3 ms·
> half of the players will beat the market For how long? And if it is for more than one sample (year), then how do you explain the continued success of places
by vowelless 9y ago
> half of the players will beat the market
For how long? And if it is for more than one sample (year), then how do you explain the continued success of places like Renaissance Technologies?
> Both Vegas and Wall Street prosper from this same principle.
I think poker is probably the closest thing in Vegas that matches Wall Street. Probably why it is so popular among quants.
- moxious 9y agoThere's such a thing as real alpha and also just luck. In a market with so many players, you would also expect that random chance would predict many people winning consistently year after year. This is not to say that all such funds can be explained this way. But most of the successful ones likely yes