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While I agree with your points, I think it is possible there are trading strategies that are defined by needing a certain amount of upfront capital (say $1 mill
by nowarninglabel 16y ago
While I agree with your points, I think it is possible there are trading strategies that are defined by needing a certain amount of upfront capital (say $1 million). So, you might know it is a winning strategy after a couple of renters use it successfully, but need to rent it out until you have enough money to use it yourself.
- yummyfajitas 16y agoThat's the premise of a hedge fund. A strategy generating 9% alpha, but which requires $1 million in fixed costs to manage (office space, salary, market data), might require $30-100 million in operating capital. It's hard to see how those economics would apply to collective2.com.