Ask HN: Hedge Funds or Algorithms? What are you more likely to invest in
If there were no barriers like accreditation or high minimums, which would feel more convincing to you: investing in hedge funds or algorithmic strategies?
lets say you see 2 exactly same products and the only difference is that one markets it as hedge fund and the other as algo. what'd you prefer?
How do you verify that?
they bet on the algorithm & not the developer as such! but they can see the dev's other algos and their AUM, returns, sharpe ratio etc to see how they're performing
Because the standard alphas that are submitted to other funds, they usually backtest it with years of data. And then let it paper trade for 3-6 months to make a decision on how much to bet upon.
would love to get your insights, since you've experience w hedge funds as well as algos