Friday, 24 October 2014
Last updated 15 hours ago
Sep 16 2013 | 12:23pm ET
Despite an effort to cut risk, Bridgewater Associates' All Weather Fund extended its losses in August.
The $70 billion risk-parity hedge fund shed a further 1.4% last month and is down about 7% on the year, Reuters reports. The huge fund lost 8.4% in the second quarter, including a 6.22% drop in June.
Bridgewater rejiggered the fund's models in the second quarter after determining that the strategy was too vulnerable to interest-rate volatility. The changes were the first major alterations to the strategy since it launched in 1996.
All Weather aims to return 5% to 7% above cash per year, and returned 14.7% last year.
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 ...