Another year of hedge funds not earning their keep

Discussion in 'Wall St. News' started by dealmaker, Dec 15, 2019.

  1. I did check it out. You have a "method" that can't be backtested (but is 'easy'), with no evidence that it is profitable and you don't believe that money management is important.

    If it works for you, great, but it's of no use to anyone else and indeed such attitudes are positively dangerous.

    GAT
     
    #21     Dec 16, 2019
  2. dozu888

    dozu888

    Warren doesn’t backrest right? Backtestable stuff is only a temporary pattern that always self defeats.

    Mine has been forward tested because once you are on the same page with them pro boys there are very few surprises.

    No I can’t prove it. I thought about how to show my accounts without showing my accounts. But who gives a f. This is the internet.

    Seems some people have picked up this method. So it can be helpful to some. But no. For most people it’s no use. Most people don’t deserve to be rich anyway lol.
     
    #22     Dec 16, 2019
  3. lovethetrade

    lovethetrade Guest

    Different strokes for different folks.

    Warren Buffet would probably be average at portfolio management, Ray Dalio at making concentrated investment decisions and George Soros risking 2% per trade.

    The worst thing you can do is adopt another person's ideology that you don't believe in and doesn't leverage your skills.
     
    Last edited by a moderator: Dec 16, 2019
    #23     Dec 16, 2019
  4. ironchef

    ironchef

    N
    Not quite, buy and hold BRK is better. Or MSFT, or....
     
    #24     Dec 16, 2019
  5. ironchef

    ironchef

    In a way we (some of us) do appreciate your posts, they gave us retails hope. We don't need a statistic, physics, math or finance PhD to be successful traders.
     
    #25     Dec 16, 2019
  6. dozu888

    dozu888

    in hindsight BRK yes... but Warren has lost edge... has market performed for what, 20 years already? value investing dead.... but QQQ will always catch whatever new stuff coming along... so then you are talking QQQ vs. SPY more or less.

    now MSFT, actually MAGA msft aapl googl amzn... you could argue for the foreseeable future just buying the top few can actually enhance return without adding risk... it's a valid argument in this age of big scale... big data AI that small guys can't compete... and the entire economy for that matter... IWM dead for the same reason... nimbleness is no longer an advantage.
     
    #26     Dec 16, 2019
  7. dozu888

    dozu888

    thx...

    this is the best environment...

    - looking back in history this is the first time with NIRP ZIRP and due to 'forced diversification' and yield chasing from retirees pension funds etc now we have a 'value pocket' in equities with a huge yield advantage, which I have posted repeatedly.... this is where you want to be, the asset class that's hated.

    - technology is the only game in town.... no growth anywhere else, traditional industries all dead.. ... only computer/network speed and storage capacity is doubling every 18 months... no brainer here.

    therefore for the average retail even if you don't get fancy just buy n hold with eyes closed you capture 12.5% with consistent accumulation you get rich in no time... simple math.

    statistics etc all waste of time... if them HFs loaded with army of PhDs and programmers can't do it, why bother as a retail.

    the stuff I put out in 'trading is easy' is not that significant... perhaps add a few % points per year, but in the grand scheme of things it's really about investing in America and technologies and let the best and the brightest like bezos pichai cook etc make you rich.
     
    #27     Dec 16, 2019
    lovethetrade likes this.
  8. Out of curiosity I looked up my own performance vs QQQ since inception (July 2013): 247% vs 176.3% (both numbers from Fundseeder so may be different from numbers I report myself)

    I could go on about Sharpe Ratio, statistical signficance and alpha; but none of that 'book learning' matters apparently just historic performance :)

    GAT
     
    #28     Dec 17, 2019
    newwurldmn likes this.
  9. Sig

    Sig

    You're discussing modern portfolio theory with someone who doesn't grasp what a Sharpe Ratio is. It's like trying to explain general relatively to a 5 year old who thinks they know better than you
     
    #29     Dec 17, 2019
    GregorySG9 likes this.
  10. ironchef

    ironchef

    I don't quite understand modern portfolio theory and Sharpe Ratio but I do understand general relativity. :cool:
     
    #30     Dec 19, 2019