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With no reports of funds consistently beating the market in a surprising way. There’s no consistent way to make money. You can exploit small details about how
by rsrsrs86 3y ago
With no reports of funds consistently beating the market in a surprising way.
There’s no consistent way to make money. You can exploit small details about how each market works, but in a short time everyone will notice and copy you. It’s like a market without patents. People talk, the trade ideas spread. Like wildfire. Too fast even for a quant to make sense - good managers can tell if a piece of info is hot. No manager will ever be able to tell whether a stock will outperform.
- Galanwe 3y agoWow, you have to be the super expert that unveiled the whole hedge fund scam. Thanks for your enlightening opinion.
- wordpad25 3y agoIt's a common misconception about hedge funds that objective is to outperform market. The objective is to maximize profit per unit of risk taken. If hedge fund made 20% less than market but took 50% less risk, that's a MASSIVE value proposition. (now, one could argue they fail at that too, but that's more difficult to prove)
- deleted 3y ago[deleted]