The Traderszone Network

Published in TZ Latest News 29 October, 2016 by The TZ Newswire Staff

JPM Warns Shift To Passive Investing Increases Systemic Risk, Will Make Crashes Worse

After nearly a decade of central planning by global monetary authorities, the hedge fund industry has found itself unable to generate any alpha since 2011. As Barclays recently calculated, the average monthly alpha has declined to -0.07% (annualized ~0.8%) from 2011 to May 2016 compared to an average of +0.48% (-5.9% annualized) for the entire period analysed (1993 to May 2016).

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