Don’t get me wrong, I respect the hell out of Warren as am investor. He’s just a massive hypocrite.
I read the thread. You pranced in and talked about how you’re more intelligent than everyone in here and anyone who has ever wrote a study or discussed everything. It’s your world we’re just fortunate to be a small part of it.
I pointed out that the authors of a certain paper were jokes. Then I was asked what qualifications I have, I provided them. Now I have an earful from people uninformed about what active management even is. Actually, I’m the first to admit I’m a nobody on the Street. But I sure as hell know more than academics or people that believe active management should be comped against passive long only indices.
Why should they not be compared to index funds? I’m my estimation people should care about the expected value of their investment. I understand you probably don’t lose as much value in a bad economy, but in general that doesn’t even out to the performance of an index in the long run.
If I’m wealthy enough to use a hedge fund, why should I be bothered with fluctuations (I’ll still be rich), if my return is statistically going to be higher in the long term?
Maybe you have data to counter this? I’m open to looking at it. I’m even willing to concede you are correct on buffet, and disclosures. I’m not convinced that hedge funds shouldn’t be compared long term to hedge funds, and that the comparison is never even talked about. I’ve probably read a half dozen articles comparing hedge to index.
Let me guess - you fetch coffee and fix broken spreadsheets for senior directors at your fund - God knows given your lack of self-awareness and obvious insecurity, you wouldn’t be in a client facing role.
That said, if educators - and thus academic education - were as worthless as you say they are, high finance wouldn’t require those academic credentials before hiring someone and would instead hire off the street. Wall Street obviously sees value in what academics do for students.
Yeah, I know and work with people in this industry. If someone comes in running their mouth about how amazing they are and how much smarter they are than this person or that person, they’re a wannabe clown that no one listens to.
I asked this before, but I’ll ask again and try to reword it. Let’s look at some equity index funds: SPX, R2K, etc.
These indices are long only, they are reweighted based upon market cap changes.
Now, let’s look at some various hedge fund strategies:
Long short equity
Market neutral equity
Options
Agency debt
Non agency debt
Distressed debt
Leveraged loans and HY bonds
FX
Macro long short
Etc.
Do you believe those should be compared to the S&P 500?
Without knowing shit about them. Pointed out they probably haven’t operated a hot dog cart which
Again, I pointed out how useless academics are, I was asked my credentials, provided them, then heard about how hedge funds are a rip off. I then defended why this isn’t the case. But you go tell yourself whatever makes you feel better about yourself.
I looked at their backgrounds.
Of course they should - their “strategies” are only worth anything to the extent they add value over and above taking no “strategic action”. Your strategy is only as good as your ability to outsmart the market itself. And you don’t deserve a fee if you don’t.
You work with people in the industry and believe that? Really?
So a merger arbitrage fund should be comped against the SPX? Distressed debt? Lol, this is hilarious.
We caught that. You said they probably hadn’t operated a hot dog cart. I’m going to guess you haven’t either.
Caught that one as well and it’s been consistently pointed out by you. Typically (now keep in mind this is from someone who hasn’t operated a hot dog cart) those who need to inform everyone how much they know don’t know much. I have no doubt you know a lot of jargon. You’ve pointed that out. You may very well be excellent at your job I have no idea. You just come off like such a fucking tool throughout this thread that I hope you’re works behind the scenes and not with actual “customers.”
Maybe you should start an investment thread in off topic? This one was about UBI originally and not just discussing how much more you know about the market than the rest of the world.
So why are you right on this and Wall Street - which clearly values academics - is wrong?
@plinnyc88 have not read all posts but, what do you think would a solution for all the displaced workers? How would they earn a living. With automation most low level jobs would be gone, only needing a fraction of the workers to program/maintain. How could workers pivot to a new career when most of the jobs they are qualified for are gone and they are not smart enough to work in other fields.
This is my concern, as society moves forward there is going to be a base level of intelligence needed to work and a large portion of the population will not have what it takes.
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I provided reasoning as to why UBI doesn’t work and make people better off and dispelled misconceptions about active management. You can think anything you’d like about me, but nothing I said was refuted.
The SPX yields an ROI of X. Only one question is relevant - does your exotic strategy yield better than X? Of course there’s a reason to comp against the baseline that gives me X with no effort.
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Lucas:
I’d think about it this way. The top of the productive process to create robots (to use an example) require raw materials. There’s a steel exterior, so people need to make steel, people need to weld, people need to drive to transport the raw materials and end product, etc.
It has to be frustrating to work in an industry where more and more people are figuring out that what those people do simply isn’t needed for the vast majority of investors.
And then to find out those people who aren’t using them are doing just as well or better sometimes? I think it may lead one to a posting frenzy on t-nation about how essential one is. That and it’s essentially considered one of the most slimy jobs on Earth so a lot of built up anger isn’t surprising.
What’s the risk adjusted ROI? How much tail risk is mitigated? Your statement is tantamount to me saying Mike Trout’s batting average should be comped against the NY Rangers’ goals per game. People invest in alternative strategies to protect against downside risk, that’s why if you see a large pension or endowment they have traditional equity, hedge funds, PE, RE, direct lending, IG corporate, etc.