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#21
08-05-2005, 10:34 PM
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Re: Books on the stock market
Actually they had a ton of shares in their own hedge fund. Of course!, but I was talking about their stock allocations in their personal 401k's and IRA's etc. Sorry for the confusion. What it tells me is that smart "rocket scientist" traders would rather put their stock allocations to indexing. It is a bit ironic that traders who make a living going for leveraged outsized returns in their daily job would rather have their 401k's etc in index funds. Of course, it may very well be a time and convenience thing and knowing that the other choices weren't as good. I'm sure traders for stock hedge funds may take a more active role in picking stocks for their personal retirement accounts. eh whatever....
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#23
08-06-2005, 05:34 AM
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Re: Books on the stock market
[ QUOTE ]
Bottom line, if the managers of a fund don't believe that they can outperform the indexes by investing a substantial portion of their net worth in their own fund, then why should anyone else. [/ QUOTE ] Because they're gamblers - don't forget that most mutual funds have average gains less than that of a decent index fund like the Vanguard 500. So why do people still invest in mutual funds? Because nobody feels like they're "beating the market" by investing in an index fund, for crying out loud - how lame. [img]/images/graemlins/tongue.gif[/img]
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#24
08-06-2005, 01:37 PM
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do you people not read!!!!!!
How many times must I explain that the fund traders/managers had a huge personal stake in the fund.... oh never mind this part of thread closed.
Getting back to the book recommendations, I do find it interesting that of all the hundreds if not thousands of books out there, almost everyone came up with the same books that are all well over 10 years old!!!
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#25
08-06-2005, 04:19 PM
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Re: Books on the stock market
I'd like to put in a vote for One Up on Wallstreet. Great book -- assuming the market is a level playing field.
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#27
08-07-2005, 09:56 AM
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Re: Books on the stock market
[ QUOTE ]
How so??? Do explain I was talking bout their personal investments (401 k's, IRA,s etc) Not the fund itself. Learn to read..... [/ QUOTE ] I did read and understood the post, and the idea of a hedge manager indexing is ridiculous. 1) Every hedge fund manager I know has the majority of his personal wealth tied up in his fund. This is a large part of what makes hedge funds attractive is that the investors fate is tied directly to the manager's. 2) Good hedge fund managers beat the market. The generate alpha. If they're able to beat the market, why the hell would they index? 3) It is possible that what you're calling indexing is actually an active strategy using various index funds as timing vehicles, and/or shorting some indices while going long others, which isn't actually indexing but is instead making sector bets. 4) Also, index finds are often used as places to leave money on an interim basis so the funds are invested, while he looks for active ideas. I do this myself. By the way, people making that much money aren't eligible for IRAs, and can only a very very tiny fraction of that kind of money in a 401k. If that's what you're talking about then he might stick it in some crappy 401k index choice because he really doesn't even care about that pittance.
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