Hedge This

Reports still flow in about the bad performances of the super hedge managers which really began in the third quarter of last year. Once again, the story is about a group of eggheaded PhD'd non-traders, crushed by illiquid strategies that were obviously not as correlated as they thought with positions the size of a mountain range. Monkeys with darts could utilize the same office space and claim the paper on the floor would be worth more than the paper these geniuses bought. The truth is these guys got tremendously greedy and lazy as they made markets with theoretical constructs in order to carry massive positions in pursuit of alpha. What a joke. Big fails and real big fails every time.