Yes, because if you're hedging you're really not betting on a direction, right? Oh wait, what were those pompous assholes at LTCM betting on? Certainly not any ONE direction.
Correlated pairs and Mergers are a very time proven way to make money, especially when you collect interest on the short stock sales. LTCM, and other "hedge" funds were not and are no involved in "hedging" per se' - mostly directional...a "hedge fund" is rarely neutral to whatever market they are involved in. "Reversal to the mean" is something that most quant's look for. Don
Don, i understand that SSF's trade at Fair market value and make it hard to profit but i am not just legging in the arbitrage. When and if i am ready i will call the number but i am just not interested in moving to vegas. i would be happy to visit and dicuss what i am trying to do with you
We have so many hedges that we only concern ourselves with being within 20% of long $$ vs. short $$. Conversions of course are no haircut. Don
Good to know that i dont have to be in vegas, but might as well stop by teh office after leaving the bunny rannch
All traders are licensed, of course. If they're profitable traders, they don't "need" to come here....of course most do to see what the top traders are doing currently. The last few groups from other firms (showing that they are experienced) have started without any training from here, but they will likely come at some point...all part of the interaction that works so well. Don
could you tell me the details of the xiamen trader? is it possible for me to contact him directly. i just want to know 1 tax issue for foriegn prop traders 2 license for foreigners. online exam, or face to face to verify ID 3 visa issue for visiting vegas office another quesiton, what is the rational to be lisenced, if i don't use too much of the firm leverage? the reason i don't want to be a pro is that i will lose the lowered commission from IB etc, unless i trade from my client account.