Titan launches its mobile ‘not a hedge fund’ • Hacker News Board

Re: Titan launches its mobile ‘not a hedge fund’

#51

Post by chkdsk » Wed, Aug 22, 2018, 5:51 AM UTC

Havoc wrote: post #49

chkdsk wrote: post #45

Earlier quoted context omitted.

If you ever find yourself questioning the validity of all the studies indicating how terrible retail investors are at investing...read r/wallstreetbets and realize you and your index funds are still in the minority.

>and realize you and your index funds are still in the minority. Quite the opposite. Index fund are busy eating the world alive. If you've got massive money flowing into the top 100 in the index thanks to ETFs the smart money is on companies 101 - 120. Similar risk profiles to the top 100 but their price earnings profile hasn't been distorted yet but the wave of incoming index wave. Passive is indeed the truth but do…

As of October last year Index Fund investors still represented less than 18% of the global stock market:

https://www.reuters.com/article/us-funds-blackrock-passive/l...

I'd hardly call that "eating the world alive." The only thing its eating so far is the absurd wealth management fees old school financial advisors used to make.

Also there's about 200 different indexes all slicing up the marketplace in various ways. Not every investor is buying the large cap, cap-weighted index (although most are).

Ultimately, this idea of passive "distorting" the markets just isn't true (also I'm not sure what you mean by "earnings profile"...earnings are set by consumer demand for a company's product, not investor demand for company stock). Active traders set prices, indexes simply follow the prices set by active traders. We are no where near the point where distortions would happen, and if we ever got to that point, there would be massive incentive to profit off of a easily predictable mispricing.

Re: Titan launches its mobile ‘not a hedge fund’

#52

Post by chkdsk » Wed, Aug 22, 2018, 6:02 AM UTC

aml183 wrote: post #30

nostromo wrote: post #12

Earlier quoted context omitted.

> Many people are bullish on index funds because research has shown that they outperformed managed funds over the past 10-20 years. According to John Bogle, this has been true for over 100 years. His analysis goes back to 1900.

You can't backtest a fund such as VTI. The issue is that these analysis don't take into factors such as volume. I'm sure if someone backtested $100MM investment in Bitcoin starting from 2010, the results would be spectacular, but we all know that buying pressure would've caused Bitcoin to skyrocket and the returns would be less than the backtested results. I personally tell people to invest in index funds if they don…

You absolutely can backtest VTI. We have reliable historical market data of the total US stock market (what VTI is) going back to the late-1800s.

Also, please tell me 1 of those better options?

The link you posted seems to take the opposite view from what you expressed. Batnick is very pro index funds.

Re: Titan launches its mobile ‘not a hedge fund’

#53

Post by Ntrails » Wed, Aug 22, 2018, 10:08 AM UTC

> while using an app to cut out the costs of pricey brokers and Wall Street offices.

Unless they have DMA themselves, alongside their own order/execution platform, I would suspect that a broker still exists who may well be in a wall street office? And god damn if you think 1% is "cheap" for this (not-very) smart beta strategy you need your head examined

Please don't stock pick based on what some app tells you some other people in finance have probably stock picked.

If you believe in active management. Pay an active manager. If you believe in passive investing, buy an index. If you believe in smart beta, pay a little bit more for a properly defined strategy which fits your world view. This is none of those things.

[Past Performance Is No Guarentee Of Future Success]

Re: Titan launches its mobile ‘not a hedge fund’

#54

Post by Hasz » Wed, Aug 22, 2018, 5:39 PM UTC

sseveran wrote: post #46

Hasz wrote: post #15

1% of capital every year is crazy money. If the fund is really that good, they'll take x% of the profits and not charge a fee on capital. You take capital because you're not really that good, and you don't know (like basically everyone else) what's going to happen. Funds know they can't reliably beat the market, and thus don't offer such structures. I want a ratcheting fee structure. No capital fees, and no fee if th…

I think you are misunderstanding what many (maybe most) funds actually say they are offering. The investment is often positioned as an asset class with low correlation to other asset classes. Whether they actually offer this or not is a different story but many funds are not out promising to beat the S&P 500 every year. Indeed if you look at something like REIF from RenTech they are trying to offer lower volatility t…

Absolutely.

Their advertising material points out their performance compared to the S&P500, and makes no mention of correlation. I don't think that this typical benefit of a hedge fund is what they're trying to sell. It seems to be a "beat the market with a shiny app" kind of pitch.

Considering they are going after very small investors, I don't think their target customer has much in the way of investments, better yet diversified ones, and probably knows even less about large scale asset management.

Re: Titan launches its mobile ‘not a hedge fund’

#55

Post by Hasz » Wed, Aug 22, 2018, 5:42 PM UTC

mmt wrote: post #47

Bedon292 wrote: post #17

Earlier quoted context omitted.

That would be awesome as an investor, but is that actually sustainable? I guess if the benchmark looses money, and they loose less they get to take a % of something? But they you are paying them for having lost money? Seems odd. I think I don't mind a minimum fixed %. Though as you say, 1% is pretty high still.

> I guess if the benchmark looses money, and they loose less they get to take a % of something? But they you are paying them for having lost money? Seems odd. I don't see a problem with it. This scenario, like negative interest rates, or negative electric rates [1], may be counterintuitive and seem odd, but it makes sense if you think about it. I'd be paying them for losing less money that I would have otherwise, and…

Hey, just so you know, the link to your resume in the bio is misspelled, leading to a deadlink.

Re: Titan launches its mobile ‘not a hedge fund’

#56

Post by mmt » Wed, Aug 22, 2018, 6:55 PM UTC

Hasz wrote: post #55

mmt wrote: post #47

Earlier quoted context omitted.

> I guess if the benchmark looses money, and they loose less they get to take a % of something? But they you are paying them for having lost money? Seems odd. I don't see a problem with it. This scenario, like negative interest rates, or negative electric rates [1], may be counterintuitive and seem odd, but it makes sense if you think about it. I'd be paying them for losing less money that I would have otherwise, and…

Hey, just so you know, the link to your resume in the bio is misspelled, leading to a deadlink.

Thanks! Obviously a typo, since the keys are adjacent on a qwerty keyboard, but why I would have ever typed it instead of copy-pasting is beyond me.