Only 3 hedge funds beat the market this year

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amberale

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amberale
Dec 31, 2021 51 Comments

S&P is up 29% and only 3 hedge funds outperformed it. Rich people paid 2&20 fees to have their money lost in fancy ways. Great lesson for investors.

Only 3 hedge funds beat the market this year

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TOP 51 Comments
  • Snowflake
    🧬🇺🇸💥👻🧠🫀🫁2

    Go to company page Snowflake

    🧬🇺🇸💥👻🧠🫀🫁2
    I am curious on the accusations made. Are rich people that dumb with their money or is there something us “normies” don’t know?

    Rich people possibly can’t be that daft. They can just easily put money into SPY or other areas of the market that normal people have access to.
    Dec 31, 2021 13
    • Google
      amberale

      Go to company page Google

      amberale
      OP
      I’m curious what your age is. In the modern era, investors surely do choose funds based on performance. That demand influences strategy. Hedge funds also internally calibrate in mean-variance space. As much as variance (risk) matters, there are several behavioral studies which show improved distribution means (returns) are much preferred under CARA (and lesser IARA). Many funds also failed to hit their own hurdle rates.

      Furthermore, lowering volatility is neither the sole nor primary goal of hedge funds. If it was, they could just hold cash and have no risk of losing money.

      [Yelp deleted his comment]
      Dec 31, 2021
    • Yelp
      you.

      Go to company page Yelp

      you.
      I never said performance is irrelevant. But you're still under the impression that hedge funds are seeking to beat the market in a given year (or in general). That's not their purpose. If investors wanted market returns they'd invest in the market. I'm not sure why you're so bent out of shape about hurdle rates. All that means is some PMs didn't get Christmas bonuses
      Jan 1
  • Hubspot
    khormcjel

    Go to company page Hubspot

    khormcjel
    Hedge funds don’t exist to beat market gains. They exist to minimize market losses. Rich people who have successfully protected their wealth don’t care about YTD returns in the market
    Dec 31, 2021 1
  • Hedge funds exist to hedge your funds.. dumb post
    Dec 31, 2021 2
  • Bloomberg
    AntiTaxxer

    Go to company page Bloomberg

    BIO
    Taxation is theft
    AntiTaxxer
    The reason hedge funds never seem to beat the “market” (which for most people is just the S&P 500) is the fact that the S&P is a market cap weighted index. The top 25 - 50 companies in the index have more of an influence on the index’s performance than the remaining 450. And over the past few years, the top 5 - 10 companies have been having an abnormal amount of influence over “the market” due to their massive market caps. No self-respecting hedge fund manager would overweigh 5 companies in their portfolio and call it a day. I mean, the word hedge should give you a clue of what their strategy is.
    Dec 31, 2021 10
  • That's what happens when you sit out of crypto
    Dec 31, 2021 1