Portable Alpha

What the Hedge Funds' Bad September Could Mean for Markets

I think you are slightly overpessimistic. Hedge funds, like most other entities and individuals in various respects, they differ from one another. It's normally a pyramid structure, basically only a few stand on top can beat the market/index/or whatever variable. Which is why, you supposedly elect 100 + 425 + executive branch folks to represent 300 million + people, and which is why there are established ranking system in literally every aspect of our life, i.e. no.1, no.2 and no.x investment houses and commercial banks. [I'm not giving some elitism b.s., just a statistical fact with common sense] Hence, hedge funds are no exception, they are human beings as well, just slightly better informed, more motivated and fairly well compensated, but as you've implied they are not much different than common folks anyhow.

My point tho, it's imperative for investors and money managers to stay put and not panic. Easier said, I know, but that's pretty much the key, well, on top of being able to think outside the box and inside of it, as well as combining composure, flexibility and adaptability to beat the stress and whatever else that shall be beaten.

Why The Paulson Plan Won’t Work

I'm with J.D. 110, tho it's definitely a good one by Dave.

But perhaps asymmetric information is inexorable and such scenario will be played out like it did and it does, which is just sad.