The “buy and hold” strategy hasn’t worked in a long time (with, perhaps, the exception of Berkshire Hathaway but even their newer acquisitions seem to be lagging) and now the macro-hedge funds are being hammered. Hopeful sellers of high end Greenwich homes might want to reconsider their strategy of waiting for a fall market recovery to flush out those rich Wall Street buyers because, maybe, those people will stay hunkered down for a while.
Global financial markets continue to be whipsawed by policy makers and economic news, leaving even fund managers who focus on profiting from sweeping macroeconomic trends in a difficult spot….
Many so-called macro fund managers—investors who bet on big economic trends and policy decisions—had predicted a scenario where central banks become increasingly ineffective and developed economies remain weighed down by debt.
But even those who made the correct calls are finding it nearly impossible to time the frequent ups and downs of jittery, fast-moving markets where swings are often driven by pronouncements from politicians or central bankers….
One of the largest hedge-fund firms in the world, Bridgewater Associates LP, has posted lackluster returns this year. The Westport, Conn., firm, which manages $125 billion, deftly navigated the post-financial-crisis markets and returned 36.3% in its flagship macro fund last year. But this year the fund is up 2% through July 20, according to a person familiar with the fund.