Re:The rise and fall of Cathie Wood, controversial Wall Stre...
by Galanwe on Monday May 30, 2022 @01:06AM
(#31555651)
> the hedge fund industry's goal is not necessarily to beat the market, it is to provide the highest level of return per unit of risk.
So basically you are saying a hedge fund is just optimizing for sharpe.
That is not true. Sharpe is just one way to compare performance at the same level of vol. It's a useful metric but very limited. It tell you nothing about exposure, risk and distribution.
I discussed how hedge funds position themselves here:
So basically you are saying a hedge fund is just optimizing for sharpe.
That is not true. Sharpe is just one way to compare performance at the same level of vol. It's a useful metric but very limited. It tell you nothing about exposure, risk and distribution.
I discussed how hedge funds position themselves here:
https://news.ycombinator.com/item?id=30826702