https://www.bloomberg.com/news/articles/2017-12-01/tudor-will-shutter-discretionary-macro-fund-in-restructuring
PTJ correctly sees the bubbles in bitcoin and fine art, but doesn't see the one in quant-based trading?
%% That surprised me also, he put bitcon i mean= bit coin + fine art in the same sentence.Maybe i figured the artwork on bit con should be like fine artwork US silver or US gold coins ??At least with a tulip mania, you had a good looking fine flower if you overpaid.LOL
I say this very respectfully, because PTJ is legit legend: I disagree entirely with the premise that there have been no great trading opportunities over the last 5 years in an attempt to justify a 1% return for discretionary macro funds. It's just that the strategic paradigms they use to trade the markets have been exposed for their worthlessness.* It's easy to buy bonds when you are in a raging Fed-driven easing mania, takes little skill to do that, for example. It's easy to sit around and pontificate like Hugh Hendry about what "should be" when it comes to central banks or China's property market. But the last 5 years have rewarded tactical trading. And tactical trading ain't got no time for that baloney. Paul may be right that there's a great bubble-like trend around the corner, but no trading opportunities in past 5 years? Come on. * Look at all the shipwrecked hedge funds started up by ex Goldman Sachs traders
I'd be happy if this proves to be a correct assessment: 'Jones, who has been frustrated with the macro trading environment, said things are "on the verge of a significant change" and that the current market is reminiscent of the bubble of 1999.'
A good rule of thumb: when a manager starts frequenting high-profile black-tie events in Manhattan, redeem.
https://www.wsj.com/articles/steven-a-cohen-andreessen-backed-diy-quant-fund-struggles-1510095947 Nov 7, 2017: "A quant-trading firm backed by hedge-fund investor Steven A. Cohen and venture-capital firm Andreessen Horowitz has run into early problems. Quantopian gained attention by creating a network of 160,000 users who developed more than 600,000 trading algorithms, grabbing the early lead in an emerging area of do-it-yourself quant trading. But in the four months since it began trading on June 1, Quantopian’s traders have lost about 3%, according to people close to the matter. The S&P 500 rose 6.6% in that period. Given that Quantopian has earned little revenue, it likely will need to raise more cash from investors, something executives hadn’t expected, the people say.About two months ago, Quantopian’s chief investment officer, industry veteran Jonathan Larkin, left the firm, the people say." jutaxpose with: "Billionaire Jones, a pioneer in the industry, has turned to more computer-driven trading and hired scientists and mathematicians to help revamp the firm. Tudor raised about $300 million for a new macro fund, which started trading in October, that uses machine-learning algorithms to help its manager make trades."
%% Speaking of market shocks, against all , or most all past data,LOL; DIA , YtD, is up 2%/+ than SPY. IBD 50 most likely has creamed DOW/DIA but havent check that lately. NOT a prediction I have bought gas @ XOM, CVX, LOL
I think the whole idea was on the silly side to begin with, but it was clearly doomed the moment Larkin joined the place.
This is a mystery to me. Goldman Sachs traders should be the elites. What are they not only under-performing but getting shipwrecked? A person of my calibre will never even get a chance to a job interview at Goldman Sachs. Yet, at least, I'm not shipwrecked. Why do elite traders (not referring to folks here) of Goldman perform so poorly?