Lmao at this “hedge fund replication” strategy that “outperforms the SPX from 2008-20”, based on following 13F filings for 40 hedge funds *that were selected because they outperformed the SPX from 2008-20* https://imarketsignals.com/2021/outperforming-the-sp-500-with-50-consensus-stock-holdings-of-40-large-hedge-funds/ …
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Broke: doing that Woke: applying it to 40 funds that underperformed the most as a mean reversion strategy
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But the back test performed flawlessly!
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Who back tests the back testers?
End of conversation
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"We are not Investment Advisers. We are Engineers who have designed mathematical algorithms for financial models..." I want to know which bridges they've designed so I can avoid at all costs...
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The strategy can be further refined: buy the stocks that went up and have negative earnings.
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can't wait to raise money to test out of sample. LPs, my DMs are open.
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a favorite memory of mine is explaining why it is disingenuous to market a backtest of the *current* "all-star" manager lineup in a FoF to a room of blank stares
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