Yeah but I bet the cat can't charge 0.5% of assets under management. THAT's the art of investment management: gather up a shit load of funds and milk them at half a per cent per annum. The skills involved are marketing, lobbying and lying. Humans tend to be far better at these than cats.
That's a great point, but what it also shows is the cost of big institutions moving money in and out of the market... If most of them would just never show up at work their funds would perform better
Look guys.. the cat is a paper trader....sheeettt. we know how that goes... Wonder how the cat would do if his account was full of catnip?
But nobody is going to pay them to "buy and hold", I'd rather just buy the SPY if I wanted to buy and hold. Fact of the matter is the hedge fund industry is pretty much doomed, they cannot beat the market when central banks and govts dictate the rules of the game, they are at the mercy of these bureaucrats, just like everyone else is now.
"Orlando comes from a rural background, but moved to London at the age of eight weeks and has shown considerable interest in the trappings of wealth ever since. The two-year-old is a regular user of the Financial Times, and finds Jack Hershey quite entertaining, his posts perfect before an afternoon snooze. Despite his young age, he is quite an old paw at stock-picking. An early interest in joining Bright Trading waned after his milk teeth dropped out. Orlando is keen on Rentokil, sharing a common interest in pest control. In fact, Orlando has used his favourite toy mouse to help with stock selection. We created a randomly numbered grid, with each number allocated to a FTSE All Share stock. Orlando threw his mouse about and the 10 squares it fell on are his portfolio. He is quite blasé about his chances of winning, claiming that his portfolio is purrfect. Orlando could just pull the (Persian) rug from under his rivals."