> Any significantly above market returns of any kind are either a scam or have risks that are either not understood or not disclosed. Before computers were wid

> Any significantly above market returns of any kind are either a scam or have risks that are either not understood or not disclosed. Before computers were widespread there used to be niches where outsized returns did exist, but just too small for large professional investors to bother. Like a once a month mis-pricing that you could make a few thousand on, max, due to low liquidity. Hilariously enough, that’s exactly how the most famous “value” investor Buffet started out: convertible bonds arbitrage. So much for “buy and hold undervalued but very good companies forever ” lol. He eventually grew out of that niche and became too big, so he had to develop a new image to sell to his LPs/investors and move on to bigger things. I have a hunch that the hedge funds proliferation in some part is due to the availability of speed and compute. Today you can leverage machines to exploit a million small niches, and lots of funds are doing just that. Tons of mini buffets around, they just can’t grow as big anymore, or at least with much lower frequency.