For fund managers, including those gathered at one of the industry's biggest conferences in New York, any optimism from last week's market rally was sapped by a fresh sucker punch on Tuesday as the S&P 500Speakers at a panel on the state of the industry at the SALT New York 2022 conference urged investors to stick with their bets, arguing the downturn could become a money making opportunity.
Other prominent fund managers, including some who got their start with the recently deceased Julian Robertson, credited with helping pioneer making money when stocks fall, are also in the red. Coatue Management lost 17% in the first eight months of the year while Maverick Capital is off 27% through August.
Goldman Sachs reported that hedge funds stocked up on tech stocks again last week, making it the most robust buying spree in the sector in seven months. At the SALT conference, poor returns were top of mind, as the focus of the conference also shifted from hedge funds to crypto investments. Many of the prominent investors who appeared over the years, including Steven A. Cohen, Daniel Loeb, and Ray Dalio were absent. Private concerts and pool-side parties that featured when the conference was held at the Bellagio in Las Vegas were replaced by buffet lunches with pasta, tacos and salad at the cavernous Jacob K.
Hedgefunds hedge, they don’t buy and hold 😂. If they know the stocks will drop they aren’t going to sit there and take losses. They’re going to hedge. They will make their money.