A little holiday reading for you. . .
Link to the PDF is here.
I posted about the January Effect a few months ago. An investor could simply go long a microcap index ETF like PZI, and short a large cap index ETF like SPY. I’ll track it this month to see how it does.
From Infectous Greed:
Well, a new-ish study looks into this and comes to the unsurprising conclusion that while some of those secret, high-return funds undoubtedly exist, the main reason for hedge funds clamming up about their returns is that said returns newly suck. In other words, while 25% annualized super-quiet funds may exist, more often than not it’s a myth or a scam, as will surprise no-one who has read the fascinating story of GMM/LF Global here in San Diego. (More here. And why this fascinating story of a $120m hedge fund gone criminally kerflooey has never received much attention nationally, let alone locally, remains as baffling to me as ever.)
Kind of a fun speech if you have the time – Paul Krugman Authors@Google (thanks reader A.S):