3 ms·

>> Many quant trading firms make 50%-100% annual returns, each year, over the past 15-20 years 100% annual returns on 1 million dollars for 20 years is 1 trill

>> Many quant trading firms make 50%-100% annual returns, each year, over the past 15-20 years 100% annual returns on 1 million dollars for 20 years is 1 trillion dollars. No one is making that type of return.

WalterBright 2y ago
Why it's worth paying attention in math class.
- chronic73940581 2y ago
  > Why it’s worth paying attention in math class. Math class does not teach practical knowledge such as personal finance or health. Citadel returns since 1990 is 38% annual returns before fees to outside investors. They have a 5:50 fee structure. There are hundreds of more firms, staying out of the public eye. https://www.barrons.com/articles/multistrategy-hedge-funds-podshops-annual-returns-634dd7a4 https://www.barrons.com/articles/multistrategy-hedge-funds-p... Minimum investment $5M. Sorry but the middle class is not allowed.
  - WalterBright 2y ago
    You don't need to know anything about finance or health to know how percentages and compounding work. Besides, I knew nothing about construction when I discovered that the contractor I hired to pour a patio was overcharging me by 30%. All it took was a bit of geometry I learned in grade school. Pay no attention to math in school and you'll be prey to every scammer who did, and you'll never realize it.
  - affyboi 2y ago
    > Math class does not teach practical knowledge such as personal finance or health. It teaches you how to work in a quant shop
dgacmu 2y ago
However, the medallion fund has averaged 66% for 30 years before fees. Analyzed naively, that would be $4T from $1M - but it's not, because in order to keep it working, they have to cap the size. Many strategies only work when you don't affect the market too much. So for the rare continually successful, market beating funds, it's probably better to think of them as generating something like a fixed dollar return per year. So they have a very effective money machine, but it's minting billions, not trillions.
chronic73940581 2y ago
> No one is making that type of return. Classic passive ETF Boglehead mindset. Who said anything about re-investing? There are also significant tax considerations (loopholes) that encourage cashing out annually.

WalterBright 2y ago

Why it's worth paying attention in math class.

chronic73940581 2y ago
> Why it’s worth paying attention in math class. Math class does not teach practical knowledge such as personal finance or health. Citadel returns since 1990 is 38% annual returns before fees to outside investors. They have a 5:50 fee structure. There are hundreds of more firms, staying out of the public eye. https://www.barrons.com/articles/multistrategy-hedge-funds-podshops-annual-returns-634dd7a4 https://www.barrons.com/articles/multistrategy-hedge-funds-p... Minimum investment $5M. Sorry but the middle class is not allowed.
- WalterBright 2y ago
  You don't need to know anything about finance or health to know how percentages and compounding work. Besides, I knew nothing about construction when I discovered that the contractor I hired to pour a patio was overcharging me by 30%. All it took was a bit of geometry I learned in grade school. Pay no attention to math in school and you'll be prey to every scammer who did, and you'll never realize it.
- affyboi 2y ago
  > Math class does not teach practical knowledge such as personal finance or health. It teaches you how to work in a quant shop

dgacmu 2y ago

However, the medallion fund has averaged 66% for 30 years before fees. Analyzed naively, that would be $4T from $1M - but it's not, because in order to keep it working, they have to cap the size. Many strategies only work when you don't affect the market too much. So for the rare continually successful, market beating funds, it's probably better to think of them as generating something like a fixed dollar return per year. So they have a very effective money machine, but it's minting billions, not trillions.

chronic73940581 2y ago

> No one is making that type of return. Classic passive ETF Boglehead mindset. Who said anything about re-investing? There are also significant tax considerations (loopholes) that encourage cashing out annually.