That giant sucking sound you hear…

Man, has this game gotten tough.  Anyone who tells you it’s easy is a charlatan.

Even the supposed “best and brightest” in the hedge fund industry are struggling – and the investors are saying hasta la vista.

Here’s Steve Eder at the Wall Street Journal:

Hedge-fund investors, rattled by lackluster performance, yanked more money from the industry than they added during the final months of 2011, data released Thursday showed.

The $2 trillion hedge-fund industry saw net investor withdrawals of about $127 million in the fourth quarter, according to data by Hedge Fund Research Inc. It was the first time investors had collectively pulled out more money than they put in since the second quarter of 2009, when the markets were still digging out of the worst of the financial crisis.

While the net withdrawals amounted to a tiny portion, 0.007%, of the industry’s total assets, the pullback signals that some investors are losing patience. In each of the past three years, hedge funds’ average returns have trailed the benchmark stock indexes, including the Standard & Poor’s 500-stock index.

The amounts are small, but the chasm between large funds and small is widening.

It’s not enough to just be a hedge fund anymore.  Now you have to actually perform.  Big shift.

Source:

Investors Pull Cash From Hedge Funds (WSJ)

 

 

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. DevSecOps definition commented on Jan 18

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2012/01/20/that-giant-sucking-sound-you-hear/ […]

  2. replika rolex commented on Jan 19

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2012/01/20/that-giant-sucking-sound-you-hear/ […]

  3. Liberty-pumps Pro370-Series manuals commented on Jan 21

    … [Trackback]

    […] Here you will find 31552 more Information to that Topic: thereformedbroker.com/2012/01/20/that-giant-sucking-sound-you-hear/ […]

  4. paito warna sgp commented on Jan 30

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2012/01/20/that-giant-sucking-sound-you-hear/ […]