Friday, December 23, 2011
- Hedge Fund 2011 Returns
I'll probably make someone angry by using a metaphor like this, but looking at these numbers makes me feel like one of the guys that survived on D-Day. The dead and dying careers are everywhere I look. These number are horrible, and for more than one person I think the linked report on the Zerohedge page will be the the final item on their resume.
Many of my former co-workers are listed here and a few of my friends are listed by name. That's got to be tough. Their numbers are all catastrophic. And thanks to the recent rise of economic populism, that will bring cheers of 'good riddance' from places like Freerepublic and the bastions of the far left.
But that's wrong. Even on the right people don't understand the value that Wall Street adds anymore, and the way things are going they'll all live to regret that lack of knowledge. These days wishing for the demise of anyone who works on Wall Street is the only real non partisan issue.
Not accounting for personal lives (where I can't speak for anyone but myself) the only sin that all these guys are guilty of is succeeding. And for far too many people these days, that's sin enough. But these aren't too big to fail banks. They're small private companies - the very largest of them no more than a few hundred people. And more than one will certainly be failing now.
I'm posting a gain this year - about 5% give or take a breath if things go close to expectations next week, but with a big chunk cut out of the middle of the year while I changed jobs. Annualize my daily or monthly returns and it works out to more like a 12% year, which is closer to my historic average.
But numbers are numbers, and that makes this the second 'single digit' up year of my career (the first was 2008). I still have never had a down one. The prospects are also looking great for me for next year. I'm in as strong a position as I've ever been career wise, working with people I like in a position that I'm well suited to. It can all be in flames in a minute, but all things considered the future looks bright for me personally.
But it's hard to be too jubilant. At best it feels like all I've done is survive when far too many didn't. What's worse, I've survived in an environment where many people out there would rather I had died with the rest of them.
Man. It's really been very a tough year.