Steve Einhorn Correlates Fed Balance Sheet Size With Hedge Fund Returns And It's Not Pretty

In the 46-page Omega Advisors October 17 letter to investors is an issue that hits a raw nerve among many alternative asset managers. How is it that hedge fund managers, which in large part feast off an understanding of how the macro environment works and where mispricing was located, could find such an unprecedented string of underperformance? Steven Einhorn, a partner at the firm, looks in part to the central bank balance sheet as he correlates the two to consider the issue that dates back to 2009. [dalio] Central banks should not be criticized but they are involved in creating…