockpile inventory.

This is a ponzi scheme where the only ones who got conned were hedge funds: