I think we are talking past each other. The original post was the 80% of managed money loses to the index. Your point is that this is comparing apples to oranges because the Vol is very different in the hedge fund world. The article I posted is that the vol is hedgies is different because they produce less return than the S&P and their return can in effect be replicated with similar vol profile with a simple 60/40 portfolio. The key point I am stressing is that markets are very efficient, only a few managers are good enough to beat them and you chance of finding them is very small. So for most investors a very simple index based portfolio is (60/40 or 50/30/5/5) the best way to go.
80% of funds underperform the market?
- Thread starter gainpower777
- Start date
Scaleout.Scalper
Guest
The portfolio in the chart posted early in this thread looks just like a 60 /40 graph to me. To the poster of that chart: can you share with us how it is different, or post that stats comparison instead of s&p comparison? I think all would agree it is better than the s&p on a risk adjusted basis, but may I point out that it is probably about the same thing as a 100 percent allocation to HYG.
Cheers
Cheers
I'm done here at ET. The conversation, was about one thing, and to use data to prove a point, I always get drug into "How did you do that"
"Is it real"? (it is)
"Shuttup you have no broker statements" (I provide them)
"How did you do that?" (Pfft, I did the free thing for years with the 80% years - (and thus why I mentioned Sortino) - I'm done giving away specifics for free)
"You're BS'ing" (whatever, fine)
http://www.elitetrader.com/vb/showthread.php?p=3983687#post3983687
That thread explains it all.
Also why I'm shutting down the teaching site. Helping never turns into helping. It turns into me getting pissed off because other people can't see what I see in 5 seconds.
Have fun ...
"Is it real"? (it is)
"Shuttup you have no broker statements" (I provide them)
"How did you do that?" (Pfft, I did the free thing for years with the 80% years - (and thus why I mentioned Sortino) - I'm done giving away specifics for free)
"You're BS'ing" (whatever, fine)
http://www.elitetrader.com/vb/showthread.php?p=3983687#post3983687
That thread explains it all.
Also why I'm shutting down the teaching site. Helping never turns into helping. It turns into me getting pissed off because other people can't see what I see in 5 seconds.
Have fun ...
Scaleout.Scalper
Guest
It would be hard for them to justify their fees just telling you to buy SPY 
I guess nobody can agree with you? You're the only one who can be right. I can see what you're doing in the picture of the portfolio, and here it is. Now would you like to respond to my original question or just be a troll some more?