Equal the market with less risk? Sharpe Ratio for SPY
- Thread starter Andiroo
- Start date
If you can do it for your portfolio, surely you should be able to do it for a hypothetical SPY-only portfolio as well?
As an institutional investor, I am not only looking at your "benchmark Sharpe Ratio". Who cares about this in the first line. I am looking for real alpha. Can you deliver? There are 7000 other hedge funds competing with you. Do I look at Sharpe for a distinction? No.
Show me the juice in your strategy - or with other words:
SHOW ME THE MONEY (Show Me the Money! - Jerry Maguire):
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Disagree.
Risk matters, draw downs matter, sharpe matters and yes of course alpha matters.
A lot of money is going to be leaving an awful lot of those 7000 hedge funds when they see the massive underperformance.
If its not about risk management then how you gonna explain the 10% hedge fund returns (on average)!!
http://www.barclayhedge.com/research/indices/ghs/Hedge_Fund_Index.html
Risk matters, draw downs matter, sharpe matters and yes of course alpha matters.
A lot of money is going to be leaving an awful lot of those 7000 hedge funds when they see the massive underperformance.
If its not about risk management then how you gonna explain the 10% hedge fund returns (on average)!!
http://www.barclayhedge.com/research/indices/ghs/Hedge_Fund_Index.html
Sharpe is for people who were market neutral. Were you?
Luck, and survivor bias.