/biz/ - Business & Finance

>>53035511
>the most intelligent, most well-connected, and most Jewish actively managed funds underperform the market 90% of the time
wrong. they lose to the market average only when the time frame is long enough. i.e. if they manage a fund for just 5 years and beat the index during that time frame and then retire, they win.

index investing is a compromise for people that are not interested in learning the markets or for those that don't have the time to do so. in reality, you're much more free in making great value plays compared to the average fund manager since you're not bound by regulation whatsoever. Warren Buffet once famously said that he could guarantee 50% annual returns if all he had to manage were a mere million dollars.

if you bet on the average, you're gonna get average results. that's not bad. you just never stand to make any sort of outsized return. if that is alright with you and consistent with your financial goals, more power to you. but if you want to make better than average returns you need to make a few plays.

>>53035511
>Why aren't you just loading up on a few low-cost, broad market ETFs?
for 99% of the population this is absolutely the right decision.
>>53035637
>wrong. they lose to the market average only when the time frame is long enough
this is true, but the real redpill here is that the aforementioned "Jewish actively managed funds" don't always want to beat the market. thats probably going to blow a few minds here, but I spent the better part of 3 years as an equities analyst (RVFE) at one of the top 4 largest hedge funds in america, and every day the risk, compliance, and controls people would check in with us on our positions and how much risk we were taking. our EMS and OMS systems automatically blocked us from taking positions and automatically liquidated a considerable number of them if the risk book balance wasn't where it needed to be. the final redpill is that these massive hedge funds are taking on enormous amounts of money from soverign wealth funds, pension funds, and other stogy old institutions that don't want to see a return better than the market, they just want to see a consistent return. during my time at WorldQuant our goal was 10.6% annual return. That was the number we stuck to. The difference is that in 2008 when the market was absolutely fucking cratering MLP was still making about 10%, but on the flip side of that when the market was skyrocketing from 2016-2020 we were still making 10%. once you lads get into the upper echelons of finance and asset management you'll see that beating the market is pretty meaningless because, by definition a hedge fund is a hedge against market conditions. if we were consistently beating the market people would be losing their jobs and their books would be allocated with a lot less capital, because we weren't allowed to take that much risk.

>>53035511
The same thing they have been saying on wall street for decades, that the jews are the masters of finance but when the leman brothers were uncovered, they were the ones who lost the most money kek.

>>53037736
this is a great post. It's why Ray Dalio takes such retarded emerging markets positions, knowing full stop it'll underperform the S&P500

>>53035511
This is why I invest anti-semitically.

>>53038348
part of me wished more people with hedge fund/buyside backgrounds posted here, i honestly think the anonymity of this place would lead to some fascinating discourse. sadly /biz/ is nothing but garbage crypto shilling, wagie rage/desparation, and of course an increasing amount of spillover from /pol/. oh well, guess i should be the change i wish to see in the world huh