Sobering thoughts on hedge funds from Jason Karp (FM, EP.12)...
“A lot of the elements as an industry have become hyper-commoditized and hyper-competitive, most of the easy alpha is gone. At least in the duration that most people were used to.”
- Jason Karp (FM, EP.12)
- Jason Karp (FM, EP.12)
"Short-term investing is still pretty random. I've seen charlatans who have great results, and other guys who are some of the smartest I've ever encountered with some of the best processes who have lost money or not done well for the past four years."
- Jason Karp (FM, EP.12)
- Jason Karp (FM, EP.12)
“I think the hedge fund averages are doomed. I think even the 80th percentile is doomed. I think you have to be in the 99th percentile at this point, whereas 20 years ago you could have been in the 60th percentile and you were pretty good.”
- Jason Karp (FM, EP.12)
- Jason Karp (FM, EP.12)
"Managers need to be willing to have a frank conversation with investors and say I need a different structure, duration or call down when an opportunity shows up. An allocator has to be okay with me not doing anything for six months."
- Jason Karp (FM, EP.12)
- Jason Karp (FM, EP.12)
