111–120 of 130 posts
It's nice to see that hedge funds are still around. I thought all the bros had switched to tech.
I've tried for the last several years to go the other direction: tech -> finance. I've sent thousands of applications to hundreds of trading and finance companies, and gotten zero bites in the last two years. I am currently just assuming that there aren't as many finance jobs as there are jobs at big tech.
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Hedge funds don’t magically take your money any more than Santa Claus takes your money. Pretty much none of your claims are true, unless those actors desire to be in a hedge fund (same as any place to invest). For example, social security is prevented by law from investing in anything except specially crafted Treasury bonds. Sovereign wealth funds are not “ordinary people’s money.” Union pensions are controlled by un…
I was wrong about the social security system, which I must have gotten confused with some kind of pension system, like CALPERs, which used to invest in hedge funds before pulling out in 2014, but still allocates 40% of its portfolio into private equity [1], which may be worse than hedge funds for reasons I have discussed elsewhere. Everything else I said was true. > Don’t want one, invest elsewhere. Ordinary people h…
Surely there isn't a shortage of competition? Does everyone just want in on the big names?
These are not single strategy hedge funds. The places mentioned are doing something different not inexpensively duplicated, that returns a different investment profile.
Random Google: https://www.eatonvance.com/insights/articles/how-multi-manag...
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and is irrelevant in general since its just been nuked from orbit
Does a nuke from orbit generate more destruction than a suborbital nuke?
The difference though is that a nuking from orbit has less chance of retaliation since the aggressor is no longer on the same planet (unless the victim has ASAT weapons).
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Perhaps. But HF capital is usually locked down for a few years. So there is some friction to switching
True, but I believe (although last explored this question a long time ago) that the majority of the capital is not locked.
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I've tried for the last several years to go the other direction: tech -> finance. I've sent thousands of applications to hundreds of trading and finance companies, and gotten zero bites in the last two years. I am currently just assuming that there aren't as many finance jobs as there are jobs at big tech.
We are in NYC area. More in profile.
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Doesn't mean said participants can't get together and complain about it to try and improve market liquidity
How is market liquidity relevant here?
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And yet UPRO (3X SPY) has significantly outperformed 3X the S&P 500 since inception (since June 2009 UPRO is +8000% vs SPY +700%. The reason is exactly what you described actually. If the underlying exhibits positive momentum, generally trending up instead of oscillating back and forth, the daily balancing works for you instead of against you and the ETF outperforms the target multiple of the underlying. Yes, if your…
+1, the criticism of “if s&p goes up and come back down, leveraged investments lose” is just insufficient as a criticism. It examines only one case. I’m probably 30% in SPUU for years now, and would like to hear real criticisms — do you have any real criticisms to share? I legitimately have found so little competent commentary on it, and I think I understand the risk I’m taking, but don’t want to miss an opportunity…
I'm no expert. But it seems like writing out of the money options: it's "free money" until the market suddenly moves against you, and you get your head chopped off. When that inevitably happens, the loss has a good chance of more than wiping out all your prior gains.
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> I have been trying to break into more of the software side, not the quant stuff > I have about half of a PhD in theoretical computer science There just aren't that many jobs in High Finance. They can concentrate on hiring EECS/ECE/CS majors from MIT, Harvard, Stanford, UC Berkeley, UIUC, Columbia, and Princeton and call it a day. But more critically, why would you even want to make that move? The RoI isn't that hig…
> The RoI isn't that high if you aren't quant. The postings I see on Selby Jennings (and their equivalents) seem to show a considerably higher salary than the BigCo's that I've worked at. At least the salary bands that are listed. That's honestly a big reason, but I also just find the world of ultra-low-latency software pretty interesting.
You can earn the bottom end of those salary bands in West Coast Big Tech with much less hours worked (30-50).
> ultra-low-latency software pretty interesting
Then go into ML Infra. It's the same skillset and problem space (high performance computing), but better work hours and decent compensation.
Shouldn't this problem self-regulate, though? Ultimately, investors mainly care about the returns and if you can get better returns elsewhere due to these fees, they will switch. If they can charge large amount of fees and still stay competitive, then good on them, right?
Not quite. It also matters how and when returns are generated. Some vol funds make 1–3% a year on average, but they still manage billions because when markets crash, they (presumably) crush it — and that’s when investors need them the most