GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

The pitfalls of macro management: Sudden reversals in trends

October 31, 2006

NEW YORK Investors in hedge funds overseen by George Soros, Louis Bacon and Paul Jones would have made more money this year by buying shares of a stock-index mutual fund.



Managers of so-called macro hedge funds have lagged behind market benchmarks like the Standard & Poor's 500-stock index after being caught off guard by reversals in stock, bond and commodity prices. Macro funds, so named because they bet on broad economic trends, fare better when prices move up or down for a sustained period, which has not been the case in 2006, with investor opinions divided about the strength of the U.S. economy.



"When an economy is in transition, the markets are often choppy," said David Gerstenhaber, founder of Argonaut Management, a hedge fund manager in New York.



Read the complete article


Rating: 3.3/5 (6 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK