A word to the wise, from the management

Bloomberg’s Mark Gilbert speculates on the kind of letters that some hedge-fund investors might have received through their doors in recent weeks...

Dear investor,

We'd like to update you on the performance of our hedge fund, Short-Term Capital Mismanagement. As you know, market selection for the entire fund is guided by a proprietary investing tool we call "a dartboard". Once the asset classes are decided, individual security selections are generated by digitising our unique hexagonal cuboid models. Unfortunately, it transpires that our hexagonal cuboids are not as unique as we thought. Hundreds of other hedge funds possess identical dice. The technical term for this is a "crowded trade". You may also see it referred to as "climbing on a bandwagon already headed for the wall".

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