News for hackers. Stuff that matters.
Re:A Brief History of the Hedge Fund by hn_throwaway_99 on Tuesday March 23, 2021 @01:29AM (#26551438)
Pretty much everyone? Return is always measured as a function of risk (i.e. volatility). For example, it's trivially easy to get twice as much return if you're willing to take twice as much volatility - just use leverage to juice your returns (and your losses). However, to get twice as much return with the SAME level of volatility is exceeding difficult (you would essentially be a Warren Buffet at that point).

Similarly, to get the same about of return with much less volatility is just as difficult. It's why people were so willing to put money into Bernie Madoff's ponzi scheme, and why his years of steady returns with very little volatility turned out to be too good to be true.

There are no comments on this comment yet.