A summary of the largest Ponzi schemes in history, with a visualization that is a pleasure to the eyes.
The 2-and-20 are decried as enormous and one-sided fees. Investors are angry at the poor net performances. The press is pointing at large redemptions in a failing industry.
In other news, the weather is beautiful in hedge fund land.
Medallion is Renaissance’s flagship fund. It was up 75% in 2020. Unfortunately, it manages only the employees’ money.
All the other investors were down ~30% during the same period. Not as great.
Redemptions ensued. $11 bn of redemptions now.
PwC released its annual Crypto Hedge Fund report; it contains many interesting statistics – fees, size, investor source, strategies, liquidity, performance…
A good note from Ralph Sueppel on the relationship between market volatility and macroeconomic uncertainty.
Goodhart’s Law: When a measure becomes a target, it ceases to be a good measure.
The Sharpe ratio has changed investor behavior. We chase the metric rather than the underlying quality it is trying to assess, and there are plenty of situations where the Sharpe is a poor metric of quality.
And there are unfortunately major losses, which keep on demonstrating the point – LTCM, AIG, Malachite…