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hedge funds investors on average are large, "qualified", and sophisticated. the money's leaving because they've underperformed (they always do in big bull runs

hedge funds investors on average are large, "qualified", and sophisticated. the money's leaving because they've underperformed (they always do in big bull runs), not because endowments etc have gotten "more educated about personal finance".

jmcgough 10y ago
You're right, I was thinking actively managed funds in general, not specifically hedge funds.
wsh91 10y ago
It's possible that their views on the EMH have changed, too, no?
beamatronic 10y ago
Some of the underperformance has been attributed to the crackdown in insider trading
- lintiness 10y ago
  unlikely. i think it has more to do with competitive pressures in markets and the elimination of a lot of the less sophisticated participants (partly due to higher frequency trading).
  - beagle3 10y ago
    Why would you say it is unlikely?
    - rvdavis 10y ago
      I think the commenter who stated that it is likely should cite their source. If you make an assertion like that, you should back it up.
      - beagle3 10y ago
        While that is true, the guy who said it was unlikely was guilty of the same crime. They both need a "citation needed" response. I personally remember enough cases like Steven A Cohen and Galleon and the Gerson-Lehrman group[0], that I assign the probability "likely" to that claim, so if someone says "unlikely" I ask him for his reasoning because I might need to update my estimates. I was not trying to say it is wrong, just understand his reasoning. [0] https://en.wikipedia.org/wiki/Gerson_Lehrman_Group#Controversies https://en.wikipedia.org/wiki/Gerson_Lehrman_Group#Controver...
- mason55 10y ago
  > the crackdown in insider trading Which, in reality, was the SEC and Preet Bharara trying to say that large investors aren't allowed to have meetings with the execs and investor relations people at the companies that they were large investors in, which doesn't make much sense and was knocked down by the courts.
  - PhantomGremlin 10y ago
    in reality There was a lot more to "reality" than you make it out to be. E.g. there's this clown https://en.wikipedia.org/wiki/Raj_Rajaratnam#Conviction_and_imprisonment_for_insider_trading https://en.wikipedia.org/wiki/Raj_Rajaratnam#Conviction_and_... and 13 of his buddies who were all convicted and who are doing time. And don't forget about Stevie Cohen https://en.wikipedia.org/wiki/Steven_A._Cohen#Controversy https://en.wikipedia.org/wiki/Steven_A._Cohen#Controversy who managed to skate personally but whose hedge fund pleaded guilty to criminal charges and agreed to a $1.8 billion settlement.

jmcgough 10y ago

You're right, I was thinking actively managed funds in general, not specifically hedge funds.

wsh91 10y ago

It's possible that their views on the EMH have changed, too, no?

beamatronic 10y ago

Some of the underperformance has been attributed to the crackdown in insider trading

lintiness 10y ago
unlikely. i think it has more to do with competitive pressures in markets and the elimination of a lot of the less sophisticated participants (partly due to higher frequency trading).
- beagle3 10y ago
  Why would you say it is unlikely?
  - rvdavis 10y ago
    I think the commenter who stated that it is likely should cite their source. If you make an assertion like that, you should back it up.
    - beagle3 10y ago
      While that is true, the guy who said it was unlikely was guilty of the same crime. They both need a "citation needed" response. I personally remember enough cases like Steven A Cohen and Galleon and the Gerson-Lehrman group[0], that I assign the probability "likely" to that claim, so if someone says "unlikely" I ask him for his reasoning because I might need to update my estimates. I was not trying to say it is wrong, just understand his reasoning. [0] https://en.wikipedia.org/wiki/Gerson_Lehrman_Group#Controversies https://en.wikipedia.org/wiki/Gerson_Lehrman_Group#Controver...
mason55 10y ago
> the crackdown in insider trading Which, in reality, was the SEC and Preet Bharara trying to say that large investors aren't allowed to have meetings with the execs and investor relations people at the companies that they were large investors in, which doesn't make much sense and was knocked down by the courts.
- PhantomGremlin 10y ago
  in reality There was a lot more to "reality" than you make it out to be. E.g. there's this clown https://en.wikipedia.org/wiki/Raj_Rajaratnam#Conviction_and_imprisonment_for_insider_trading https://en.wikipedia.org/wiki/Raj_Rajaratnam#Conviction_and_... and 13 of his buddies who were all convicted and who are doing time. And don't forget about Stevie Cohen https://en.wikipedia.org/wiki/Steven_A._Cohen#Controversy https://en.wikipedia.org/wiki/Steven_A._Cohen#Controversy who managed to skate personally but whose hedge fund pleaded guilty to criminal charges and agreed to a $1.8 billion settlement.