Monkeys Match the Managers in Hedge Fund Funk — Dave’s Diary

Have you ever hear of the infinite monkey theorem? In simplest terms it’s an idea that states that a monkey, hitting keyboard keys at random  for an infinite amount of time,  will eventually and inevitably type any known given text such as the complete works of William Shakespeare. That’s a comment on random probability.  Maybe some hedge fund managers should start typing.

Hedge fund honchos who invest huge wads of money for rich people, haven’t performed all that well lately. In fact, a bunch of blindfolded monkeys would have made better investment decisions, according to a report at Marketwatch.com.

The average hedge fund has earned only 2.4 percent after fees this year. That’s much worse than the average stock in a global market index, which has risen 7.7 percent.

Moreover, it’s worse than the 6.2 percent that a bunch of blindfolded monkeys picking randomly would have earned according to Marketwatch.com!