Every December, I visit the managers at Hindsight Capital LLC, an imaginary hedge fund that always invests with the best possible strategy for beating the market—in hindsight. These managers live in a world perpetually 12 months in the future; the only limit to their trading ability is that they must explain why their trades could have been foreseen 12 months in the past.
Usually this is a fun exercise that reveals surprising truths about the market, and Hindsight cleverly finds ways to double or triple its money. This year, however, was a tough one even for Hindsight. Almost nothing—not stocks, not bonds, not commodities, and certainly not crypto—made money.