Re: maybe lets be less moderate....

From: Breathtakingly dishonest
Affiliation:
Address:
Date: 21 Aug 2007
Time: 11:53:25

Comments

Yup, I mostly agree with that. Note, though, that one does not have to completely accept the EM hypothesis to criticize hedge funds. The position sizes creating economic crises is bad. The misperception of high returns by the public is bad for the industry and reminds me of earlier scandals in money management. One PM I used to work for had the advice for me: "Sell the sizzle and not the meat". In other words, returns are nice but for that company we needed to emphasize marketing to get the money in the door to get our revenue from percent of funds under management. The efficient markets is another independent issue. I agree it is the best description of the market if you only had one paragraph to describe it. I do beleive in periodic and significant market inefficiencies (yes, they get arb'ed away) or I would not be working in this particular position right now.

Disclaimer