> No one is making that type of return.
Classic passive ETF Boglehead mindset.
Who said anything about re-investing? There are also significant tax considerations (loopholes) that encourage cashing out annually.
2 karma · joined January 1, 2025
Classic passive ETF Boglehead mindset.
Who said anything about re-investing? There are also significant tax considerations (loopholes) that encourage cashing out annually.
Math class does not teach practical knowledge such as personal finance or health.
Citadel returns since 1990 is 38% annual returns before fees to outside investors. They have a 5:50 fee structure. There are hundreds of more firms, staying out of the public eye.
https://www.barrons.com/articles/multistrategy-hedge-funds-p...
Minimum investment $5M. Sorry but the middle class is not allowed.
False. Why do people invest in real estate and S&P500 passive index funds?
Because historically they go up.
Stop thinking like a hedge fund.
TQQQ commonly is used as a benchmark because it represents a low-friction, practical alternative to VTI, VOO, and even private equity investments including hedge funds trading public securities.
Once your Sharpe is high enough, you stop caring about volatility. The only volatility is how many zeros in your almost-always positive PnL.
Hedge funds (and traditional asset managers) care about drawdown, vol, sortino, beta and all that shit. But hedge funds have a different business model than prop trading firms.
High-frequency low latency trading: Sharpe 10 or higher
Mid-frequency low latency trading: sharpe 4 to 5
Hedge fund statistical arbitrage: sharpe 1 to 2
Hedge fund long/short, event driven, global macro, etc: sharpe 0 to 1
And yes, HFT and MFT scales to billions in annual PnL for single firms.
There’s a reason quant HFT firms pay the most, and are ranked above OpenAI in pay and prestige. Hedge funds are tier 2 in comparison but not bad either.