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JPMorgan Head Quant Explains Why Most Hedge Funds Have Been Slammed In 2016

JPMorgan Head Quant Explains Why Most Hedge Funds Have Been Slammed In 2016

As we showed one week ago, it has been a deplorable year not only for the broader market, but for some of the marquee "hedge" fund names, who once again have shown they "hedge" only in name. We followed up with a report on the world's largest hedge fund, Bridgewater, whose Pure Alpha strategy we further showed has gotten slammed in the first two weeks of February, losing a whopping 10% in half a month.

World's Largest Hedge Fund In Trouble? Bridgewater Pure Alpha Loses Over 10% In Two Weeks

World's Largest Hedge Fund In Trouble? Bridgewater Pure Alpha Loses Over 10% In Two Weeks

In the days after the August 24 ETFlash crash, the world's "risk parity" funds had a near-death experience when as a result of the furious disconnect between stocks, Treasurys and most other asset classes, the underlying correlation models failed, leading to dramatic declines for such giant funds as Bridgewater's $70 billion "All Weather" fund.

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