The first quarter was “one of the most catastrophic periods of hedge fund performance that we can remember since the inception of this fund,” in December 1996, Mr Loeb said. “There is no doubt that we are in the first innings of a washout in hedge funds and certain strategies.”
The money quote:
Someday, financial people will realize that they can't actually print vast amounts of money, but a lot of innocent bystanders (e.g. CalPERS investors) are going to bleed until that day comes.