Buffett's Alpha (2018) [pdf]

Post by hummel » Sat, Nov 02, 2019, 7:59 PM UTC

codecritic wrote: post #10

hummel wrote: post #9

Earlier quoted context omitted.

If you have 1 billion on spare money, you can easily replicate their "black-boxes" strategies for fun. Some of my ML research work (I work for a hedge fund) points exactly on their trading behaviors and relations with different instruments during the past 25 years. Is not fraud or insider trading, is just everyone involved in the economic world benefits from this, that there is no real incentive to call it fraud. PS:…

Call me if you only have $500 mil ;)

Post by luc4sdreyer » Sun, Nov 03, 2019, 7:11 AM UTC

Nokinside wrote: post #3

deepnotderp wrote: post #2

From what I have seen, only certain quant funds like Renaissance Technologies and TGS Management have actually truly managed to beat the market in a consistent non-random manner. And they do exactly what you'd expect someone who has a money making machine to do- shut up and at some point kick out your external investors.

Quant trading strategy like Medallion Fund uses don't scale. That's why Warren Buffet has more personal wealth than Medallion Fund has AUM. Outside finance, but similar business is sports betting syndicates. They can make 30-70% yearly return with low volatility. If you bet in 100 events per week and the expected return from each bet is just 0.5% (after expenses) you make consistent 30% return with very low volatilit…