Extract From Year End Newsletter:
“Last year marked the 5th year in a row that equity market indices have significantly outperformed the hedge fund industry. For those who were brave enough in 2009 to go long the market and to allocate a good portion of their portfolios into long only funds (or simply into hedge funds that chose not to hedge) around that time, it has been a strong period for them. We now believe that the period when it paid off to participate in the market without proper hedges is running to an end, and savvy investors should start to allocate either to the hedge fund industry (the ones who do hedge) or to cash in order to be better prepared for what is ahead.”
Pedro Noronha, CEO and CIO Noster Capital.