Funds Hub

Money managers under the microscope

from Reuters Money:

The year’s best and worst ETFs

Dealers work on the trading floor at IG Index in London May 10, 2010. REUTERS/Suzanne PlunkettThe best investments often don't have the highest returns. I know this is heresy to most, yet mass behavior can be a siren song.

About this time every year, we gaze intently at our portfolios, hoping against hope that we did something right. Sometimes we get lucky.

Two years ago, we didn't even want to open the envelope containing the bad tidings of the market meltdown. I kept my mutual fund statements sealed that year.

This year, there's some palpably good news to spread around, although it doesn't necessarily involve the best-performing investments.

Morning line-up


Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5sWill ETFs replace hedge funds?…. No – Seeking Alpha

Hintze the Prince’s philanthropist – Bloomberg

Hedgies to top stocks, bonds in 2010 – Reuters

Calpers probes hedge fund advisors – LA Times

Managed futures on the rack – Reuters

Bearish Bullman


Stocks may have enjoyed a huge rebound this year (the S&P 500 is up 50 pct from its March low), but the rally is based on speculation, according to one hedge fund firm.

rtr1s6hiBullman Investment Management, which runs a global macro fund, has just put on short positions on the S&P and the financials sector via ETFs, manager Nick Bullman told me.

from Global Investing:

Just another Snark hunt?

The Lewis Carroll poem The Hunting of the Snark (An Agony in 8 Fits), follows the misadventures of a group of seafarers, amongst them a banker and a broker, as they search for the elusive mythical beast. We are warned at the outset that catching Snarks is all well and good, but beware if your Snark is a Boojum, because - well, we'll come to that.

Alpha looks set to become as equally elusive in the next 20 to 30 years as investors switch to passive investing and exchange-traded funds (ETFs) in greater numbers, and the amount of information available to all market participants increases.