{"id":35840,"date":"2013-05-30T11:58:33","date_gmt":"2013-05-30T15:58:33","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=35840"},"modified":"2013-05-30T11:58:33","modified_gmt":"2013-05-30T15:58:33","slug":"risk-aversion-puts-hedge-funds-behind-sp-500","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2013\/risk-aversion-puts-hedge-funds-behind-sp-500.html","title":{"rendered":"Risk Aversion Puts Hedge Funds Behind S&#038;P 500"},"content":{"rendered":"<p>Bloomberg &#8211; Hedge funds are paying a price for being too hesitant to buy stocks in the midst of a four-year bull market, according to Barry Ritholtz, FusionIQ\u2019s chief executive officer.<\/p>\n<p>As the <a href=\"http:\/\/www.bloomberg.com\/news\/2013-05-30\/risk-aversion-puts-hedge-funds-behind-s-p-500-chart-of-the-day.html\">CHART OF THE DAY<\/a> shows, Hedge Fund Research Inc.\u2019s broadest fund index fell out of sync with the Standard &#038; Poor\u2019s 500 Index in 2011 and has yet to recover. The HFRX Global Hedge Fund Index had a 4.8 percent advance for the year through last week, while the S&#038;P 500 was 16 percent higher.<\/p>\n<p>Many fund managers have been \u201coverly timid and suffering from risk aversion\u201d because of the magnitude of the losses that preceded the current advance, Ritholtz said yesterday during an interview. The S&#038;P 500 tumbled 57 percent from its October 2007 high to its March 2009 low.<\/p>\n<p>Federal Reserve policy has worked against managers with a macro strategy, which focuses on political and economic events, he said. The central bank is conducting its third round of bond purchases, or quantitative easing, and has held its benchmark interest rate near zero since December 2008.<\/p>\n<p>\u201cThis has been an impossible macro environment to trade unless your macro theme has been Fed, Fed, Fed and you buy everything you can,\u201d said Ritholtz, based in New York. He serves as his firm\u2019s director of equity research.<\/p>\n<p><a href=\"http:\/\/www.bloomberg.com\/news\/2013-05-30\/risk-aversion-puts-hedge-funds-behind-s-p-500-chart-of-the-day.html\">Read Complete Story<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bloomberg &#8211; Hedge funds are paying a price for being too hesitant to buy stocks in the midst of a four-year bull market, according to Barry Ritholtz, FusionIQ\u2019s chief executive officer. As the CHART OF THE DAY shows, Hedge Fund [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-35840","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/35840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=35840"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/35840\/revisions"}],"predecessor-version":[{"id":35848,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/35840\/revisions\/35848"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=35840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=35840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=35840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}