Perhaps you’ve heard something about this, but hedge fundsare kindof ina bad wayright now. And not just hedge funds run by Bill Ackman. Hedge funds run by people like Citadel and Millennium and Jabre Capital and Visium (which really doesn’t need this right now) and Brummer and we need to catch our breath for a while.
Some of the most well-known funds in the class have had a painful start to the year, hit by correlated falls across asset classes caused by worries over the Chinese economy and falling oil prices….
"Where the pain can be magnified is in large correlated moves, like January to the middle of February, and then again from mid-February to the end of March."