Wednesday, March 12, 2008

More Hedge Fund Hemorrhage..

Drake Managment who runs the Global Opportunites sent a letter to its shareholder detailing the plans for the future of its fund. Its considering either winding down the fund, invest in a new fund, or wait for the market to turn around. The guys over at Drake Managment no armatures, they churned out 41% in returns in 2005. This is how bad things are right now and in my opinion..its only going to get worst. The more I think about the 200 billion dollar Ben is jamming into the market, I wonder what FED will do when these M.B.S. are valued so low they lose significant amounts of money on them.... will they run hit the "print money" button causing more pain on the dollar? I continue to be caution of the dollar .. those currency ETFs will be a place I will park extra money.

As I watch CNBC's Fast Money tonight, most of the traders (except for one) were bearish on the Financials. The night before, all of them were bullish... talk about being fickle. Then there was this other gentlemen that says most of the buying done yesterday was "real buying" as opposed to short covering... hog wash!! ... Until I see 33+ on the vix, we ain't see the bottom yet..

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