The Timing Of The Market Selloff Is Particularly Cruel For Hedge Funds

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		Home Tech/Media Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Thursday, November 15, 2012 The Timing Of The Market Selloff Is Particularly Cruel For Hedge Funds It's well known that 2012 has been a bad year for hedge fund managers. Forbes reported back in August that barring a "miracle", 2012 was going to be one of the worst years for the industry. Well, it's pretty much guaranteed that there will be no miracle occurring. The stock market has been clobbered since the election, and the timing couldn't be worse. This week, BofA/ML released the results from their latest hedge fund manager survey and found: Hedge fund net exposure to the equities is 40%, the highest Jun’07! Ominously, our backtesting since Jul’07 shows that whenever hedge fund exposure is >35%, S&P 500 tends to consolidate 4-5% and underperform UST 10yr by 700bps over the subsequent 4 weeks. Read » Also On Money Game Today: STOCKS FALL AGAIN: Here's What You Need To Know Warren Buffett Explains Why He Isn't Freaking Out About The Fiscal Cliff Advertisement CHART OF THE DAY: Why The US Economy Is In Way Better Shape Than The UK CHART OF THE DAY: Chinese Bank Loans, And It Looks Like The Government Is Still Worried About Inflation CHART OF THE DAY: One Big Risk People Have Forgotten Thanks To The Fiscal Cliff Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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