Salient to Investors: Foreign investors are adding Treasuries at the slowest pace since 2006 amid the worst rout in 4 years, and own less than 50 percent of Treasuries outstanding for the first time since March 2012. However, China boosted its stake in 2013 to the most on record – adding US bonds in 7
READ MORE... →Salient to Investors: Matthew C. Klein writes: Hedge Fund Research says the S&P 500 index with dividends reinvested beat the average hedge fund over the past decade. There are always periods when certain asset classes did better than others. E.g., gold from the middle of 2001 increased by more than 600
READ MORE... →Salient to Investors: After a decade as rock stars, hedge fund managers seem to be fading just as quickly as musicians do. Generating “alpha” is slipping further out of reach. Goldman Sachs said in May that hedge fund performance lagged the S&P 500 index by 10 percent this year, while
READ MORE... →Salient to Investors: Matthew C. Klein writes: Hedge funds et al can now solicit the public for capital by advertising, a welcome development. It is easy to avoid scoundrels by sticking to index funds. Only the greedy get fleeced by offers that are too good to be true. Most finance
READ MORE... →Salient to Investors: Hamilton “Tony” James of Blackstone Group said stocks were a fool’s game compared with alternative investments. and investing in alternatives makes sense even when they underperform. James said the return from these idiosyncratic investments are very uncorrelated to the broader markets, so portfolio volatility falls. Hedge funds have been
READ MORE... →Salient to Investors: The number of hedge funds investing in gold is at the lowest level since 2010. Farhan Mumtaz at EurekaHedge said hedge fund performance declines tied to volatility and withdrawals led either to closures or a shift in strategies – the number of funds investing in gold fell
READ MORE... →Salient to Investors: John Bogle writes: While the idea of market timing is simple, many hedge fund managers have tried but precious few have succeeded. Joe Carlen, author of “The Einstein of Money”, said the Benjamin Graham Joint Account – the predecessor to Graham-Newman Corporation – lost 70% from 1929 through
READ MORE... →Salient to Investors: Bob Rice at Tangent Capital writes: Despite negative headlines, sophisticated institutions keep adding to their $2 trillion invested in hedge funds. Benjamin Graham devised a way to make money regardless of market direction by buying a stock he liked, and simultaneously selling short one he didn’t. Over the
READ MORE... →Salient to Investors: New York City’s retirement system is the only one of the 11 biggest US public-worker pensions that refuses to manage any assets internally. The typical fees for hedge funds and private-equity and real-estate firms is 2 percent of assets plus 20 percent of profits. Last year, three city pension funds
READ MORE... →Salient to Investors: Paul Tudor Jones at Tudor Investment apologized for saying that women cannot compete with men as macro traders after having children, that you will never see as many great women investors or traders as men, and women often turn their focus to raising children at a crucial time
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