Dear Reader,
As the year comes to a close, this letter serves as a thank you to anyone that has contributed to this writing. The investors, speculators, friends, readers, haters, opportunists and anyone else.
I will keep this letter short and simple, as opposed to the usual detailed write-ups. I understand many will want to enjoy their time with friends, family or themselves.
Regardless of where you will be at 12:00AM tonight, here is one last metric for the year.
These are the hedge fund returns for 2021 from Bloomberg.
The S&P 500 returned 29% in 2021.
Only 3 Hedge Funds from that list beat the market. Many did not even beat the nominal inflation rate of 7%. Some lost over 40% (Melvin Capital wtf??).
I’m sure my very conservative friends with a 20% CAGR target will be thrilled with these returns.
If you had just indexed into the S&P 500 and held, you would have beat more than 90% of hedge funds, even though they have all the fancy technology, market data, quantitative analysts etc.
In comparison, Bitcoin returned 70% in 2021.
I’m leaving this here as I will write an in-depth market review in a few days time, as most people are not going to read through anything in the next 48 hours.
Once again, thank you to everyone who has supported the letter.
Wishing you a great Happy New Year.
Regards,
-Harman
Aside: If you’re connected with me on Twitter, your New Year started long ago.
Disclaimer: The views expressed by the author are not intended to serve as any form of financial advice. This letter is for entertainment purposes only. Please do your own due diligence and research.