Have You Lost Money In The Stock Market?

Posted by onetwo , Jun 06, 2008 11:27AM

I'm tired of f-ing uninformed reporters calling hedge funds "risky". Yes, there is idiosyncratic risk--which is what everyone focuses on, the big blow ups--but, by definition, hedge funds are very safe. Take a look at the GS ART index, which, simply put, attempts to mirror the industry's trades using regression derived betas. The index has an SD of 6%, which is 1/3 the SPX and about 200bps above Lehman Agg. Hedge Funds are not risky--poorly run hedge funds are. But the same risk lies in individual stocks--especially small caps--but we dont deride stocks as "risky" because as a market they aren't very "risky". That, of course, doesn't mean individual companies aren't risky--that's the aforementioned idiosyncratic risk.

Posted by guest, Jun 06, 2008 11:32AM

Onetwo......you sound like a real estate agent.

Posted by guest, Jun 06, 2008 11:37AM

two words onetwo: tail risk

Posted by guest, Jun 06, 2008 11:42AM

@11:25 - I was wondering the same thing. My guess is either she is nursing a hangover from last night's 'coverage' of Taj. I imagine the result being a walk of shame originating in Hoboken. Way to take one for the team Bess!

Posted by HAM05, Jun 06, 2008 11:49AM

apparently, according to gawker coverage (slow day today) the event went down as advertised. mad peeps hooking up left and right. truthfully im pissed that i missed it, mustv been like shooting fish in a barrel.

Posted by Suits, Jun 06, 2008 12:37PM

While I generally agree with onetwo's sentiments, you've got to remember that for many of the unwashed masses, "stocks" are considered risky, and they're unsure even of corporate bonds. It's CDs and treasuries all they way.

Posted by guest, Jun 06, 2008 12:52PM

you dorks- she's gotta be riffing on those TV ads about excessive trading class action lawsuits.