Comments on: The End of (asset management) History? http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/ Hedge funds, portable alpha, 130/30 and alpha-centric investing Wed, 17 Mar 2010 03:10:00 +0000 http://wordpress.org/?v=abc hourly 1 By: Walt French http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/comment-page-1/#comment-90731 Walt French Fri, 14 Mar 2008 01:52:02 +0000 http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/#comment-90731 Frankly, the $100 billion seemed a bit low. The $1.5 trillion (est market cap) Financial Service industry has other income besides the tips it collects as Maître d' to the capital markets, but Wall Street DOES have expensive habits to support. I also wonder about this fixation on scoring who beats the market versus who doesn't. If there were a perfectly efficient market, and half the investors made low-risk, low-return investors, they should be just as happy as the high-risk, high-return crowd. Except you'd have all these white-shoe types telling you that you could earn more, never mention the risk, and the little two-and-twenty intermediation they would be performing for you. Frankly, the $100 billion seemed a bit low. The $1.5 trillion (est market cap) Financial Service industry has other income besides the tips it collects as Maître d’ to the capital markets, but Wall Street DOES have expensive habits to support.

I also wonder about this fixation on scoring who beats the market versus who doesn’t. If there were a perfectly efficient market, and half the investors made low-risk, low-return investors, they should be just as happy as the high-risk, high-return crowd. Except you’d have all these white-shoe types telling you that you could earn more, never mention the risk, and the little two-and-twenty intermediation they would be performing for you.

]]> By: Thursday links: surprise modeling « Abnormal Returns http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/comment-page-1/#comment-90654 Thursday links: surprise modeling « Abnormal Returns Thu, 13 Mar 2008 16:01:15 +0000 http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/#comment-90654 [...] “At the end of the day, most academics seem to now believe that markets are pretty efficient, but not perfectly efficient.” (All About Alpha) [...] [...] “At the end of the day, most academics seem to now believe that markets are pretty efficient, but not perfectly efficient.” (All About Alpha) [...]

]]> By: Rolfen http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/comment-page-1/#comment-90635 Rolfen Thu, 13 Mar 2008 13:17:03 +0000 http://allaboutalpha.com/blog/2008/03/12/the-end-of-asset-management-history/#comment-90635 It might be an interesting situation if everyone holds the "market" by investing in an ETF. The efficient capital flows, going to "better" firms, incentives for companies to perform etc. would disappear. Or am I missing something and thus horribly wrong. It might be an interesting situation if everyone holds the “market” by investing in an ETF. The efficient capital flows, going to “better” firms, incentives for companies to perform etc. would disappear. Or am I missing something and thus horribly wrong.

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