One View
From a reader:
Mr. Covel: I certainly agree with your comments that everyone should be able to participate in hedge funds; after all why should the hedge fund managers, companies, the well-to-do be the only ones to have the opportunity to lose their royal ass. Democracy means equal access to losses. I was looking at the last two issues of Barrons at the listing of the hedge fund returns over the last year, five years, etc etc; abysmal! A few exceptions. I don’t understand why the funds that see their drawdowns terrifically high don’t just use some discretion and get out. I realize this would be counter to the systematic approach that these funds espouse, but it would seem like it might make sense to sacrifice principle for policy; even Hitler was smart enough to pull back from Leningrad after Germany had lost over 250,000 personnel.
