Allocators size their bets in vol terms. They'll allocate ¼ as much to a 30 vol trendie as to a 7.5 vol, so the AUM of a CTA is the wrong metric.
Hedge-fund prodigy takes a $300 million hit
- Thread starter RedDuke
- Start date
Allocators size their bets in vol terms. They'll allocate ¼ as much to a 30 vol trendie as to a 7.5 vol, so the AUM of a CTA is the wrong metric.
Are you saying that allocaters invest less money with high vol funds and more money with low vol funds?
Yes, but the "money" they "invest" isn't what matters to them. It's the amount of risk they assume. Futures are nearly no-money-down.
So you are admitting I'm right Surf. Wall street does not allocate large amount to high risk takers. Case closed.
http://www.ft.com/cms/s/0/b16d3ffe-390c-11de-8cfe-00144feabdc0.html#axzz3rDJJXgUrYou are not understanding. I know this is 6 years old, but the idea is the same. Im just stating fact, not making judgements.
these traders would you rather be? And do not assume Hare is out of a job. Losing a lot of money is often taken as a sign you are a "hitter" and can be rewarded with a large guarantee from another bank or hedge fund. If you are going to lose money on Wall Street, lose big.
these traders would you rather be? And do not assume Hare is out of a job. Losing a lot of money is often taken as a sign you are a "hitter" and can be rewarded with a large guarantee from another bank or hedge fund. If you are going to lose money on Wall Street, lose big.
I've tried twice to explain -- allocators think in risk, not $, terms. They'll typically allocate similar risk budgets, but proportionately fewer $, to the higher-vol managers.
This really isn't hard to understand. I'm starting to wonder if you've ever met with real-life allocators?
He is more concerned with trashing and discrediting marketsurfer than discovering the truth. #gonzohatevibe
I will reply to your other post from your alias on here as well. Why waste the real estate when it's you/your wife/your co worker. At the end of the day Surf, you have nobody fooled. It's you replying through them. Just post under Marketsurfer and not two other sock puppets. The timing of your posts and the other two is beyond coincidental. In the future put some time in between posts. Maybe some of the gullible will believe you.
We actually agree that investors allocate more funds to lower volatility managers. You stated the opposite, then completely back tracked. Normally I would say, no big deal, you were wrong. Hell I am wrong too like everyone else at times. But your MO on here is to just spew nonsense then back track. This happens more often with you then anyone else on here. That or you completely run for the hills. You do that a lot when people confront you with the facts. It's weak man.
Trashing you? Yes I do. But I am an equal opportunity trasher. At the end of the day I call em like I see em. After spending 20+ years on trading desks I have seen a lot of bs artists. I tend to trash them. The problem is you post so much nonsense on here. Also the fact that you have been in the trading world for so long it makes it much worse. One would expect this type of stuff from some young newbie in the business. Not from someone who's been around.
Anyways, hate is too strong a word. Don't hate you dude. But somehow you end up posting ridiculous stuff in the threads I am in from time to time. Like this one where you were absolutely wrong. And yes, I will call your nonsense out. Like I would anyone else. Just ask Q3d.
Discovering the truth ? Thanks man, you made me laugh. That is beyond priceless. If I want trading advice or to discover the "truth", I will talk with successful traders, like I always have. Don't think you fall into that category, let me get back to you on that.
Do blow out artists get 2nd chances from time to time? Yes. Look at Brian Hunter. He actually got a job as an advisor to a fund after imploding Amaranth. It can happen once in a while. But the question here was where does most of wall streets money go to. The answer, the exact opposite of what you said, is to lower volatility funds who do not employ cowboys and huge risk takers.