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Eye catching headline, but the set of hedgefunds is diverse with a large range of performance. I imagine the upper tails do pretty well
by drharby 9y ago
Eye catching headline, but the set of hedgefunds is diverse with a large range of performance. I imagine the upper tails do pretty well
- derenrich 9y agoby pure luck?
- Marazan 9y agoAnd how do you, ahead of time, select the upper tail.
- mikeash 9y agoI'm sure that's true, but it's also true of dice. Unless the same funds remain in the upper tails over long periods of time, it's pointless.
- icelancer 9y agoCan you guarantee me access to upper tail funds? I'm interested. I'd love to get my money into Medallion.
- drharby 9y agoThat was kind of my point. Funds like medallion exist and succeed pretty consistently, but they are the tail. Certainly others go above and below at various points in time
- compiler-guy 9y agoThe argument isn't that "No hedge fund will ever beat the market." The argument is that, "You can't tell in advance which hedge fund will beat the market." The long tail exists, just not for you.
- guard0g 9y agoIt's not about the tail, but that the mean (and median) is so much lower after HF fees and FoF fees (and the fact that there's just not that much talent out there).