Your strategy is not scalable to billion+ as your holding time is just a few minutes typically. That's just noise, in no way you can apply large sums of money on that.
Asymmetrical trading ideas / Finding a fund or family office to work with.
- Thread starter Apux
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Your strategy is not scalable to billion+ as your holding time is just a few minutes typically. That's just noise, in no way you can apply large sums of money on that.
The problem is that these guys ca afford better lawyers. Also, once the source of edge is understood, it’s impossible to prove that they implemented exact same strategy.
There are people here more knowledgeable than me on this topic for sure, but my understanding is that there are generally three ways to get funded:
1. They know you because you worked for someone who has good reputation (Melvin Capital)
2. You produced research they are interested in and they are willing to allocate resources for you to prove that it actually works.
3. They generally understand your edge, but they would rather you run it because they don’t want to re-create it (operationally difficult for some reason or maybe they don’t want to deal with compliance, etc).
Sorry, but if I was managing money I wouldn't need to look any further than to see that you've traded GME.
Agree with all and I'd expand to say that no-one is looking for a person with THE golden egg that they've developed. They're far more interested in hiring geese who can lay golden eggs in a somewhat repeatable fashion. In which case the fact that they can steal your first investment thesis is more or less irrelevant because they're hiring you to keep coming up with new ones. Nobody is interested in a one hit wonder.
If I were managing money, I would be amazed how I caught the LoD multiple times on GME and would be rushing to invest.
Professional investors do tend to avoid managers that confuse luck and skill....
Agreed. It's why most professional investors fail to beat the S&P.
You appear to be assuming "beating the S&P" is the goal of most professional investors. Anyone who runs a bond fund is at least long term fails to beat the S&P. Does that reflect poorly in their skill as a professional investor optimizing the investment class in which their investors sought to invest? There are lots of LPs looking for correlations and limited max drawdowns and a variety of other targets that lead them to index off something other than the S&P, so comparing them to an arbitrary benchmark they are making no effort to beat is silly at best.