(Harvest) If one examines the horrible performance at some of the largest and well known hedge funds,one would reach the conclusion that overly large position concentration and a lack of a risk management methodology would be the predominant causes of their subpar returns. One only needs to look at the disasters at hedge funds caused by Valeant Pharmaceuticals. However, instead of learning from those experiences, many large players are doubling down on the concentration philosophy! Many funds top ten positions represent the majority of the assets invested. In my opinion, taking highly concentrated positions without a risk management plan is just an accident waiting to happen.
Position Concentration Continues At Hedge Funds
This entry was posted in Syndicated. Bookmark the permalink.
