Too late, the hedge funds companies are bleeding bad...Maybe the feds should bailout the hedge funds companies...
http://money.cnn.com/2008/11/12/mark...s.ap/index.htm
About $60 billion of the losses during October were the result of investors pulling their funds out of investments as Wall Street got pounded.
NEW YORK (AP) -- Hedge fund assets fell by $100 billion in October as investors withdrew their money and funds were forced to sell stock, exacerbating the severe volatility that pounded global markets during the month.
About $60 billion of the $100 billion in asset losses during the month came from investor redemptions, according to a report Wednesday released by Eurekahedge, a data and research provider. Hedge funds' assets totaled $2.497 trillion at the end of the third quarter, according to HedgeFund.net, a hedge fund data provider.
Hedge fund selling has been widely cited as one of the reasons for the increase in volatility in equity and bond markets during October. The Dow Jones industrial average fell 14% during the month, while the Standard & Poor's 500 index declined 17%.
"It's pretty clear that hedge fund redemption has had an impact," said Donn Vickrey, co-founder and chief analyst at independent research firm Gradient Analytics.
Financing requirements also forced hedge funds to sell, said Ted Berenblum, head of alternative investments at BNY Mellon Wealth Management. As the credit crisis worsened, banks tightened lending requirements for nearly all customers from retail borrowers to large corporations. That forced hedge funds to deleverage their balance sheets, which meant more selling, he said.
Vickrey said reducing leverage likely forced some funds to sell positions they might have wanted to hold.
Despite the massive amount of selling in October, hedge funds overall still outperformed markets. Eurekahedge's broad Hedge Fund Index fell 3.3% in October. Its North American Hedge Fund Index declined 4%.
About 56% of hedge funds in Eurekahedge's database posted losses in October.
Moving forward, Berenblum said redemptions and sales are still likely to continue as hedge funds look to increase liquidity and investors pull money. But, Berenblum thinks most of the deleveraging by the funds is done.
"I'd like to think we're more than halfway, but there's still more to come," he said.
Stocks in 3-day selloff
http://money.cnn.com/2008/11/12/mark...s.ap/index.htm
About $60 billion of the losses during October were the result of investors pulling their funds out of investments as Wall Street got pounded.
NEW YORK (AP) -- Hedge fund assets fell by $100 billion in October as investors withdrew their money and funds were forced to sell stock, exacerbating the severe volatility that pounded global markets during the month.
About $60 billion of the $100 billion in asset losses during the month came from investor redemptions, according to a report Wednesday released by Eurekahedge, a data and research provider. Hedge funds' assets totaled $2.497 trillion at the end of the third quarter, according to HedgeFund.net, a hedge fund data provider.
Hedge fund selling has been widely cited as one of the reasons for the increase in volatility in equity and bond markets during October. The Dow Jones industrial average fell 14% during the month, while the Standard & Poor's 500 index declined 17%.
"It's pretty clear that hedge fund redemption has had an impact," said Donn Vickrey, co-founder and chief analyst at independent research firm Gradient Analytics.
Financing requirements also forced hedge funds to sell, said Ted Berenblum, head of alternative investments at BNY Mellon Wealth Management. As the credit crisis worsened, banks tightened lending requirements for nearly all customers from retail borrowers to large corporations. That forced hedge funds to deleverage their balance sheets, which meant more selling, he said.
Vickrey said reducing leverage likely forced some funds to sell positions they might have wanted to hold.
Despite the massive amount of selling in October, hedge funds overall still outperformed markets. Eurekahedge's broad Hedge Fund Index fell 3.3% in October. Its North American Hedge Fund Index declined 4%.
About 56% of hedge funds in Eurekahedge's database posted losses in October.
Moving forward, Berenblum said redemptions and sales are still likely to continue as hedge funds look to increase liquidity and investors pull money. But, Berenblum thinks most of the deleveraging by the funds is done.
"I'd like to think we're more than halfway, but there's still more to come," he said.
Stocks in 3-day selloff
There may be some big hendge funds being dumped this week, could be an indication of more down side volitility. I would be careful with longs..........
We have been in a up trend since open and all indicators say up..I'm so confused...LOL
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