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George Soros Hearkens Back To A Time When Men Were Men, Women Were Women, And Hedge Funds Were A Good Idea

Speaking to Bloomberg Television at the World Economic Forum in Davos, Switzerland, George Soros cast doubt on hedge funds’ future ability to do better than the broader markets. “Since hedge funds are now a dominant force in the market, they can’t, as a group, outperform the market,” Soros said. The 82-year old added that managers’ and investors’ risk aversion will only make things worse. “Outperforming the market with low volatility on a consistent basis is an impossibility,” Soros said. “I outperformed the market for 30-odd years, but not with low volatility.” [FINalternatives, Bloomberg]

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22 Responses to “George Soros Hearkens Back To A Time When Men Were Men, Women Were Women, And Hedge Funds Were A Good Idea”

  1. Hobbes says:

    FT Alphaville Headline: "Famed alpha generator admits to getting lucky on beta."

  2. Sean says:

    "And I had to walk 15 miles uphill to work each day!"

    • St. Copious says:

      Actually I think his point is the exact opposite (i.e. you're the one who has to walk 15 miles to work).

  3. Guest says:

    Yeah!

    -John Paulson

  4. El Guesto says:

    So back to pimpin hoes for uncorrelated returns.

  5. George S. says:

    And kids were kids, and sat at the appropriate table.

  6. hardwell says:

    "europe has 3 days left" – soros

    • Dr. Evil says:

      The pound is overvalued and I'll make ONE BILLION DOLLARS, BUAHAHAHA, MUAHAHAHA, HAAAHAHAHA

      your move Dr. Hatdwell

  7. Chris H. says:

    George is nostalgic for 20 years ago, when his girlfriend wasn’t born yet.

    Chris: So George, what’s with the housekey with a ribbon tied around it, the industrial sized tube of Ben Gay, and the bottle of bubbly?
    George: You are not Adriana. Ver is she?
    Chris: What is that smell, did you bathe in Old Spice? Why don’t you have a seat over there…
    George: I do not take ze lip from you, dumkof, bring me ze girl!

  8. Guest says:

    True but irrelevant. A mediocre manager can get rich off the AUM fees. The only question is how long it takes for LPs to figure this out and pay for alpha only. So far, so good.

    • small fund says:

      Still have to raise the capital, which is a skill itself you smarmy fuck.
      Man. Fees can often approximate overhead etc.

      • Guest says:

        2% can approximate overhead? Kind of depends on your definition of overhead, no? Regardless, that's your problem. ETFs and index funds charge 10% of that and I'm pretty sure they aren't mostly operating at a loss. (But they are mostly outperforming hedge funds, as an asset class, after fees).

        LPs who pay one cent in AUM fees for anything over a billion or two: Idiots.

  9. Mrs_Slocombe says:

    Gasparino called, he’s indifferent to Soros’ 30-year winning investment strategy but wants to know his secret for that outstanding fucking head of hair.

    • Chaz Inner Thoughts says:

      Also, open to swapping ghabba ghoul for hurka, meet him in the Equinox steam room, light up a cigar so he knows its you.

  10. Indian HFA says:

    Volatility… heh heh, that's cute.

  11. Fluffing Quant says:

    Unrelated, but from the DealBook piece about no more brickbreaker:

    "Richard B. Handler, the chief executive of Jefferies, is among those who will no doubt be glad to hear that all is not lost for BrickBreaker. For years, Mr. Handler was known to play the game in elevators and between meetings."

    Guess he handles the balls as well.

  12. G. Soros says:

    In addition to outperforming the markets for thirty years I would also like to mention that I get mad gash.

  13. sohbet says:

    officers to investigate Blackstone's fishy financial transactions, but they wound up giving them