3 ms·

I don't get why anyone would listen to the public musings of a hedge fund.

Retr0id 2y ago
The musings of hedge funds have non-trivial impacts on allocation of capital, especially in markets where prices are driven so heavily by speculation.
- fullshark 2y ago
  I doubt you can sort out the noise/misdirection effectively to predict price movements, but if you can you should probably stop talking to us about it.
  - Retr0id 2y ago
    I don't need to personally profit from market movements to find them interesting.
derefr 2y ago
This is an important point: what any professional investor (i.e. someone with a fiduciary duty to their company to attempt to make money through investing, rather than just gambling) says in public about their investments, is going to be far more about manipulating the market than observing the market. If they honestly expected their observations to exactly predict the future, publicizing them would just lose them all their alpha.
- everybodyknows 2y ago
  > about manipulating the market It's also about manipulating their clients' opinions -- say, in the direction of believing that staying with Elliott will, eventually, work out better than moving everything to ARK. > If they honestly expected their observations to exactly predict the future, publicizing them would just lose them all their alpha. Not if they're talking about positions in which they're already fully invested. In that case they are "talking their book".
mjburgess 2y ago
I don't get why anyone would listen to any corp board at all -- including everyone at OpenAI, etc. All the people talking out loud here have bridges to sell
melenaboija 2y ago
For the same reason that some people have been listening to them when the AI hype has been a gold mine. And NVIDIA is worth ~3T so I am sure there’s few people that have been listening to hedge funds and their opinion about AI and NVIDIA for the past couple of years.
HDThoreaun 2y ago
Short sellers care deeply about their reputation since they rely on outside money following their plays. If they consistently say "short this" and the stock goes up they run into big problems.
tim333 2y ago
It's a "recent letter to clients" rather than to the general public. They often say what their thesis is. Whether they know what they are on about is debatable.

The musings of hedge funds have non-trivial impacts on allocation of capital, especially in markets where prices are driven so heavily by speculation.

fullshark 2y ago
I doubt you can sort out the noise/misdirection effectively to predict price movements, but if you can you should probably stop talking to us about it.
- Retr0id 2y ago
  I don't need to personally profit from market movements to find them interesting.

derefr 2y ago

This is an important point: what any professional investor (i.e. someone with a fiduciary duty to their company to attempt to make money through investing, rather than just gambling) says in public about their investments, is going to be far more about manipulating the market than observing the market. If they honestly expected their observations to exactly predict the future, publicizing them would just lose them all their alpha.

everybodyknows 2y ago
> about manipulating the market It's also about manipulating their clients' opinions -- say, in the direction of believing that staying with Elliott will, eventually, work out better than moving everything to ARK. > If they honestly expected their observations to exactly predict the future, publicizing them would just lose them all their alpha. Not if they're talking about positions in which they're already fully invested. In that case they are "talking their book".

mjburgess 2y ago

I don't get why anyone would listen to any corp board at all -- including everyone at OpenAI, etc. All the people talking out loud here have bridges to sell

melenaboija 2y ago

For the same reason that some people have been listening to them when the AI hype has been a gold mine. And NVIDIA is worth ~3T so I am sure there’s few people that have been listening to hedge funds and their opinion about AI and NVIDIA for the past couple of years.

HDThoreaun 2y ago

Short sellers care deeply about their reputation since they rely on outside money following their plays. If they consistently say "short this" and the stock goes up they run into big problems.

tim333 2y ago

It's a "recent letter to clients" rather than to the general public. They often say what their thesis is. Whether they know what they are on about is debatable.