Friday, 24 October 2014
Last updated 18 hours ago
Oct 11 2011 | 12:17pm ET
Hedge fund RK Investment Advisors soared more than 140% in the third quarter—by many measures among the worst-ever three-month periods for the hedge fund industry.
Kinnelon, N.J.-based RK's Speculators Portfolio bet against U.S. stocks in anticipation of the end of the Federal Reserve's second round of quantitative easing. The Standard & Poor's 500 Index plummeted over the past three months, which began with the end of QEII.
"'Don't fight the Fed' is the theme of the last two years," RK chief investment officer Randy Kurtz said. "Even in the face of bad news, when the Fed floods the market with money, stocks rise, and when the Fed stops, the market falls."
The Speculative Portfolio jumped 141.94% in what Kurtz called the "quarter of carnage."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...