Julis offered blunt advice.
One year ago
Hedge fund executives from some of the top firms in
the business spoke their minds at the 2011 Absolute Return Symposium.
"Hedge funds really haven't done what they were
supposed to do this year," said Emmanuel Roman, COO of Man
Group, the London-based investment manager with $64.5 billion
in assets, which was then on its way to a 6.83% annual loss in
its Man AHL Diversified managed futures fund (Man has done
better this year; performance data here).
Mitch Julius, co-chief executive of $19.1 billion
Canyon Partners, told investors to heed the
complexity of the world and be humble about their ability to
predict the unpredictable. "Masters of the universe? It's all
crap," he said.
Other prescient words came from Mark van der Zwan,
executive director and portfolio manager at Morgan Stanley
Alternative Investment Partners, who noted that investors were
sacrificing returns by steering clear of strategies they may
consider illiquid or complex. One such strategy, structured
credit, has been the best-performing in the entire hedge fund
world this year; the Absolute Return Mortgage Backed Securities Index
is up nearly 10%.
This year's Absolute Return Symposium, held just
three days after Hurricane Sandy hit New York, brought together
hundreds of industry leaders for keynote speeches by TPG-Axon
founder Dinakar Singh, Metacapital Management head Deepak Narula, and a
slew of panels featuring hedge fund luminaries. For complete
coverage from the two-day event (program here), please see the following: