A long-short hedge fund is supposed to strive for a positive absolute return.
It’s ok for such a fund to lag when the markets rise.
It’s absolutely not ok to lag when markets fall.
Most hedge fund managers failed in October, with one notable exception: David Einhorn.
October was a bad month for many hedge funds. It seems a lot of them abandoned their traditional long/short hedge-your-bets approach and instead simply jumped on the FANG train. David Einhorn remained loyal to his