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You may be right, but I think we aren't there yet. We've got too many active trading firms delivering little value. As more money moves into index funds and ETF

by mabbo 9y ago

You may be right, but I think we aren't there yet. We've got too many active trading firms delivering little value. As more money moves into index funds and ETFs, only the best active traders will survive. As well, I've also been lead to believe that many hedge funds aren't simply trying to make the most money, but are trying to ensure a safety net. They are promising they won't lose more than X% no matter how crazy things get. There's value in that.

erikpukinskis 9y ago
> As more money moves into index funds and ETFs, only the best active traders will survive. That’s probably fine. I don’t see why active traders should get any money at all from outside sources other than venture capital here and there when they have a proven opportunity to scale that’s bigger than their market cap can fund. And those opportunities should be an easy sell to almost anyone with restless cash. Why should good traders be rewarded with sales? Good traders can make their own money. The only traders who need sales to survive are bad/exploitative ones.