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A Fund vs. Your Own Money
- Thread starter Opulence
- Start date
Quote from Epic:
Documentary footage, interviews, etc... all give me the impression that he is a 'gut feel' type of guy. When he has a big win, he seems just as surprised as everyone else. Not even in the same league as Simons.
I agree that he is a "gut-feel' guy ..but that is discretionary global macro - synthesis of various market fundamentals and technicals to form an inner opinion.
Now are you arguing that synthesis process cannot represent "alpha"?
Quote from CPTrader:
I agree that he is a "gut-feel' guy ..but that is discretionary global macro - synthesis of various market fundamentals and technicals to form an inner opinion.
Now are you arguing that synthesis process cannot represent "alpha"?
Not at all. I'm arguing that 'gut feel' isn't a strategy and doesn't belong in the same discussion. There is no way to quantify or describe the edge other than to say that the trader 'just knows'. That is not a viable description of a strategy.
After watching that documentary on Tudor I was amazed that he hasn't blow up yet. I would NEVER allocate capital to someone who trades like he was. That's probably why he has tried so hard to get it off the market.
Tutor's Tensor Fund has a Sharpe of 0.33 (start date is 2005). Smaller Momentum Fund has a Sharpe of 0.00 (start date is 2009).
I think PDJ was always a beta guy. He just happened to nail a few big trades... much of the '80s-'90s was all about big trades. Look at John Henry, for another example. Great numbers from the '80s, and almost nothing since. His most recent performance is also horrible.
I think Simons is in a class by himself... no one else is even in the same ballpark. I am inclined to agree Bridgewater brings alpha to the table, but far less than Simons.
I think PDJ was always a beta guy. He just happened to nail a few big trades... much of the '80s-'90s was all about big trades. Look at John Henry, for another example. Great numbers from the '80s, and almost nothing since. His most recent performance is also horrible.
I think Simons is in a class by himself... no one else is even in the same ballpark. I am inclined to agree Bridgewater brings alpha to the table, but far less than Simons.
He's running a multi-strategy fund now, so the performance is not really about his own trading style, but more about his "taste" in managers.Quote from Epic:
After watching that documentary on Tudor I was amazed that he hasn't blow up yet. I would NEVER allocate capital to someone who trades like he was. That's probably why he has tried so hard to get it off the market.
Most of these big funds are multistrategy with the exception of Bridgewater. They are all a collection of smaller managers (with 50-500MM books) with some overall risk management umbrella.
A couple of the posters here would be familiar with circa billion dollar books run internally within most of the banks. I'm thinking stock loan baskets, equity basis trading, I suppose some of the option MM hedge books etc. I think they should get a mention, as all alpha, no beta, yet big.