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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (66686)	7/29/2022 12:14:05 AM
From: Sun Tzu	1 Recommendation Recommended By ajtj99 Respond to of 97953

Since I started going on twitter, I've made contacts with a few hedge fund managers and advisory firms. Many of them live in an entirely different world than your average trader, especially once you get into volatility derivatives and risk trading. A typical answer to why did you buy/sell this thing is something along the lines of an optimizer program told me to reduce the size of position X to this amount and I didn't get to fill it all yesterday so I had to catch up today. You will also hear them talk about hedging strategies in a very different way than a retail trader thinks. But that is to be expected. What was unexpected to me, is hedge funds keeping an eye on the P/L of their big rivals and setting traps for them right around where they would get their redemption letters. To understand this, you need to know that you cannot take your money out of a hedge fund any time that you want. Typically there is 45 day notice required prior to the redemption window. Based on that, Tiger Global or Bill Ackman or whoever need to make their numbers by November 1st. Other hedge funds assess what the stressed ones will have to do. Which losses will they have to cut and where will they have to place their bets. Here is Kuppy trying to rally others up to his side based on such an analysis. This is just one example, but a pretty good case study. Read the whole thread and the comments too. This is a subject of discussion in other threads too. PS If you follow me on Twitter, you will hear about these things sooner than you would on SI Kuppy is long based on playing hedge fund flow of funds. I like his train of thought. Decades ago, an old hand described the market to me as a beauty contest where you win not by choosing the best looking girl, but by betting on the girl that most people will vote for :) https://t.co/PMz142UMxT — Archer (@WallSt_SunTzu) July 27, 2022