3 ms·
Sure, but I'm not talking about complex strategies here. If you can't beat a retail investor with a straightforward portfolio of middle of the road stocks like
by ogre_codes 6y ago
Sure, but I'm not talking about complex strategies here. If you can't beat a retail investor with a straightforward portfolio of middle of the road stocks like "AMZN, AAPL, BRK, DIS", what is the point of a hedge at all? Particularly when their tactics put them in such a high risk category.
All of what I'm talking about would have scaled perfectly fine with a $10b portfolio, these are giant corporations with a combined market cap around $4 trillion.
- fractionalhare 6y agoI think you might be underestimating the complexity involved in doing anything with equities at $10B. I also wouldn't classify this as high risk. This risk is arguably novel. Short squeezes have happened before, sure, but not with the same sort of trigger. This is probably a new risk signal for the 30 or so funds which were blown out that haven't been as well publicized.
- nrmitchi 6y agoI think you're sort of mis-understanding one of the main purposes of a hedge fund (at least historically); they are often meant to obtain returns that are un-correlated with the overall market. Just dumping all of the funds into the market explicitly does not do that.