Now this is what is known as a sell signal:
We are actively working to adjust our process to minimize the negative impact
of future market dislocations and position the fund for positive returns going
Now there’s an idea! Why didn’t they think of that before?
And who came up with this piece of genius? It’s actually from the letter
sent out by Goldman Sachs hedge fund managers Mark Carhart and Ray Iwanowski
to investors in their Global Alpha fund. And that’s not the only laugh-out-loud
moment, either. A bit further down, they come out with this gem:
Our intent under these circumstances is to more aggressively limit the size
of our fund to reflect this new environment and to increase our agility in
times of market stress.
Hm. Aggressively limiting the size of a fund which is down 35% year-to-date.
Shouldn’t be too hard, I don’t think.