111–120 of 167 posts
https://www.npr.org/sections/money/2016/03/04/469247400/epis...
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Eh. It works if you're a bear. You get in early, you sell in 2006 while shaking your head. Maybe you leave a bit in with extra exposure to volatility so you win either way, maybe not. Then when 2009 hits you pile in again. It's pretty easy to make way above average returns on the stock market. Just look for the classic signs that it is peaking (low unemployment, high P/E, high leverage, bad demographic trends, etc).
2 things about this. 1) if you are a fund you just cant' sit out 3 years. Your fund will shut down as everyone will yank their money,. if its your own money then people will leave as you won't pay bonuses. 2) If you went short in 2006 then you wouldn't have survived until teh crash of late 2008. > It's pretty easy to make way above average returns on the stock market. This is just an absurd statement along the lines…
The fact that funds do worse than indexed etfs says more about fund incentives and investor savviness than it does about the effectiveness of this strategy.
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Having worked with AQR, I would say they are more HF + coupled with some tend following than anything else. What makes you say they are not?
FWIW, Cliff Asness disagrees with you: > we are not high-frequency traders https://www.aqr.com/Insights/Perspectives/High-Frequency-Der...
Also, they seem to hire a fair few ex-HF guys in senior positions (e.g. https://nypost.com/2015/07/31/aqrs-head-of-trading-on-paid-l...)
Isn't all Warren Buffet & Charlie Munger do for a good portion of the day, like 6 hours is 'READ & THINK'. Then do nothing else.
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Did you keep up with that project or move on to something else? It's humorous to me that most people who end up selling data to hedge funds more or less "fall" into that industry by accident. Your story is exactly how it typically happens: you develop a new data-enabled product for one market, then a bunch of hedge funds find it and realize it's useful. Most companies pivot from their original market once they realiz…
We moved on - my friend was in business school at the time, and thought that continuing on with the project would be detrimental to his job search (he was looking at joining a hedge fund). Yeah, it was a very sudden shift. We always knew they were potential customers, we just didn't realize how quickly they would take to the product (as opposed to legal firms which you can imagine are significantly more bureaucratic…
Isn't all Warren Buffet & Charlie Munger do for a good portion of the day, like 6 hours is 'READ & THINK'. Then do nothing else.
In other news, students who study the most for SATs will post the best scores.
Turns out maybe the students aren't actually that good at knowing if they read the material sufficiently well, and you can get information about who will do better at the test just by looking at who looked at the class material the most.
The surprise is that the students are worse then we thought.
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AWS, Google, Microsoft, all have lots of customers. Why are those customers not strange but FB would be?
In my mind, if technology is a big part of your business then running on other people's computers only has one upside: might be cheaper. Everything else is downsides. Therefore, A) companies that operate at a scale where the only upside disappears, and B) companies where the cloud saving outweights their expected liability cost, both will have their own datacenters. Facebook is clearly in category A, RenTech is clear…
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As someone who has worked for one such secretive hedge fund in the past, and has for a long time been very interested in Renaissance, I'd be curious to know what your source of this information is. Any chance you could share some more insight?
Sure. 1. I'm friends with multiple people who used to work at Renaissance, and I've directly spoken with folks who are currently there (among other, similar firms). 2. I've read the research published by professors and post-docs before they were hired. 3. I have first hand experience developing forecasts for various market research firms and many hedge funds. I've seen first hand what the difference is between the fi…
Do you have any other keywords? “Learning from few examples” comes to mind...
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Renaissance Technologies has completely automated the process of signal discovery.[1] They don't hire researchers to manually derive novel insights or trading models from data, and they don't really bother with exclusive sources of data. Instead, they hire researchers to improve methods for automatically processing vast amounts of arbitrary data and extracting profitable trading signals from it. When most funds say t…
As someone who has worked for one such secretive hedge fund in the past, and has for a long time been very interested in Renaissance, I'd be curious to know what your source of this information is. Any chance you could share some more insight?