3 ms·

Surely there isn't a shortage of competition? Does everyone just want in on the big names?

tmpz22 2y ago
Old people who don't watch their assets, very rich people who don't watch their assets. Maybe we should build a protection mechanism for it - maybe call it the Consumer Finance Protection Bureau?
- deleted 2y ago
  [deleted]
- metadat 2y ago
  For reference, see: DOGE-Backed Halt at CFPB Comes Amid Musk's Plans for 'X' Digital Wallet - https://news.ycombinator.com/item?id=43003636 https://news.ycombinator.com/item?id=43003636 And The biggest microcode attack in our history is underway - https://news.ycombinator.com/item?id=43001730 https://news.ycombinator.com/item?id=43001730
- wslh 2y ago
  Automated protection tools could also help in monitoring hedge funds, similar to how apps like BillGuard[1] worked for personal finance. Many investors don’t actively track their holdings the way they do with credit cards. [1] https://en.wikipedia.org/wiki/BillGuard https://en.wikipedia.org/wiki/BillGuard
- fallingknife 2y ago
  Most investors who invest in these funds are institutions and the ones who are (extremely rich) individuals are very unlikely to not be paying attention.
- JumpCrisscross 2y ago
  CFPB is irrelevant for hedge fund LPs.
  - yieldcrv 2y ago
    and is irrelevant in general since its just been nuked from orbit
    - missedthecue 2y ago
      Does a nuke from orbit generate more destruction than a suborbital nuke?
      - science4sail 2y ago
        Probably similar given the same yield unless the bomber has some way to utilize the kinetic energy of the orbit. The difference though is that a nuking from orbit has less chance of retaliation since the aggressor is no longer on the same planet (unless the victim has ASAT weapons).
- readthenotes1 2y ago
  Yes and what would be its job? Making sure that rich people have lawyers who read contracts? That would probably suffice. I don't have much sympathy for people who have enough money to use hedge funds and complain about the terms of their completely voluntary transaction.
mhh__ 2y ago
The top hedge funds that can realistically promise [0] excellent returns are basically all capacity constrained AFAICT Either that or they've switched business model to mostly making money on the management fee. It's easier to grow the assets than the returns. [0] If you can get money into one of the top multi-managers, in peacetime you are basically looking at somewhere between a nice and very good return every year. Where peacetime could well include a big bear market in stocks e.g. Millennium made 35% in 2022 despite a big draw down in the SP500. This of course isn't magic, illiquidity, big spikes in (say) funding costs, or just foolishness can still kill them.
- roncesvalles 2y ago
  >It's easier to grow the assets than the returns. A certain famous Italian gentleman had the same realization.
JKCalhoun 2y ago
Yeah, I'm not sure who is being scammed. Myself, I have never heard of any of these — Citadel, etc.
JumpCrisscross 2y ago
> Does everyone just want in on the big names? Yes. Generating consistent returns is hard. Proving you can do it is harder. Investors may be rationally willing to cede most of the upside in exchange for less exposure to the downside. (Part of the problem is the political pressure on public fund managers to avoid losses.)
Terretta 2y ago
Investing edge comes from hard work. These are not single strategy hedge funds. The places mentioned are doing something different not inexpensively duplicated, that returns a different investment profile. Random Google: https://www.eatonvance.com/insights/articles/how-multi-manager-platforms-find-strength-in-numbers.html https://www.eatonvance.com/insights/articles/how-multi-manag...

Old people who don't watch their assets, very rich people who don't watch their assets. Maybe we should build a protection mechanism for it - maybe call it the Consumer Finance Protection Bureau?

deleted 2y ago
[deleted]
metadat 2y ago
For reference, see: DOGE-Backed Halt at CFPB Comes Amid Musk's Plans for 'X' Digital Wallet - https://news.ycombinator.com/item?id=43003636 https://news.ycombinator.com/item?id=43003636 And The biggest microcode attack in our history is underway - https://news.ycombinator.com/item?id=43001730 https://news.ycombinator.com/item?id=43001730
wslh 2y ago
Automated protection tools could also help in monitoring hedge funds, similar to how apps like BillGuard[1] worked for personal finance. Many investors don’t actively track their holdings the way they do with credit cards. [1] https://en.wikipedia.org/wiki/BillGuard https://en.wikipedia.org/wiki/BillGuard
fallingknife 2y ago
Most investors who invest in these funds are institutions and the ones who are (extremely rich) individuals are very unlikely to not be paying attention.
JumpCrisscross 2y ago
CFPB is irrelevant for hedge fund LPs.
- yieldcrv 2y ago
  and is irrelevant in general since its just been nuked from orbit
  - missedthecue 2y ago
    Does a nuke from orbit generate more destruction than a suborbital nuke?
    - science4sail 2y ago
      Probably similar given the same yield unless the bomber has some way to utilize the kinetic energy of the orbit. The difference though is that a nuking from orbit has less chance of retaliation since the aggressor is no longer on the same planet (unless the victim has ASAT weapons).
readthenotes1 2y ago
Yes and what would be its job? Making sure that rich people have lawyers who read contracts? That would probably suffice. I don't have much sympathy for people who have enough money to use hedge funds and complain about the terms of their completely voluntary transaction.

mhh__ 2y ago

The top hedge funds that can realistically promise [0] excellent returns are basically all capacity constrained AFAICT Either that or they've switched business model to mostly making money on the management fee. It's easier to grow the assets than the returns. [0] If you can get money into one of the top multi-managers, in peacetime you are basically looking at somewhere between a nice and very good return every year. Where peacetime could well include a big bear market in stocks e.g. Millennium made 35% in 2022 despite a big draw down in the SP500. This of course isn't magic, illiquidity, big spikes in (say) funding costs, or just foolishness can still kill them.

roncesvalles 2y ago
>It's easier to grow the assets than the returns. A certain famous Italian gentleman had the same realization.

JKCalhoun 2y ago

Yeah, I'm not sure who is being scammed. Myself, I have never heard of any of these — Citadel, etc.

JumpCrisscross 2y ago

> Does everyone just want in on the big names? Yes. Generating consistent returns is hard. Proving you can do it is harder. Investors may be rationally willing to cede most of the upside in exchange for less exposure to the downside. (Part of the problem is the political pressure on public fund managers to avoid losses.)

Terretta 2y ago

Investing edge comes from hard work. These are not single strategy hedge funds. The places mentioned are doing something different not inexpensively duplicated, that returns a different investment profile. Random Google: https://www.eatonvance.com/insights/articles/how-multi-manager-platforms-find-strength-in-numbers.html https://www.eatonvance.com/insights/articles/how-multi-manag...