The only thing correct in that article is that the guy is a "first-year analyst".
It's as if he's only read a book or gone through some terribad training and has no idea the size, time horizons and liquidity preferences over which different market participants operate.
He equates short term trading with investments for pensions and makes ad-hoc incorrect claims about market efficiency.
He has no idea about the current market. "2/20" for anything but the very best hedge funds is long gone. It is not even close to being the industry standard.
He completely fails to grasp that hedge funds, unlike most other market participants, have no recourse to systemic help or support. If they make mistakes, if they underperform or if investors just feel like it (flight to quality) and remove liquidity, then can fail. Since 2007, thousands of hedge funds have failed and closed. They represent one of very few places in the financial industry where classical capitalism (ability to fail) is allowed and still works!
The post is basically FUD trying to overwhelm the uninformed or naive with jargon.
It's as if he's only read a book or gone through some terribad training and has no idea the size, time horizons and liquidity preferences over which different market participants operate.
He equates short term trading with investments for pensions and makes ad-hoc incorrect claims about market efficiency.
He has no idea about the current market. "2/20" for anything but the very best hedge funds is long gone. It is not even close to being the industry standard.
He completely fails to grasp that hedge funds, unlike most other market participants, have no recourse to systemic help or support. If they make mistakes, if they underperform or if investors just feel like it (flight to quality) and remove liquidity, then can fail. Since 2007, thousands of hedge funds have failed and closed. They represent one of very few places in the financial industry where classical capitalism (ability to fail) is allowed and still works!
The post is basically FUD trying to overwhelm the uninformed or naive with jargon.