Quote from RSQ:
1. 80% return on millions
or
2. 15% on billions?
or
2. 300%+ on thousands-few millions (HFT)
Everything is relative.
If Medallion have significant AUM, at that rate it will be eating the entire other side of the trade. It would end up trading itself.
A. take a fund with 5 billion AUM. Take a small prop book with 50mil AUM. The book internally front-runs the Mother-fund. returns are 50-200% above the board.
Quote from poyayan:
You assume they take too much risk, but you don't know. The collective IQ in this fund is so high that I wouldn't assume anything.
Quote from piezoe:
Well I do know one thing and that is that risk and reward are related. Therefore knowing that, I would. You wouldn't. The bread and butter of these hedge funds are those who don't understand he relationship between risk and reward. They walk with your money no matter what.
Quote from piezoe:
Well I do know one thing and that is that risk and reward are related. Therefore knowing that, I would. You wouldn't. The bread and butter of these hedge funds are those who don't understand he relationship between risk and reward. They walk with your money no matter what.
Quote from mizhael:
What's "Ray Dalio's 'zen' approach to an investment firm"?
Somebody please shed some lights?