QuoteOriginally posted by: halikQuoteOriginally posted by: cplxphil Suppose someone like me were able to develop a mostly automated process capable of allowing me to consistently generate 30-40% returns annually. -PhilQuoteThere is always enough Alpha. The question is are you smart enough?! Lower Manhattan is filled with Ph.D. folk, making 7figures+, whose sole goal is to make sure that very scenario is impossible.And they accomplish that goal by taking that alpha. Alpha is there.

QuoteOriginally posted by: ymousQuoteOriginally posted by: halikQuoteOriginally posted by: cplxphil Suppose someone like me were able to develop a mostly automated process capable of allowing me to consistently generate 30-40% returns annually. -PhilQuoteThere is always enough Alpha. The question is are you smart enough?! Lower Manhattan is filled with Ph.D. folk, making 7figures+, whose sole goal is to make sure that very scenario is impossible.And they accomplish that goal by taking that alpha. Alpha is there.Exactly my point!What happens to the alpha once the phd quants get to it?

It can be done:Ex-Morgan Stanley Trader Feldschuh Starting Japan Hedge Fund Jan. 20 (Bloomberg) -- Michael Feldschuh, a former traderat Morgan Stanley’s hedge-fund firm FrontPoint Partners LLC,plans to start a fund focusing on Japanese stocks, according tomarketing documents. Aristarc Capital, based in New York, is scheduled to begintrading this quarter, Feldschuh, 41, said in a telephoneinterview yesterday.He declined to say how much capital he has raised. Feldschuh’s strategy at FrontPoint returned 14 percentin 2008 and 19 percent in 2007, according to the marketingmaterials. Feldschuh left Morgan Stanley a year ago after workingthere for three years and overseeing more than $100 million intwo hedge funds, according to the documents. He joined the NewYork-based firm in January 2006 from Millennium Partners LP, thehedge-fund group run by Israel Englander, where he worked from1997 to 2005. Feldschuh previously worked as a proprietary trader atMorgan Stanley for three years after starting his career at NewYork-based hedge-fund firm D.E. Shaw & Co. in 1992, according tothe documents.

QuoteOriginally posted by: acastaldoIt can be done:Ex-Morgan Stanley Trader Feldschuh Starting Japan Hedge Fund Jan. 20 (Bloomberg) -- Michael Feldschuh, a former traderat Morgan Stanley’s hedge-fund firm FrontPoint Partners LLC,plans to start a fund focusing on Japanese stocks, according tomarketing documents. Aristarc Capital, based in New York, is scheduled to begintrading this quarter, Feldschuh, 41, said in a telephoneinterview yesterday.He declined to say how much capital he has raised. Feldschuh’s strategy at FrontPoint returned 14 percentin 2008 and 19 percent in 2007, according to the marketingmaterials. Feldschuh left Morgan Stanley a year ago after workingthere for three years and overseeing more than $100 million intwo hedge funds, according to the documents. He joined the NewYork-based firm in January 2006 from Millennium Partners LP, thehedge-fund group run by Israel Englander, where he worked from1997 to 2005. Feldschuh previously worked as a proprietary trader atMorgan Stanley for three years after starting his career at NewYork-based hedge-fund firm D.E. Shaw & Co. in 1992, according tothe documents.I don't think anyone disputes that it can be done and is possible because hedge funds do exist; therefore it can not be impossible. However, success, given the information provided in the initial question, seems highly, extremly highly overwhelmingly inpentrably gigantuously improbable.Alk

QuoteOriginally posted by: goekhanHey, funny. I am also planning my own Hedge Fund One advice. Dont be too orthodox and academic about methodology. if you're so unorthodox, how are you going to convince Fat Cats to put money into your fund? Fat Cats only put money into strategies they are comfortable with, in people and organizations they know and trust.

QuoteOriginally posted by: halikLower Manhattan is filled with Ph.D. folk, making 7figures+, False. Lower Manhattan is full of MBA follks selling alpha to fat cats and making 7 figures doing it. The phds only make lower six figures if they're lucky.

Quote And they accomplish that goal by taking that alpha. Alpha is there. Are you sure ? How confident can you be that it is alpha and not luck ?

I shit on fat cats. If I do the numbers he has to make the decision. I am not begging for money. Besides, a fat cat is not going to understand a shit out of my strategy

QuoteOriginally posted by: goekhanI shit on fat cats. If I do the numbers he has to make the decision. I am not begging for money. Besides, a fat cat is not going to understand a shit out of my strategythat is definitely the right attitude that will help you raise money. investors like arrogance especially after they have lost 20-30% with "smart" managers in 2008.

QuoteOriginally posted by: daveangelQuote And they accomplish that goal by taking that alpha. Alpha is there. Are you sure ? How confident can you be that it is alpha and not luck ?alpha is a synonym for recurrent patterns (recurrence in the sense of statistical significance). those patterns ar not pure noise. Hence, it is not luckwhen you trade on them.

Quote those patterns ar not pure noise. until they are...

Its a tradeoff. Orthodoxy or Vision ? Do you just want to have a hedge-fond because you wanna be richt fat ass guy, making money in the first place?Or do you believe in your methodology, the secrets you have discovered and seen. Then a hedge-fonds is just a consequence of it.

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: halikLower Manhattan is filled with Ph.D. folk, making 7figures+, False. Lower Manhattan is full of MBA follks selling alpha to fat cats and making 7 figures doing it. The phds only make lower six figures if they're lucky. I sat across the floor from a quant that was pulling solid 7 figures...

QuoteOriginally posted by: goekhanQuoteOriginally posted by: daveangelQuote And they accomplish that goal by taking that alpha. Alpha is there. Are you sure ? How confident can you be that it is alpha and not luck ?alpha is a synonym for recurrent patterns (recurrence in the sense of statistical significance). those patterns ar not pure noise. Hence, it is not luckwhen you trade on them.You'll lose a lot of money if you're convinced that there's a 30-40% /yr of free lunch out there.

QuoteOriginally posted by: goekhanIts a tradeoff. Orthodoxy or Vision ? Do you just want to have a hedge-fond because you wanna be richt fat ass guy, making money in the first place?Or do you believe in your methodology, the secrets you have discovered and seen. Then a hedge-fonds is just a consequence of it.imho these patterns create such small profits that the only for it make sense is to leverage it and when you leverage a strategy that depends on picking up pennies in front of a bulldozer sooner or later you will lose a few fingers.