Live by the sword, die by the sword.
Bloomberg reports that Goldman’s formerly $10 billion hedge fund, Global Alpha, is down 26%, following a decline last year of 9%. Although there have been rumors of big losses at Global Alpha and elsewhere, this news was posted on Bloomberg after the markets closed. One has to wonder if it was the culprit behind the recent big cap stock sales.
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Renaissance’s Stock Hedge Fund Falls 8.7% in August
http://www.bloomberg.com/apps/news?pid=20601087&sid=atlWKnI7gccw
The link does not work.
Here is the link I believe anonymous was trying to post.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9eFwgjvcC8Q&refer=home
Hope it works
It looks like a lot of Hedge Funds are running into trouble. It looks like their hedges are becoming unhedged. Previously negatively correlated bets are becoming positively correlated, and uncorrelated bets are becoming correlated.
I understand that this is because some of them have had forced sells
due to margin calls and to raise cash to try to be safe in the current deteriorating situation.
What’s going on?