Don’t Talk To Hedge Funds About The First Quarter

Don't say it. Don't even think it.

After turning stock picking into an act in futility back in 2014, hedge funds managed to make people believe again with some briefly impressive performance. That, however, has proven far too difficult to maintain, and now hedge funds are dealing with a hell of a hangover from it.

"Global stock picking alpha across equity long/short managers was negative 4 percent in 1Q16, the worst quarter in at least seven years and the worst quarterly return by more than 2 percent," Morgan Stanley's John Schlegel wrote in a note to hedge fund clients Thursday.

Hedge funds post worst stock picking in 7 years [CNBC Pro]