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hedge funds and other large money managers...
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Probably 90% of "hedge funds" are designed to be "skimming operations"...
That is... the principals know from the outset ...
That they have no chance of outperforming the market...
Except by pure luck...
But they cannot lose financially...
Because of the fee structures and the operation of multiple funds.
Losers are shut down... and the winners keep just on "skimming".
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i'm shocked that you mistake liquidity for efficiency so readily.
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There is a very high degree of correlation...
Between liquidity and market efficiency.
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i was asked about this in some other thread. the question was, "i hear currency markets are the most liquid & thus most efficient and nobody can beat them, is that true?"
well, it most certainly is not.
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This has to be viewed differently.
Money is not "pulled from the ether".
When you make money in liquid markets...
You are TAKING IT AWAY from a Professional Traders.
As with all Zero Sum Games...
There will be about 5% winners and 95% losers.
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the UK IL bond market's real yields are artificially low (and thus BEI artificially high) because it is mandated by the govt that all pension fudns must match liabilities & assets to some degree or other (i forget the actual reegulations). that said, the UK IL bond market is one of the biggest available to trade (though has recently been overtaken).
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Focusing on one bad player in a game full of strong players...
Is some sort of common logical fallacy...
But I forget the specific term.
Barron,
As if beating efficient markets against strong opponents was not hard enough...
I'm not sure that you realize the DEGREE...
Of corruption and cheating and insider trading, etc...
In the US financial markets.
It's rampant... click on this:
http://www.google.com/search?hl=en&q...=Google+Search
I get cheated every day...
But it's just the cost of doing business.
Regards,
rm+