“High volatility”, “systemic risk”, “inconsistent alpha”: Terms now associated with long-only investing
Oct 12th, 2008 | Filed under: Institutional Investing, Today's PostAccording to the latest research on fund flows, $43 billion fled long-only mutual funds from October 1 to October 7. The formerly high-flying industry is experiencing its worst month ever in October with returns topping out in the -10% range. Rather than putting their money into less volatile investments such as hedge funds or other alternative investments, they are mainly moving into cash, according to research firm TrimTabs. The firm also finds that a small segment of self-flagellating masochists can’t get enough market risk with roughly $4 billion flowing into US equity ETFs.
Meanwhile, Greenwich Alternative Investments, a hedge fund database and research firm reported on Thursday:
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