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I'm certain I will get flamed to high hell around here for saying this, but here goes: in my opinion, trading for yourself (in the sense usually used around this forum) does not make economic sense. The risk and reward isn't there(*). If you take it as a business (*) There are some...

And just to make a quick follow up point - from an institutional perspective (and I've read a lot of these trading books when I was in college starting out), they are mostly completely amateur hour compared to our best practice. Institutional strategy design does deep diving simulations...

The reason for the roles to be seperated is because an instiution typically has hundreds of accounts and products spread across various asset classes, with each product having different goals and guidelines. Also, do keep in mind that the vast majority of institutionally managed money aren't...

This is very right. Sell side is very different from the buy side. Sales traders are sort of a combination of market makers, dealers, and salesmmen; In a lot of cases, especially in OTC instruments, they get a bit of risk capital so they end up running a bit of prop trading by holding on to...

I'm with such a buy-side institution. The way it works is, (1) PMs make the final calls on trades and allocations; In general, PMs own the portfolio's performance. (2) Traders are responsible for executing the PMs' decisions by going out to the market and buy/sell accordingly. They also...

I'm confused - did anyone here actually post an article where taleb claimed these returns? Did I miss it at some point?

fingerprints and piss test is pretty much common in all major financial institutions.

"You have no clue who I am" is just about the lowest possible level of discourse, which speaks to why its used so often by "guests" on day time talk shows. Sagacity is one of our special guests. We see right through to his immature and naive nature; Go ahead, scream some more about how we...

That was in response to someone assertion that he's a shill who make his buck by going around talking a big game and get paid lots for it. I pointed out that he has had a history of being quite open to do so without fees and doesn't belong to the elk of professional seminar-sellers. Anyway...

Exactly. If we recast sag's original post in a slightly different light, we'll see exactly how ridiculous it is: Sag - "Hey guys - I've been self medicating for awhile with really good results. I want to set up a psychiatric business advising other people in their mental health. Where do I...

Or, just risk adverse; or, anticipates a return distribution with fatter tails. In any case, the presence of a smile doesn't imply irrationality. It's a model artifact. But your general explain was very good.

This is clearly a shill for coinvest. It seems like a scam with every sentence. This is being forwarded for the SEC, for the record, of course.

It was. I'm going to point out, that some years ago when I was an undergrad at a university in new york, I personally invited Taleb to speak at the school for an economics club. He did, without any compensation or obligation - even paid for drinks for the people who were interested to talk...

Of course he's bleeding theta. That's the whole point isn't it. Looks like the investors didn't do asset allocations right. Funds like Empirica - and there are several - aren't suppose to make a steady x% a year; they are supposed to make nothing, and then do great when every one else is in the...

Wonder how long before one of the "advisors" blow up and these guys get sued. Last time I checked, investing with a sub advisor on the merit of a just a weeks/months/years on performance alone without any other due diligence doesn't satisfy reasonable care and the prudent investor rule; I can...

This is pretty rotten isn't it? Hiding important calculation details behind "proprietary methodology". I can tell you from experience as a user of Bloomberg, compustat, CMA, and a bunch of other pricing/analytics services in fairly esoteric stuff - vendors have always been willing to disclose...

He's hyping his new fund? Really? Because I'm pretty the SEC would like to know about that. See, if some guy goes around CNBC and claim to be an awesome manager; than surely it'd be extremely suspicious that if his fund shuts down quietly and is never mentioned again. Again, as far as I...

Again, your points are very fair - if you were the done doing due dilligence on his new fund. If you were, I'd expect you drill down to the core of these questions. But you are not. Taleb has no obligation to provide the general public with any information. He's not raising public money and...

This is a very fair point. The circumstance of the fund's closing is obvious of a big due diligence item. Moreover, if the fund that taleb is running is the type that does nothing for a few years and then give great return when ever things else go down the drain (there have been several...

He closed his fund. Funding vehicles are opened and closed for a variety of reasons. There has been no evidence that he did so because of poor performance.