Hey those are the private equity funds, or buyout funds. Those are interesting businesses too. But for now let's focus on hedgefunds which do trading, and how do they scale up starting from technical analysis? I am just asking whether it's possible to run a large fund using technical analysis skills.
To know something about Paul Tudor Jones, Bruce Kovner and other big technical traders and their methods, you may read Market Wizards by Jack Schwager. Just go to Amazon.com and check it out. It's a very good book.
PTJ has already been discussed before in other threads - that TA belief about his trading is much less than people are led to believe.
PTJ catches tops and bottoms by trading Support & Resistance. He's probably smart enough to ignore stochastics, RSI & all these other indicators & oscillators fools dreamed up.
See link http://www.managedfutures.com/top_cta_rankings.aspx Sort by AUM, the top biggest manager has $23 billion. All their trades are based on technical analysis and not fundamentals.
The fund you manage and the strategies you use are two difference things. In fact, Buffet's approach is much less scalable than forex or futures.
Mizhael: You might be interested in this recently released book: The Heretics of Finance: Conversations with the Leading Practitioners of Technical Analysis (Jan 09): http://books.google.com/books?id=c6L0cJyPz40C I haven't read it yet, but look forward to doing so.
Eye-opening to a newbie like me. I've only heard about hedgefunds. How do these guys different than hedgefunds? How do you know they are based on technical analysis? Thanks!