>Hedge Fund >Hedge >Hedge funds are not supposed to

at this point why even ask the question
why not just try to profit off of this inefficiency

>>1807689

Because if you aren't trying to figure out the "why" you're going to fail to see a correction coming when and if they underlying factors change when you try to profit off of the inefficiency.

>>1807689

The easiest way that I can envision to exploit this is the following:

>Find hedge funds that are, themselves, traded in some fashion
>Pick out the funds that fail to hedge sufficiently
>Wait until noise of bear market starts to circulate
>As their valuation goes up and bear looks imminent short them
>If bear-talk was premature the price dips back to normal when the panic is over and I win
>If bear-talk was accurate I win even more when the fund under-performs

The only ways I lose is if the market goes bear and the hedge fund is actually successful in it's hedging against the market, or if the period of uncertainty stretches out without clear signs that a recession is not looming.

>>1807682
Most retail investors can't invest in hedge funds. They have high net worth requirements and there are usually redemption restrictions for at least the first few years. Most hedge fund investors are large institutional groups and maybe a few rich families. Why do they invest in them? That's another story.

>>1807790

I'm curious as to what the story is.

>>1807790
Ive wondered myself, why do these people/agents invest in hedge funds when they usually dont beat the market?

>>1808500
>why do these people/agents invest in hedge funds when they usually dont beat the market?
Never mind, you.

salesmenship and reassurance

99% of private equity is just scared rich people wanting to feel safe in a world of parasites

>tfw your job is to golddigger protection

>>1808722

Seriously? I guess when you're a certain size parasites you can't see coming after your money becomes a major danger.

>golddigger protection

What did he mean by this.