Bring It On Wall Street Spin Machine!

A reader writes:

For any strategy you can find dozens of funds with extraordinary track records, but nobody talks about the hundreds of funds that have disappeared due to poor performance or blow-ups.

For any strategy? Oh really. That is 100% bull.

Bottom line, your comment implies that all trend following firms and traders are created equal. There are reasons why, for example, some Turtles failed. And hey guess what? I drill into those issues with painstaking detail. So, sure people fail, but go do your homework and find out why. I know why people fail at the game and have been helping people for a long time to put the odds on their side.

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2 thoughts on “Bring It On Wall Street Spin Machine!

  1. The writer says: “… nobody talks about the hundreds of funds that have disappeared due to poor performance or blow-ups.”

    I find the subtlety of this continuing discussion interesting and significant. I am amazed how often people cite the above argument.

    Without understanding “the process” that produced either the “survivors” or the “blow-ups” such statements as the above do not mean anything other than pointing the direction for deeper investigation. Such statistical statements are a starting point for further examination, not an end in themselves. Understanding the process is very different from warming out conclusions from the data.

  2. I would love to know what big, well-known trendfollowing funds have ever blown up? There are dozens of well-documented and publicized blow-ups and catastrophic drawdowns in all sorts of strategies (global macro, value-investors, relative value). Where are the big ($500m+) trend following blow ups?

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