Comment by Eddy_Viscosity2
8 hours ago
> a hedge fund can beat the market for 2-4 years but at 10 years and up their chances of beating the market go to very close
In that case the winning strategy would be to switch hedge funds every 3 years.
8 hours ago
> a hedge fund can beat the market for 2-4 years but at 10 years and up their chances of beating the market go to very close
In that case the winning strategy would be to switch hedge funds every 3 years.
The problem is that you don't know in advance which will be doing well when.
Except you don't know which fund is going to "go on a hot streak" or when the magic will end. The original statement only holds when looking at historical data; it's not predictive.