Does the Sohn Conference Make Hedge-Fund Geniuses Stupid?

Basic statistics tells us that after a huge hedge-fund gain (or loss), there is likely to be some kind of regression to mean.

Yesterday, big-name investors, their fans and journalists (the latter two categories are not mutually exclusive) gathered at the Ira Sohn Conference in New York to hear some of the best ideas of the hedge-fund illuminati. Some speakers were old stalwarts with decades-long records of high returns, including former George Soros partner Stanley Druckenmiller, short-seller Jim Chanos and distressed debt maestro Paul Singer. But other managers were people who got seriously famous and seriously rich for only one reason: well-timed bets on the housing bust.

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