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Is that a homework assignment? Tsk-tsk-tsk!

I don’t see how knowing which multiple manager fund is able to beat the market would help. No, the few manage the majority of money (which, of course, means they make the most on fees). In terms of performance, I’d bet that there is inverse correlation with AUM. You can do anything with a bit...

No, simply that top 100 funds out of 3 thousand manage about a trillion of the total of 3 trillion. It’s a winner take all industry

Managing a fund is mostly about retaining the AUM - some do it by making money, some spin it as “un-correlated bet” etc. Making good returns on a large asset base is pretty hard, especially with good risk metrics. Because of that, most managers resort to various spins, “we are the tail hedge”...

What % beat the S&P? Of all funds, probably 10-12% at most. Smaller funds do it more frequently, larger ones less so. How many actually make money every year? Plenty. Most multi-manager shops have no losing years and rarely have down months. What's the lifespan of an average hedge fund...

You have to take those warning signs seriously! They successfully predicted 22 out of the last 4 recessions.

I hear what you are saying but I think there is an important distinction. The Koch foundation is primarily a political organization and most of it's activity is aimed to effect political change (1). From my perspective, they are as much of a non-profit as the DNC or the GOP - personally, I think...

Sophisticated models and investment process does not mean complicated or illiquid products. Most of the HF industry are long/short PM. While investment process is pretty smart but the final result is simple. They buy stock in companies they perceive as under-priced or short stock in companies...

There is some value in knowing that something can be done, I guess.

Lulz :P

Actually, since all of them operate as non-profits, pretty much every bit information about what they do is available to the public. Oddly enough, that money makes a hell of a difference. For any marginal dollar, given a choice between 50c of it going to wage a war or sponsor police brutality...

Seriously? You are comparing a single proprietary strategy to a multi-strategy, multi-asset-class, multiple geography market maker? PS. What is this infatuation with high win rates here?

I think @globalarbtrader shares his numbers on his web site. Most institutional traders or PMs (e.g. myself, few other guys on this site) are prohibited from sharing their performance contractually. Fund managers should be happy to do so and usually brag about all over the place. Retail traders...

http://www.nbc.com/saturday-night-live/video/velvet-jones-school-of-technology/n8852?snl=1

Hmm. With all the noise, this one is an interesting question, actually. Is it better to provide factual/intellectual input or is it better to provide moral support?

I was going to say “it’s only going to cost 3-4 grand a month” but realized how ridiculous that sounds :) Happy turkey day!

For practical purposes, it’s an HFT strategy, except with more relaxed alpha requirements. It’s going to be latency sensitive (like most microstructure plays), so it has to be colocated, optimized for specific markets etc.

As a voice of dissent, I have to say that I have never seen a good enough commercial spread engine. Either you end up with fill rates that are very low or you end up with mismatched leg executions. Most people I know ended up building their own.

I think it’s important to understand the evolution in risk preferences of a fund manager. At inception, most of the funds assets are his own and he has foreskin in the game. In fact, there are some allocators that specifically look for early stage funds where the most of the AUM is founders own...

Tail funds usually make one out of two premises - either that some form of tail risk premium is underpriced or that you can find relative risk premium combination that provides them with tail protection while paying little to no carry. My experience is that the former is usually a complete...