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http://fortune.com/2017/01/20/public-companies-ipo-financial-markets/ http://fortune.com/2017/01/20/public-companies-ipo-financial... Former hedge fund manager

by dollar 8y ago

http://fortune.com/2017/01/20/public-companies-ipo-financial-markets/ http://fortune.com/2017/01/20/public-companies-ipo-financial... Former hedge fund manager here. This never gets mentioned, but there are fewer publicly traded companies than there were in the late 1980s. There’s more money and fewer opportunities for a hedge fund to differentiate, so it’s harder to get outsized returns without excessive risk. Meanwhile, the finance industry has convinced people it’s “impossible” to beat the index in the long run.

whatok 8y ago
That doesn't explain non-equity strategies sucking too.
Analemma_ 8y ago
> Meanwhile, the finance industry has convinced people it’s “impossible” to beat the index in the long run. Did the finance industry do that? All I see when I look at the finance industry is people desperately trying to convince me that I can beat the index if I give them lots of money. I think what convinced people it’s impossible to beat the index in the long run is the continuous failure of active funds to do that.