>It's like a hedge fund manager giving public advice on stock picks.
Why not? Stock picking is their job. Given that logic, a teacher shouldn't tell people how to teach their kid to read, and a plumber shouldn't tell people how to change a faucet.
Why not? Stock picking is their job. Given that logic, a teacher shouldn't tell people how to teach their kid to read, and a plumber shouldn't tell people how to change a faucet.
Yes, that's technically fraud/market manipulation. That@s why most hedge fund managers won@t give financial advice until after they've been paid, and are, at best, either selling the money management angle with all the right regulatory and compliance check marks ticked, or they're selling you fast access to market actors + quantitative fiscal analysis results.
Either way, I wouldn't advise necessarily blindly taking one's advice. Just because you "do it as your job" doesn't mean you're necessarily terribly good at it. Never mind the whole "completely punting on your own responsibility as a capital allocator" thing.
Remember, everybody punting to hedge funds and such is the reason the economy overtime has trended toward centralization. Once everybody knows the guy managing everyone else's money, it's only a matter of time til the information engineering starts.
The hedge fund manager has access to billions in managed capital. If he can advertise positions to the public, and the public takes his advice; he can manipulate his billions of dollars vs the known positions he gives out to hedge his own positions.
This is a 5 years olds description of how this works.