Volatility here, volatility there, no returns anywhere.
That seems to be the rallying cry from the media these days and how hedge funds are performing amongst all of the current and potential economic uncertainty.
Its seems from recent reports in the popular press that Mr. Buffett was correct when he said, “it is only when the tide goes out do you see who is swimming naked.”
Earlier this week, Reuters posted and article quoting a manager saying that there was too much political and economic uncertainty for them to do much of anything other than operate in a mode of capital preservation. Read the story here.
If the political and economic uncertainty wasn’t enough, the news last week about the fraud at Peregrine Financial Group Inc. helped push more people into cash. The reports by the Journal and Bloomberg picture paint a very bleak picture of the firm’s Chairman and Chief Executive Office Russell Wasendorf Sr. who like Mr. Madoff seems to have admitted to the fraud and taken full responsibly for stealing over $200 million. Here is an update on the story.
Maybe it is a good thing that the Olympics are starting in a week or so. Hopefully, the Games of the XXX Olympiad will offer a much needed distraction from the uncertainty. We are looking forward to watching the games and marveling in the athletic achievement that takes place.
In the meantime, we are staying out of the heat and working hard on researching and developing a number of programs for the fall and early part of 2013. As always, we welcome your comments and suggestions.