Saturday, 25 October 2014
Last updated 22 hours ago
May 30 2014 | 9:38am ET
A top Goldman Sachs strategist is anything but bullish on hedge funds this year.
David Kostin, the bank’s chief equity strategist, said there are too few opportunities out there for the industry to do well. Citing consumer-discretionary stocks, which make up about a quarter of equity hedge funds’ portfolio, Kostin said the dispersion of returns is too small to permit successful long/short trading.
“The opportunity set, the sand box, the swimming pool is very, very small,” he told Bloomberg Television. “It’s been a very difficult year from a stock-selection perspective.”
The troubles are forcing hedge funds to abandon what Kostin called “glamour stocks” in favor of a value-investing approach.
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…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.