Also in this playlist...
This transcript is automatically generated
Think that this kind of rocked the hedge fund an equity land because news out this morning was that the world's biggest hedge fund firm it's called Bridgewater.
Got battered over this past month this is the latest figures show that the hedge fund industry continues to underperformed the broader market so in essence.
You could throw darts at a stock chart do better than what the hedge fund to whom you pay a lot of money is doing.
Some apple -- -- axial portfolio advisor works with institutional investors she and her company our advisors to the hedge fund world.
Let's talk about what the problem is and obviously what we're doing the story because the news came about the -- Dolly O who runs Bridgewater.
The sun but -- waterfront -- had excellent returns over several years they've had a very bad year.
You can see what they did over the month of April they are underperformed the S&P 500 year to -- that far underperformed the S&P 500 but what's.
Going on in in.
The land of hedge funds and I asked that because people pay a lot of money for better returns them back on your screen.
We'll -- first of all thank you so much for having me at the pleasure to be here but when I went today.
And that naturally hedge funds are gonna perform different mean then equity markets and -- S&P.
A lot of -- -- with a large institutional investors.
Had so much long equity exposure already at a really turning to their hedge fund portfolio to provided the first vacation.
So you would almost expect and hope for Biden's not the hedge funds would provide.
A different almost -- negative correlation to back but he market.
For for two -- twenty having that's a lot of money to pay for somebody who supposedly one of the smartest guys in the room by at look at forget Bridgewater.
A lot of hedge funds are getting shaken out in the recent jump in interest rates when you see that.
The ten year go from one point 9% yields at 2.5.
And -- of the -- from the geologic guy when it comes to this market.
That is going to shake out some some weaker players and we see that do we not.
You know our clients hire us bill did a diversified -- -- So there are -- to be Helm.
Bonds that don't fare well in certain markets and some that to batter the other and the strategies to better another market.
And I think that's what we're trying accomplish let's put up on the screen some that are doing beautifully.
And as we look at these names what are the -- what are their genetic make -- really doing that that have made them very successful -- that -- long equities which have had a great rally certain.
Only you know shareholders are becoming more vocal about changes they want to see -- companies and company -- are really listening.
These events are providing great catalyst for long short equity and the banks and hedge funds.
Also on the equity side -- you mention managers have been rewarded for their stock picking.
Which wasn't the case in 2010 and 2011.
And correlations were high and stocks -- left on fundamental and more on -- -- and look you've got you've got hedge funds that are commodity focus commodities have gotten killed lately so they're going to do poorly who else who else is we are you haven't PTA have been suffering that -- that CTA for commodity trading and back straight simple and not me.
The heat you know -- you mentioned Bridgewater some some -- -- positions but.
A lot of equity managers have been doing well you know this is their opportunity to shine and in the last couple -- and they just mentioned they haven't been doing well.
A lot of the mortgage fund.
-- fund focused on mortgages have been doing well.
And a lot of a bad and -- -- seven.
Well give us some inside scoop because you deal with a lot of these hedge funds is clients where are they looking to reduce their exposure right now yeah well so our clients by the institutions.
And they're paying out the Taliban which hedge funds to balance him.
So where conducting the due diligence on the hedge -- And they want to get access to our -- so what are you saying stay away from yeah.
So I say that we bill and they -- diversified hedge -- artfully you know -- just let's -- long term investors but we're not gonna say you know what.
Just because certain funds mortgage signs have been doing well the last couple quarters.
Who's to say they're gonna do well the rest of the year or the next hour and really just trying to build a diversified program that's gonna do well.
On the bottom market cycle would be the golf OK good to see thank you Samantha thanks so much for having me some math eleven -- of -- David --
Filter by section