Skip to main content

Markets: The short view

John Authers provides an interesting summary of first quarter stock market returns in today's FT print Short View column. It turns out that just about everything was down in US dollar terms, save one hedge fund strategy area:

"Anyone who made money in stocks during the first quarter has some tough questions to answer. The sell-off was so wide that you could only have done so by taking extravagant risks - unless you bet stocks would fall.

International equities fell almost equally once currency is taken into account; the S&P 500 fell 9.5 per cent and, in dollar terms, the MSCI EAFE index of non-US developed markets fell 8.8 per cent. MSCI's emerging markets index fell 11 per cent. "

There was, as previously noted, one bright spot for hedge fund investors mentioned further down in the column.

"But there was much money to be made by anyone making bold bets between asset classes, the terrain of macro hedge funds.

Early figures from Hedge Fund Research of Chicago show macro funds up 9.8 per cent for the quarter. All other strategies it covered, bar merger arbitrage, showed serious losses."

It's been a tough time for predominately long investors in recent months. Even the favored new bandwagon bet, long commodities/short the dollar, has taken a hit in recent weeks.

For more, see the Short View video clip of the "First quarter review".

Popular posts from this blog

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4.

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean

Slate profiles Victor Niederhoffer

Slate's recent profile of writer/speculator, Vic Niederhoffer has been getting some attention from traders and finance types in recent days. I thought we'd take a look at it here too, to offer up some possible educational value from Vic's experiences with trading and loss. Here's an excerpt from Slate's profile of Victor Niederhoffer : " I've enjoyed getting your e-mails. It sounds like you've thought a lot about being wrong. Well, the reason you contacted me, to call a spade a spade, is that I'm sort of infamous for having made a big, notorious, terrible error not once but twice in my market career. Let's talk about those errors. The first was your investment in the Thai baht, which pretty much wiped you out when the Thai stock market crashed in 1997. I made so many errors there it's pathetic. I made one of my favorite errors: "The mouse with one hole is quickly cornered." That is key. There are certain decisions you make in li