With all of the turmoil and new game changers appearing when you least expect
it causing tremendous market volatility, some of the best known hedge funds have been heading for cash for the year’s final stretch. Some of
those stuffing the mattresses are SAC Capital’s Steve Cohen, Millenniumm
Partners’ Izzy Englander, and Paulson Capital’s John Paulson.
While that might be prudent, at least for the short run, that’s not why most
funds get paid the big bucks, especially with what’s paid on cash these
days. Those guys will probably be able to get away with it since even
through the turmoil, they’ve fared better than most. However, if smaller
funds try it, they might not be so successful. In the hedge fund world,
it’s a game of ‘use it or lose it’ if you’re not justifying those fees.
Read the rest of this entry »
Tags: Fees, Hedge funds, Izzy Englander, Paulson & Co, SAC Capital