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And the hedge comes for me in the most unloved of equity sectors – Europe, or Old Europe, according to Donald Rumsfeld's infamous putdown.
The situation also makes it very hard to execute hedge fund strategies aimed at exploiting the differences between equity sectors — bets that utilities, for example, will outperform industrials.
The equity sectors that have been performing the best in 2012 are financials and information technology, each up more than 13 percent in the broader market at the start of trading on Tuesday.
In the tables showing the one-year past performance, there are more equity sectors (22) in the best category than in the worst (19); by contrast, there are more bond and cash sectors (9) in the worst list than in the best (6).
Most equity sectors retreated.
Moreover, the values for ratios of hedging long positions with short positions in the GCC sectors are smaller than those for the US equity sectors.
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Mr. Grofman, who joined Shulte, Roth & Zabel in 2001, is Paul Weiss's latest effort to bulk up its presence in the hedge fund and private equity sector.
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