Year ends with trading performances whether fast or slow, algo or guesso, challenged to produce alpha mama. Now there were some standout failures by big name hedge fund managers like Harvard MBA John Paulson. Genius. All that money he made front running mortgage paper with the help of Goldman Sachs is gone and probably any other profits he has made as a manager in the last several years. All those engineered financial derivatives created by the expensive talent in banking and investing on Wall Street are still beating inside the balance sheets of banks and the prime rescuer, the Fed.
There are some positives however. Europe is looking good for a vacation next year. Oh I guess that's it.
The turbulence from volatile swings over this last year has convinced some this kind of action is here to stay. However, rarely has that been true in the over 30 years I have been around markets. The only thing for sure is the action coming in 2012 will be different enough to require trading operations to be vigilant. For most hedge funds, if up does not appear, it will be another disaster for their returns.
