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This is a general problem in finance. People get paid more and more with raising volume of their work. So they are happy to see it increase. OTOH they do not ta
by ulf 17y ago
This is a general problem in finance. People get paid more and more with raising volume of their work. So they are happy to see it increase. OTOH they do not take the real risk of their gamble. If they fail, they lose their job, at worst. So what?
- biohacker42 17y agoSo what? Nothing. But it is fascinating that there are so many investors not just willing but eager to give 2% just for showing up. Why is that? The only reason I can think of, is that there so much cash sloshing around that it creates excess demand and a shortage of supply. That's stunning when you consider just how much supply there is in terms of total number of funds, VC and hedge, etc. But if shortage of supply is indeed the case, then doesn't that suggest a great hack would be to provide more supply? Perhaps something like the index fund equivalent of a VC fund. No management fees and a computer throws money at the ceiling. The computer would use a very simple algorithm to cut of complete frauds and put money in everything else, something will stick to the ceiling. The question is, could a VC index fund work, and would it be more or less profitable then the average VC fund?