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The 20- Year Performance Of Hedge Funds And The S&P 500 Are Almost Identical
Not sure if the title is suppose to be negative towards Hedge funds, but market like returns with 1/2 the volatility seems pretty good to me. Max drawdowns appear to be much less for the Hedge fund index than for the S&P500. All good.
I recently stepped into the Hedge Fund arena with the purchase of RGHVX.
Reply to @MikeM: Was thinking the same thing, but remember that comparison really wasn't against any particular hedge fund, but rather the "Credit Suisse Hedge Fund Index". Who knows what the makeup of that really is? Also I wonder if that index is available as an ETF? So far this year the ROR (Rate of Return) on that index is only 3.68%. The S&P is going to have to fall quite a bit to even that out!
Reply to @Old_Joe: Be careful with Hedge Fund indices. The losing hedge funds stop reporting their own and there is a huge survivalship bias. So, the index looks better than the state of actual industry.
Reply to @MikeM: RGHVX looks interesting, but is it the best option? Since inception, almost 15 years ago, it delivered less than OAKBX and FPACX with greater volatility.
Reply to @Investor: I didn't even click on the link. Just another gimmick like risk parity funds and other alternatives. I am glad someone ( I shoudn't be surprised it was you) had the knowledge to report on survivorship bias. That bias is even worse in commodity (futures) funds.
Edit: RGHVX, I must admit, not bad returns for a long/short equity fund
Reply to @andrei: FPACX has been my largest holding for quite a few years now. So I'd say that fund is a best option. But I like to hold 40% of my portfolio in balanced, allocation or alternative type funds with managers having good long term records and a lot of flexibility. Not sure all those descriptions, allocation/alternative/balanced, don't over-lap in many ways.
Within that 40% I like to hold 4-5 funds. My 3 main-stays in that group have been FPACX, MACSX and FAAFX. Two other funds in that group have been performing poorly, mainly because they are bond oriented - PAUIX and PGDPX. I've been moving out of those 2 funds because I don't see manager's flexibility to move out of bonds. I've been putting that money in RGHVX and adding to FPACX.
I actually wanted to add the Marketfield fund or one of the Whitebox funds, but they are not available to me. I liked what I read about RGHVX from David's commentary and the funds web site. So far so good.
Comments
I recently stepped into the Hedge Fund arena with the purchase of RGHVX.
RGHVX looks interesting, but is it the best option? Since inception, almost 15 years ago, it delivered less than OAKBX and FPACX with greater volatility.
Edit: RGHVX, I must admit, not bad returns for a long/short equity fund
Within that 40% I like to hold 4-5 funds. My 3 main-stays in that group have been FPACX, MACSX and FAAFX. Two other funds in that group have been performing poorly, mainly because they are bond oriented - PAUIX and PGDPX. I've been moving out of those 2 funds because I don't see manager's flexibility to move out of bonds. I've been putting that money in RGHVX and adding to FPACX.
I actually wanted to add the Marketfield fund or one of the Whitebox funds, but they are not available to me. I liked what I read about RGHVX from David's commentary and the funds web site. So far so good.