A hedge fund for you.

Obscure indicators can be fun and helpful. Here's one more...if you're reading this you likely know what a hedge fund is. This mutual fund operates like a public "fund of funds," one single investment buys 100 different managers with various long-only strategies (which rules out certain segments of the hedge fund word: merger arb, etc...though there are one/two funds that specialize in closed-end fund arb). This above chart shows the ratio between MOFQX:SPY. Now when MOFQX outperforms SPY, it means active managers/alpha is being bid-up....this is good. Likewise, MOFQX underperformance means active managers are finding it tough to beat the market (usually cuz the markets going down).

Now the key level to watch is 0.10, the 2005 high. If that level is broken, can good times be right behind?