Posted: Wed May 30, 2012 11:42 am
Hilarious and in most respects probably pretty accurate. Don't let's forget however that the article is written by an employee of Vanguard.
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I'm afraid you stand corrected. Trend following funds have made a killing in the month of May. On the contrary, mean reversion funds are confronted with losses. Regarding bleeding beta, I was under the notion that almost all strategies tend to have high beta when compared to an index of funds employing similar strategies. What should be of concern, however, is charging 2/20 and still having high beta with the market (read: long short equity and the like).Toosday wrote:I have to admit, Macro's post made my morning. Obviously drawdowns are not fun but to see this type of language (although I cannot really tell who it is coming from) is something that pops up every drawdown. Noone can really predict what will happen but I sure would rather be in my position than in JPM's, who are stuck in their il- liquid large trade that is moving against them.
An inaccurate generalization I fear. JWH and Tactical for instance had down months.Macro wrote: I'm afraid you stand corrected. Trend following funds have made a killing in the month of May.
And it's been a long time between drinks.AFJ Garner wrote:An inaccurate generalization I fear. JWH and Tactical for instance had down months.Macro wrote: I'm afraid you stand corrected. Trend following funds have made a killing in the month of May.