This draw-down is different for 2 reasons in my opinion.
1- Market Neutral strategies are going to continue to suffer big time going forward the next few years as the market surges forward. The following is an exert from the most recent HML Market Outlook:
"The ASX is the same level it reached ten years, Europe is nearly twenty years on from their peaks and Japan - approximately forty years. Stocks have lagged significantly, but we think that will change dramatically and investors will be horribly placed - as usual. Even investors who have tackled stocks have favoured market neutral funds - and you do not want that sort of strategy in a bull market; you want to be long."
2- Reviewing their market commentary, shows their global Macro has been way off. They didn't factor in Brexit, nor did they think Trump had any chance of winning, unlike many other top tier hedge funds that got those calls spot on. AEG has been horribly placed for the most recent rally in commodities, etc.
