The next great hecatomb: the hedge funds

Quote from harrytrader:

Their number has exploded but that's mathematical: the futures market is a zero sum game :p
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It will just attract volume to futures markets, which , I guess, is good for traders. Also, these money will try to find better traders, so environment might get more competetive. In the end public should lose, I agree.
 
I see the ubiquity of hedge funds startups as a function of a virtually zero barrier-to-entry, cyclicality of the investment cycle and increased sophistication of the retail investor. More isn't necessarily better, it adds liquidity, but functions to reduce volty. As the shops close due to underperformance it should lead to an increase in equity volty(linear-relationship).

I wouldn't be suprised if we see 300 or more shop closures by the first quarter of 2005.

riskarb
 
I above see that they need to unload their huge inventory and that the best is to open hedge funds to the public as these latters have been upset by mutual funds the crooks now need a new marketing vehicule for attracting the (less) naive public :D.

Quote from riskarb:

I see the ubiquity of hedge funds startups as a function of a virtually zero barrier-to-entry, cyclicality of the investment cycle and increased sophistication of the retail investor. More isn't necessarily better, it adds liquidity, but functions to reduce volty. As the shops close due to underperformance it should lead to an increase in equity volty(linear-relationship).

I wouldn't be suprised if we see 300 or more shop closures by the first quarter of 2005.

riskarb
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Hedge funds are dangerous to trading.

Market efficiency COULD accelerate at an awesome rate
and all traders MAY get hurt by it.

They are a real concern to me.
After all, I am a one man hedge fund.

peace

axeman
 
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