7 ms·
Makes me wonder why they don't just invest all the money under management in that fund. Edit: They are capped and take out profits...so I wonder if the cap is
by kriro 10y ago
Makes me wonder why they don't just invest all the money under management in that fund.
Edit: They are capped and take out profits...so I wonder if the cap is the magic or if they use better algorithms for their private fund (only natural since it's their own money). They would have the same inputs (their data sets, infrastructure, programming language etc.) so I wonder if they have two very different models (<=10 billion and >10 billion) or how those are linked.
- makeset 10y agoBecause liquidity is finite. Profitable investment opportunities don't scale indefinitely. When you discover that an asset is being offered for cheaper than what you think it's worth, pretty soon either you or others buy up all the cheap supply, and the price catches up with your valuation.