The 20-Year Performance Of Hedge Funds And The S&P 500 Are Almost Identical
- Thread starter OnClose
- Start date
Maybe because Hedge Funds have become THE market?? Once anti institutional bastians of free markets, hedge funds have become institutional rather than outsiders.
There is still edge available in small, under the radar, niche funds--- but the majority of the long/short/trend mega funds are THE market.
surf
There is still edge available in small, under the radar, niche funds--- but the majority of the long/short/trend mega funds are THE market.
surf
⦠An interesting reminder that on average chasing alpha returns can be less interesting than simple buy-and-hold when a market rises month after month back to back... [A]
But when a market is sideways for several months, or falling over the year, on average chasing alpha ought to have its day again...
Perhaps if [A] market conditions are more common than market conditions, then buy-and-hold might be better over the long term on average? If the reverse, then alpha chasing ought to be better long term on average?
Isn't this just illustrating similar returns with less volatility? Isn't that what a hedge fund is all about?
Hedge Fund represent less than 2% of international market cap. How on earth could they possibly have become 'the market'?
1) Scenario-1: Regarding the identical performance over 20 years, hedge funds, for the most part, appear to simply replicate the S&P-500 but are paid much, much, much, more than mutual fund managers for the same "performance". It's almost a legitimized form of thievery. :eek:
2) Scenario-2: Brokers are beholden to hedge funds for the commission dollars & "market action" that they generate. Brokers will leverage the actions of the hedge funds to compel other institutional investors to coattail that trading activity in order to keep pace with the S&P-500 benchmark.
