AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains • Hacker News Board

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#311

Post by KMag » Mon, Feb 08, 2021, 1:57 AM UTC

Gunax wrote: post #293

JumpCrisscross wrote: post #133

Earlier quoted context omitted.

> There's a simple lesson. Buy and hold a low-fee index fund. Stop trying to pick stocks. And for God's sake stop trying to day trade stocks. It's a tough lesson to learn. When I realized, I think last Wednesday evening, that intelligent people honestly believed Ken Griffin was ordering Robinhood to block traders from buying GameStop stock so a short of his could make money, I started pricing out puts. (Didn't do any…

This is the first time i've heard of individual investors beating the market. If some can do so consistently, shouldn't they be running a hedge fund instead of twiddling with their retirement?

Many/most strategies become less profitable percentage-wise as you scale up the trading volumes. You end up pushing the market around and affecting the patterns upon which you rely.

If they've found some pattern that very reliably makes 40k to 50k a year on a 300k investment, with downside semivariance similar to the S&P 500, they're beating the market, but maybe the pattern will never make more than 80k a year, even with infinite bankroll.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#312

Post by KMag » Mon, Feb 08, 2021, 2:02 AM UTC

WJW wrote: post #161

JumpCrisscross wrote: post #37

Earlier quoted context omitted.

> That anger makes people lash out to try to change the status quo, which in this case caused Redditors to buy GME in spite of its ridiculously high valuation Is it anger motivating people to buy? I get mixing anger in with the greed and hysteria. Were I to play blackjack with the house being, I don't know, the Sackler family, I'd certainly get a high out of it and I'd certainly bet more. But I wouldn't be at the tab…

> Were I to play blackjack with the house being ... the Sackler family, I'd certainly get a high out of it and I'd certainly bet more. You playing at a gambling game with negative expected value against people you hate and you want to give them MORE money? I'm sure they'd love that. Any casino prefers irrational customers over the ones that can do math. (The ones that can do math are still welcome, just not as apprec…

> You playing at a gambling game with negative expected value

The GP used to be a professional options trader. I know several professional traders who are very good at counting cards. I wouldn't be so quick to assume they have negative expectation in blackjack.

Re: AMC, GameStop Give Hedge Fund Mudrick Capital $200M in Gains

#313

Post by op00to » Fri, Feb 12, 2021, 9:26 PM UTC

NicoJuicy wrote: post #303

op00to wrote: post #202

Earlier quoted context omitted.

Cue “but it was always Feb 9” ignoring that Jan 29 was “dday” before that. Then after Feb 9 it’ll be some later date in case there’s still tubes to fleece.

? 9 february is the date the short numbers are released for publication. Why would it be 29 january? It's not a final date either, it's a date that more is known and people can act on that info. You can always check the link I gave to see why... Since you obviously didn't.

How’d it go?