Our advice: Avoid investing in funds named for secure buildings or edifices that are expected to resist attacks from barbarian hordes, throngs of Mongolian horsemen that blot out the rolling hills, or otherwise protect the occupants (like your cash) from serious injury, sale into slavery, ritual execution or beheading, rape, or the depletion of capital. Remembering Patton ("fixed fortifications are a monument to the stupidity of man.") you might instead want to invest in smaller, nimbler, more agile structures that can simply slip across the border when Atilla the Hun invades. Consider the French Maginot Line, Fort Eben-Emael, that guarded the Gap of Vice, or, in what is just the latest, modern example:
Fortress Investment Group LLC's hedge-fund clients have asked to pull more than $4.5 billion, or a quarter of their money, over the next few months as the company reported its first quarterly loss since going public.
The redemption requests poured in as Fortress's Drawbridge Global Macro funds lost 13.5 percent this year through Sept. 30 and its Special Opportunities funds declined as much as 7.2 percent, the New York-based company said today in a statement. Hedge funds fell an average of 11.6 percent in the same period, according to the HFRX Global Hedge Fund Index.
With enough research, one might even discern a pattern.