Replies to post #106869 on ajtj99's Market Pulse

[ajtj99]

Good points. Harvard's endowment fund invests in hedge funds that use quant systems.

Of course, that Harvard econ grad I mentioned earlier also made a point to illustrate that while he believes these systems can work for some time, the meltdown of the Goldman Alpha fund shows that it's fools work.

It's practically like talking religion, so you can't get anywhere with these folks.

On probably 5 occasions over the years I've shown this person how bubbles re-trace in a bell curve, and it's all just dismissed. The latest example was with Nickel this spring. Look at a chart of Nickel now. You'll see a, well, you know what it will look like.

[TJ Parker]

> The funny thing is that these same rich people that are saying
> the market can't be timed are actually using hedge funds to
> make money. Many hedge funds use quant (mathematical models) to
> enter and exit positions, thus, timing the market.

hedge funds don't attempt to time the market. they employ different strategies, of course - statistical arbitrage or other - but usually attempt to exploit market inefficiencies. just like many of the daytraders do.