Thursday, 24 July 2014
Last updated 9 hours ago
Oct 24 2008 | 12:35pm ET
One former hedge fund manager is laying the blame on hedge funds for late-day market volatility.
Jim Cramer, host of CNBC’s “Mad Money”, told viewers yesterday that many hedge fund strategies have been dead wrong, such as the betting on a Chinese recovery after the Olympics, TheStreet.com, which Cramer co-founded, reports. Cramer used the Baltic Dry Shipping Index and the Shanghai Composite Index to illustrate how much China's economy has slowed since the big show under the Bird’s Nest ended in August.
The result of hedge funds gone bad is forced selling, he said, and at around 2:45 p.m. each day, hedge funds begin preparing for the next day's round of redemptions by liquidating their ill-conceived positions.
“These funds are getting killed,” he claimed.
The vociferous Cramer also blamed fund-to-fund managers for pressuring their underlying funds for immediate redemptions, forcing managers to think only for the short term.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…