The first and most important rule of gun-running is: Never get shot with your own merchandise.
- Yuri Orlov (Movie-The Lord of War)
" ... Hedge funds closely guard their strategies. For instance, the world's biggest hedge fund, $150 billion Bridgewater Associates, is said to keep its strategy close to only a few people. Bridgewater's external PR firm didn't respond to a request for comment on its strategy.
There's a good reason for the opacity. The funds don't want to give up their secret sauce, which can then be replicated by competitors. Yet it underlies a frustration that some investors in the funds have, in that they don't really know how their money is being invested.
As for BlackBox, the performance is eye-catching, and it caught the people we asked about it by surprise. "Some of the best minds on Wall Street trade in these markets, and no one has figured out how to make 1,200 [basis points] over LIBOR and never lose money,” says Andrew Beer, managing partner at Beachhead Capital Management, an investment adviser.