Wall Street is underwater

Wall Street is sinking.

The big banks had a lousy first quarter. Hedge funds are getting pummeled. Regular institutional investors are flailing.

And they're all dragging each other down.

Goldman Sachs CFO Harvey Schwartz said on a recent conference call that nearly 80% of the largest active US equity mutual funds underperformed their benchmarks in the first quarter.

That hurts firms like Goldman, which have big equity businesses. In particular, slowing hedge fund activity weighed on the firm in the first quarter.

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