The message for hedge fund investors seems to be that macro and arbitrage funds are doing fine. Equity is going through a rough patch, but if you believe in value and have a long-term horizon, it shouldn’t be a concern. Momentum looks good to an academic, but produces losses in the market, so investors have to take a hard look to figure it out.
Aaron Brown is a former managing director and head of financial market research at AQR Capital Management. He is the author of "The Poker Face of Wall Street." He may have a stake in the areas he writes about.